What is fundraising? What is the difference between fundraising and crowdfunding? How is the awareness created? Are you sure all crowdfunding money is used for real purposes? How does the individual have so much money? Is the crowdfunding money going to the person or not? There are several questions regarding the same.
To put it in simple words, crowdfunding is the practice of raising money for a project by soliciting contributions from various people. On the other hand, fundraising is the process of soliciting financial support for a variety of causes or charities.
On Friday, the Kerala High Court ruled that the state government should have some control over fundraising, especially crowdfunding.
The Court went on to say that the state government has yet to develop a policy on crowdfunding. This occurred as the committee debated a plea for government aid in importing a medicine to treat a six-month-old infant with a rare genetic illness.
The administration has been ordered to tell the Court about the provisions in place to regulate crowdfunding in the state by Justice PB Suresh Kumar’s bench.
“Various individuals, including YouTubers, are raising donations. They are collecting funds for medical care. Within one or two days, 18 crores were collected. What happens to the money? Where does the money come from? Who was the one who got the money? What is the point of equilibrium? Is there any state oversight or supervision over this money collection? When the Kerala government began collecting funds for free vaccines, it received only 68 lakhs, but some individuals collected 18 crores in just seven days. What’s the secret?” the Court questioned.
However, the Court did note that the state government must maintain some level of supervision over crowdfunding.