Crowdfunding exploded from a flighty web 2.0 idea to a bonafide sensation the span of just a few short years. If you asked people back in the year 2000 if they'd ever give some anonymous stranger on the internet a few dollars just because they asked, they'd probably laugh. Now, you can't check your twitter feed without running into pitches from people raising money to fund their business ventures, pleas for help paying for an expensive surgery, and even looking for funding for elaborate practical jokes just for the laughs.

As a non-profit, the idea is tempting. In the face of all the work it takes to get attention, pursue people for regular donations, and get sizable contributions, just tossing up a fundraising page somewhere and having thousands of people dropping a dollar or two into the bucket seems like a dream.

Sadly, there are some significant hurdles to that dream. While crowdfunding can be successful for some non-profits and in the right situation, the system has a few intrinsic flaws that can hold back your efforts.

If you're staking your fundraising goals on a crowdfunding operation catching on and going viral, you're basically shooting on long odds. Manufacturing something intentionally designed to go viral rarely works. In fact, it often carries the risk of backfiring and creating hostility aimed at your brand (just ask Mountain Dew about their poorly considered "puppy-monkey-baby” Super Bowl commercial and how well that went over for everyone involved).

Going viral is basically winning the internet lottery, and anyone claiming to have a "viral strategy” is trying to sell you snake oil. They're to the internet what terrible paperbacks promising "guaranteed wins” at the blackjack table are for the New Vegas airport. Don't give them the time of day.

Catching on in a major way is a matter of luck in the best conditions, but recent studies paint an even grimmer picture. Some believe viral sensations are on the decline, that has the internet matures and sees more sudden fads come and go people are becoming less impressed, less inclined to jump on the bandwagon. The internet is a fickle beast.

Non-profits rely on relationships and stories to build a following. They need to tap into something personal and profound in a person and speak to them in a very intimate way.

Crowdfunding relies on hype and excitement. It's about being swept up by a flashy pitch or a big event. It's easy to charm people into kicking in $5 on some retro videogame, or convince ironic teens to help fund a potato salad. 

Trying to address a serious issue in the same space doesn't work. Especially when trying to combat long-term, systemic issues or provide for on-going needs. If the issue doesn't seem exciting or pressing, it is all too easy for people to ignore it just like they ignore donation boxes in the super market, or homeless people on the street.

There is a BIG exception to this rule. In the aftermath of a disaster or calamity, crowdfunding can be an EXCELLENT way to raise funds quickly. For example, literally hundreds of crowdfunding efforts sprung up after the Fort McMurray fires and people flocked to support them. In the case of a tragedy, crowdfunding can be a fantastic vehicle for quickly reaching out to people who are paying attention and want to help.

The dark side of of crowdfunding's ease of operation is that it is also a tempting target for con artists. Using the same example of the Fort McMurray, amongst those hundreds of legitimate and well-meaning crowdfunding efforts, there were also plenty of fake charities and opportunists who took advantage of the situations.

Unscrupulous people taking advantage of crowdfunding platforms has left a real bad taste in many people's mouths. There is a building sensation of automatic suspicion against crowdfunded charities, a guarded cynicism that is not entirely unfounded.

That isn't a reason to write off the whole idea, but it might give you pause. It may be better to stick with the old fashion way of reaching out to people in a more targeted, personalized manner and building a relationship based on trust, transparency, and common cause than trying to get lucky in the crowdfunding game.

Crowdfunding has a role in the modern non-profit. It is a tool that should be used when the situation calls for it, not something to rely on.