Crowdfunding and Businesses: the concept of Matchfunding

Corporate Social Responsibility (CSR) is important to businesses for several key reasons, such as enhanced reputation, employee engagement, operational cost savings, customer relations, sustainable growth, and other benefits.

Ultimately, CSR is important to businesses not only because it is the right thing to do, but also because it offers significant benefits to the organisation.

So what does that have to do with crowdfunding?

Three words:

• Accountability
• Transparencyo
• Efficiency

Often, CSR happens through the giving of a cheque in a one-time event and the relationship ends there (sometimes until the following year when this is repeated). However, this relationship can be much more fruitful through the use of a reputable crowdfunding platform and the concept of matchfunding.

What’s matchfunding? Matchfunding is a concept whereby a business ‘matches’ the funds raised by a VO through a crowdfunding campaign. It allows for a more wholesome rapport between the organisations, while encouraging the public to get involved and learn more about both entities.

How does this work? The VO launches a crowdfunding campaign on Zaar with an intended goal amount. The public will donate to the campaign while it's online, and once the campaign closes, the business will typically donate the same amount that was raised.

However, there are different options that a business can choose from making the initiative more flexible:

• First-in: the business will start off the crowdfunding campaign with a lump sum of money to initiate the collection process. This shows commitment to the campaign. It can be a fixed sum regardless of the amount of the campaign, or a %of the amount to be raised.
• Bridging: the business will donate a lump sum midway through the campaign to boost the fundraising efforts; the VO still needs to work to collect the remainder of the money
• Top-up: the business will top up the remaining money needed to hit the goal. It can help to reach the target amount, or to give a booster to the project and exceed the target amount.
• One-on-one: the business will donate at stages throughout the campaign depending on the amounts raised e.g. for every €100 raised, the business will donate €100. This helps to keep the crowd motivated.

How can you get involved as a business? Identify and reach out to the registered VO that you’d like to support.

Contact Zaar to set up a briefing meeting wherein they’ll explain the crowdfunding process, what is required and what the benefits are.

The whole process will take approximately 10-12 weeks, so start planning! Contact giselle@zaar.com.mt