How does crowdfunding work?

South Africans are increasingly turning to crowdfunding to support a cause or a person. Back-A-Buddy CEO Patrick Schofield joins to explain how it works. Courtesy of #DSTV403

JOHANNESBURG - South Africans who have turned to crowdfunding to support a cause or person have made headlines this year.

Recently, over R500,000 was raised for a petrol attendant Nkosikho Mbele who gave money to a woman to top up her tank.

READ: Thousands raised for petrol attendant hero

A Bloemfontein doctor is another recent beneficiary of a crowdfunding campaign.

Doctor Paulo de Valdoleiros has been dubbed an 'angel' for charging patients only what they can afford.

Back-a-Buddy CEO Patrick Schofield explained how the process works for their company.

Schofield said the role of a crowdfunder is sometimes to vet people who attempt to scam people out of their money.

Schofield said in their case, they sometimes pay the providers (hospitals, universities) directly and in other cases, as with Mbele, administer the funds according to the direction of the recipient. 

Five percent of the campaign funds go to funding the non-profit but the rest of the money belongs to the recipient of the fund.

Source
eNCA