New Crowdfunding Website's Donation Model Combats Campaign Fraud
New crowdfunding Site, Crowdfunding Bum, is helping to reduce the likelihood of campaign fraud with its innovative take on the principle of sowing and reaping.
DOVER, DELAWARE, UNITED STATES, November 7, 2016 /EINPresswire.com/ — Ever since a British rock band Marillion successfully funded their reunion tour in 1997, through the generous online donations of adoring fans, crowdfunding has blossomed into a lifesaver for many individuals who have no other means of funding their dreams or needs. However, because the crowdfunding concept is built on trust, it is susceptible to fraud. In fact, complaints to the Federal Trade Commission about campaign fraud are on the increase and in 2015; the FTC settled its first crowdfunding fraud case against a project creator who defrauded contributors for more than $100,000.
Incorporated in early May 2016, Crowdfunding Bum, LLC has launched a new website with an age-old principle that discourages even the very thought of scamming contributors. The site employs a unique concept of crowdfunding where members have to donate to existing bum projects before their own campaign is activated. The donations need, to sum up to 3% of what the campaigner wants to raise. So if a project creator wants to raise $100,000, his donation to other projects have to total $3,000. This initial sowing makes the website an unlikely target for those with the intention of scamming contributors.
Founder of Crowdfunding Bum, Bernardo Pereira said: “No scammer would donate first in order to scam; it’s not in their nature. And that’s why contributors can have complete confidence when supporting projects hosted by Crowdfunding Bum.”
Aside from helping to make dreams come true via their other claim to fame, Self-funding, Crowdfunding Bum has managed to solve the crowdfunding trust conundrum, ensuring that contributors’ decision to fund projects doesn’t turn into a nightmare. For further information about Crowdfunding Bum or to contribute to a campaign visit: https://crowdfundingbum.com.
Media Contact: Bernardo Pereira
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