Crowdfunding is the updated internet version of an activity that has been around for more than 500 years: collecting money from a bunch of people, the crowd, to support a project or effort, like publishing a book or helping a deserving person through hard times.
Today there are hundreds, if not thousands, of crowdfunding platforms used to raise money for a dizzying variety of projects from startups to nonprofits, movies to music CDs, science research and inventions and, most visibly lately, to raise money for victims of disasters. These campaigns are typically used for one-time projects or events to augment other types of fundraising.
The term crowdfunding applies only to raising money while crowdsourcing, which is the umbrella term for any crowd activity. Crowdsourcing was first defined by Jeff Howe in Wired Magazine. At this time, there is some confusion about which term to use when.
To read the entire article, please visit this address: http://www.triplepundit.com/2013/06/crowdfunding-platforms/
[Source: Priscilla Burgess @ Triple Pundit]