If you are on social media you are no doubt
familiar with crowdfunding, whereby individuals use websites likeGoFundMe.com
to champion causes that are then funded through donations from the community at
large. You might see such crusades on a weekly -- even daily -- basis on your
Facebook and Twitter feeds. Whether it’s for a sick family member or the
start-up of a new business, crowdfunding efforts are plentiful.
They are extremely effective, too.
In 2013, the still-young crowdfunding industry (it
unofficially began in 2006) collected over $5 billion worldwide and industry
experts figure that annual collections will surpass $90 billion by 2025.
Once thought to be only the domain of charitable
causes and entrepreneurial dreams, crowdfunding has in the past couple of years
caught the attention of the public sector. Governing bodies that were strained
by the Great Recession and an increasing disdain for tax growth from their
residents have taken to the net to collect money for niceties they might not
otherwise have.
A crowdfunding effort in Memphis, Tennessee easily
collected $75,000 to fill a public funding gap in the development of a bike
lane in a growing commercial district. Philadelphia donors helped secure
$10,000 to keep a skate park alive. New Haven, Connecticut’s Ignite! New Haven plan has funded a
public kitchen, a youth lacrosse league and bike racks throughout the city. The
online craze also brought in $100,000 for an underground park in Manhattan.
A 2014 study by MIT looked at four years of civic
crowdfunding around the world and found some 1,200 such projects. Most were
modest in size, with goals of $8,000 (far below those listed above). It’s those
types of smaller campaigns that merit serious consideration. Local governments
and schools could put crowdfunding websites to use (there are now numerous
sites specific to civic projects) to bring to life any number of one-shot or
long-term projects.
A perfect example of where it could be used locally
is the City of Lockport. A lot of local residents were frustrated that there
wasn’t a New Year’s Eve ball drop and by the lack of family-friendly things to
do in the Lock City that night. You really can’t blame City officials for not
hosting such an event. A ball drop is a nice thing to have, but it’s not
something you need. For a City on the brink of bankruptcy (let alone one that’s
financially healthy) you have to make such decisions.
Needs always trump wants. But, if someone wants
something badly enough (like a New Year’s Eve festivity), they can get it with
crowdfunding.
There are so many more potential local projects
facing similar obstacles that could go this route. Booster clubs could use
crowdfunding websites to prevent school sports from going on the chopping
block. Local towns could add new equipment or skate pads to their playgrounds.
County officials could improve the trails and outbuildings at any one of our
parks. Splash pads could be built in any one of the County’s three cities.
Civic crowdfunding works because charity is
different than taxes. If you are being forced to give up more of your money (which
is what taxes do), you’re not interested in doing so, especially when you know
waste abounds in any given bureaucracy. But, if people are given the chance of to
give away their money under their own free will for an appropriately earmarked
event or item, especially one that is attractive to them, they will give; the
Manhattan and Memphis projects show that.
In its first nine years of existence crowdfunding
has shown its value and effectiveness to private endeavors. Heading to its
second decade it has shown its potential for public endeavors. It’s time for
local governments to capitalize on that and invest in new projects not by
force, but instead by goodwill. The list of possibilities is endless and
limited only by creativity and the interest of donors.
From the 16 February 2015 Lockport Union Sun and Journal
No comments:
Post a Comment