Business Pitch Dictionary by pitch.dog
Funding instruments & exemptions · Core

Donation crowdfunding

Also called: donation-based crowdfunding

ELI5

People give money without expecting ownership or repayment.

Used in conversation

“Donation crowdfunding should not be marketed as an investment.”

Definition

Raising contributions without financial return, usually for charitable, community or personal purposes.

Here “Donation crowdfunding” means: Raising contributions without financial return, usually for charitable, community or personal purposes.

Pitch context

You will see “Donation crowdfunding” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches funding instruments & exemptions.

Why it matters: In funding instruments & exemptions, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 5

Direct term-level sources and supporting source families.