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How does Crowdfunding and CSR activities Works


In the past, the corporates used to have a bad reputation for not giving back to the society. That’s why CSR(Corporate Social Responsibility) came into the picture.

The concept of corporate social responsibility is clear, it is contributing back to the society. Any company which qualifies under sec135 of The companies act has to direct 2% of their average net profit towards social welfare. It is mainly due to this law, corporates are now involved in CSR activities.

There’s no doubt that corporate giants like Wipro, Birla’s and the Tata’s are pioneers in the field of CSR. They have been known for their popular and innovative CSR campaigns in the past. Many companies are now finding innovative ways to interact with people and start CSR campaigns. All this led them towards fundraising techniques such as “crowdfunding“. Crowdfunding is one effective strategy the brands are now using.

How does crowdfunding for a CSR campaign work?

Crowdfunding is not only used to raise funds for the CSR project but most importantly, is used to spread awareness about the cause. While most corporates make a fundraising page on their own site, while others rely on crowdfunding platforms like Milaap.

The crowdfunding industry is booming and this is the main reason why many corporates are adopting crowdfunding.

But, is this the only reason why corporates are adopting crowdfunding?
Absolutely not, there are various other reasons why corporates opt for crowdfunding.

These are the advantages the corporates have in adopting crowdfunding for their CSR activities:

1) It expands reach in media:

The media is often on a lookout for innovative fundraising campaigns. It can be used to gain positive publicity for the company. Few companies also use this as a PR tool in reaching out to the press.

2) Employee responsibility:

Employees are given different responsibilities as volunteers for the CSR campaigns. This increases engagement among the employees and gives them a sense of responsibility towards the society. By sending employees and making them involved in local community activities, the company is just strengthening bonds with the society. It is fun too!

3) Increases loyalty:

Many CSR campaigns have raised funds much more than the set target. This portrays the company in a good light and shows that the company is committed to giving back to the society. This is known to increase fan following and customer loyalty.

4) Invites Partnership:

Everyone loves a successful crowdfunding campaign. It puts the fundraiser up in the limelight. This surely does attract the attention of media, but also attracts other companies for partnerships. The outreach is brilliant online and is carried out by the customers and the community, spreading the word across different networks.

These are some of the reasons why companies must start raising funds via crowdfunding to meet their CSR goals.

  1. One can find many crowdfunding websites online. It is important to choose one according to the cause. A crowdfunding site like Milaap would be of great benefit if one is raising funds for their cause.

Here is an inspiring CSR campaign on Milaap:


Paytm is one of the largest brands in India. It is being seen as an alternative to cash payments. The campaign was #SupportOurHeroes which was aimed at the families of soldiers who died fighting for this country. The amount raised would then be used for education and paying medical bills for the families of the soldiers.
Paytm asked its users to contribute using their paytm wallets after which the company then matched every donation by contributing the same amount themselves. This campaign was held before the 70th Independence day and has successfully raised 10,88,560 rupees.

Crowdfunding platforms like Milaap in India, have helped many people raise funds for various social causes in the field of education, welfare, health and promoting entrepreneurship. It is easy, anyone can signup as a fundraiser and make their own fundraising page to receive funds.