Crowdfunding News – All The Latest Updates
Hi guys and welcome to another fortnightly edition of the latest crowdfunding news from the UK and around the world. Today we start our crowdfunding journey from looking at a government backed crowdfunding scheme for cultural organisations to ending our trip on a golf course in Scotland! If you missed our last crowdfunding news round-up, catch up here.
Government To Pilot Crowdfunding Scheme For Cultural Organisations
The Government has announced that it is to pilot a crowdfunding scheme to promote use of the model by cultural organisations. (UK Fundraising, April 2016)
The pilot scheme was mentioned in the government’s white paper for culture which was launched by Minister for Culture Ed Vaizey last month. The white paper for culture focuses on two specific areas, 1) to focus on increasing participation in culture and 2) helping cultural organisations secure funding from sources other than public funding.
The white paper mentions that the Government will launch a new pilot scheme in partnership with the National Endowment for Science, Technology and the Arts, Arts Council England and the Heritage Lottery Fund and will use crowdfunding as a tool for funding cultural projects.
According to the paper, donation-based crowdfunding grew the fastest among all alternative finance models in 2015, with a 507 per cent year-on-year growth rate and £12 million distributed. (UK Fundraising, April 2016)
Image source : UK Fundraising
Australian Crowdfunding Bill Fails
We’ve previously mentioned about Australian crowdfunding on past crowdfunding news blog posts (in one of our posts from March we looked at crowdfunding legislation for start-ups).
In addtion, in our March blog post we looked at new legislation that allows unlisted public companies to raise money through crowdfunding from mum and dad investors which was approved by the lower house.
However, the Crowd-Sourced Funding bill, Australia’s push for a legislative update for investment crowdfunding regulations, has silently died in the Aussie Senate as mentioned in a recent Crowdfund Insider article.
Tom Nockolds from the Community Power Agency who was part of approving the legislation process mentioned in Crowdfund Insider : “If the legislation had passed in its proposed form, there would have been a lot of backslapping within government saying, isn’t it wonderful we’ve solved the crowd-sourced equity funding problem and we don’t have to address that anymore, when actually it would have only been half the job done at most.”
It seems for now that regulations will take a back seat as the Australian government focuses on policy initiatives based on the country’s fintech scene.
World’s Most Crowdfunded Restaurant Opens In Manchester
From leaving the southern hemisphere to now travelling back to sunny Manchester for some Mexican food!
The London-born Mexican eatery Chilango has opened its 11th UK restaurant in Manchester’s Oxford Street after raising £3.4m from crowdfunding.
Partaker told Business Quarter : “We’ve been desperate to expand our brand across the UK for some time now, and Manchester was the natural move up into the north for us.”
He also mentioned that Manchester was a perfect place for the brand as it has a fantastic buzz just like their Mexican restaurant.
Image source : Business Quarter
More People Turning To Crowdfunding To Cover Trips Abroad In U.S.
A recent survey from GoFundMe showed that there has been an increase in people using their site to help them raise money to go on trips. Six years ago, there were 135 campaigns with the goal of going abroad. Last year, there were more than 130,000.
Laniya Hooks, a senior in high school, is one of the people turning to crowdfunding to raise money for a trip to Europe. She is going to Spain, France and Italy. It’s a 19 day adventure with People to People where she will meet others abroad, help them and learn about their cultures. (WIVB, April 2016)
She decided to go on her trip a few months back, however, her father and grandmother passed away suddenly, which left the family with a lot of financial difficulties.
The 17 year old student from Buffalo decided to use crowdfunding to help her fund her trip.
Hooks told WIVB : “It’s kind of intriguing to me to see how people will help somebody they don’t even know achieve their dream, “I think it’s cool that people are helping. I chose GoFundMe because — I’ve never used it before — but I saw it work for somebody else so I thought well maybe I will give it a try and see what it’s like.”
The Buffalo student has so far raised $300, her goal is to reach $2900. If you want to help Laniya fund her trip, get involved here.
The UK’s Most Western Golf Club Turns To Crowdfunding
One for all you golf lovers out there! The UK’s most westerly golf course, Barra Golf Club, on the west coast of the Isle of Barra, in the western isles of Scotland, has turned to the internet in an attempt to raise about £30,000 for a much-needed clubhouse. (Golf Club Management, April, 2016)
The club was formed in the early 90’s and is run with little financial support, other than membership fees and an honesty box. A few months back, the second green collapsed due to erosion. In addition, the nine-hole course that overlooks the Atlantic Ocean provides no shelter for players.
Club volunteers need help to fund a small clubhouse which will provide warmth and shelter, a kitchen, WC facilities and storage. Funding for the clubhouse will also help youngsters who are keen golfers on the island. Club captain Murdoch MacKinnon mentioned in Golf Club Management : “These youngsters are the future of the club. If we don’t get some kind of clubhouse built, I fear it will close and that would be a huge shame and a big loss to the island.”
Last year in Germany, a golf club raised €500,000 from crowdfunding which helped expand its facilities.
Have an interest in golf and crowdfunding want to help the Barra Golf Club? If so, get involved here.
Image source : Crowdfunder
What Are Your Thoughts?
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