A financial advisor calls for crowdfunding platforms for endowment products
Majid bin Musaed Aba Al-Khail, consultant and specialist in the field of financial resources development, called for creating crowdfunding platforms for endowment products, provided that these platforms are clear-cut, with clear visions and messages, to serve endowment projects.
This came during the meeting of the Diwaniyah of Endowments organized by the Asharqia Chamber represented by the Endowments Committee on the evening of Wednesday 28 April 2021 through visual communication and managed by Engineer Abdulaziz Bunis, Executive Director of the Association for Empowering Endowments, as he stressed the issue of determining a budget for each area of the platform according to the conditions of the endowment It contributes to financing endowment products by creating a spirit of competition between associations to achieve the goal of the endowment product by providing an amount equal to the donation collected through the platform.
Aba Al-Khail gave an explanation of the difference between participatory economics and crowdfunding, which revolves around the issue of profitability in the first and volunteerism in the second, explaining that the participatory economy is an economic model based on the sharing of resources, and based on the sharing of human and material resources and assets between individuals and private and public institutions. The creation, production, distribution, trade, and joint consumption of goods and services by various people and organizations, explaining that one of the most important factors for the success of the sharing economy is the confidence of the parties in each other, as this type of economy is growing day by day, but it is still not completely acceptable. It has advantages and disadvantages and faces many challenges and difficulties. This is in contrast to the adoption of the crowdfunding principle, which carries several advantages represented in engaging the community in creating solutions, enhancing the project's reputation, and being a powerful marketing tool for the entity that achieves its goals quickly, with few risks.
In this regard, he said that crowdfunding has several success elements, as it achieves high degrees of transparency and governance, due to its reliance on reports, and seeks to benefit from the client as much as possible, such as frequent donation, diversification of methods of reaching the public, increasing and diversifying products, and network marketing.