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Introduction to Employee Welfare Crowdfunding

Crowdfunding is a newly adapted system where a large number of people come together and invest funds or donate into a single project or venture through using internet platform. This kind of practice is most popularly known as Crowdfunding because the funds are basically generated from the crowd on the internet.

There are multiple applications of Crowdfunding today where such practice is in motion for different goals such as Equity fundraising, Real Estate Investments, Donations, Pledges or even Loans. Overtime, these applications are even customized to develop new channels of Crowdfunding as generating funds from the crowd is the simplest and easiest mode of funding a project today.

With the help of such custom Crowdfunding platform is introducing new concept and application of Employee Welfare Crowdfunding also known as Employee Crowd Funding or Employee Funding platform where a project is created by an Employee of the company either for charity or loan purpose with an intention to raise funding through other Employees/Co-workers of the same company from all branches/franchises over the globe.

The concept of Employee Crowdfunding scheme is quite similar to that of the traditional practice of Crowdfunding with the only difference that with Employee Welfare Crowdfunding, the funds are generated from other Employees within the company.

Why Employee Welfare Crowdfunding?

Although it’s a new concept, some companies around the globe are adapting with this new system where employees in need of monetary help can post a new project and invite employee-based Crowdfunding in order to generate fund from their own colleagues within the company.

The concept is fruitful in many ways as getting a loan from banks can be a tough challenge in the complex world today as banks nowadays sanction loans after verifying several factors such as income, credit scores, bank statements etc. On the other hand, Employee Crowdfunding is free of all such hassles and with the company itself managing the overall process, the system is trustworthy enough for everyone who volunteers to lend money for the project.

Another major reason why employee welfare Crowdfunding is beneficial is that this platform can also be used to generate funds for charity in order to raise the reputation of the company as well as awareness of a good cause or campaign both within the company and the outer world.

Key Benefits of Employee Welfare Crowdfunding

Here are some of the key benefits of Employee Welfare Crowdfunding:

For Employees:

Get funding from friends and colleagues within the company

No need to wait for loan approval at banking or other financial institutions

Raise awareness about a charity campaign

Hassle-free, documentation free, simple and sound loan application process

For Companies:

Build community within the organization

Make your employees happy

Build strong relations with the employees

Develop loyalty among the employees for the company

Gather employees together for a common cause in order to spread awareness for the cause and thereby build strong reputation for the company.

Employee retention

Low employee turnover

There are basically two main channels where Employee Welfare Crowdfunding practice can come handy in every large enterprise or organization. Companies can set up a Crowdfunding platform on their website and inform all their employees in detail about the platform and how it can be used for their own welfare.

Most commonly channels for Employee Welfare Crowdfunding are as follows:


How Companies Can Implement Employee Welfare Crowdfunding System?


Another approach could be generating funds for charity. If the company or an employee of the company is supporting a good cause or charity program, they can list the project on the company’s employee welfare Crowdfunding platform and invite other employees to join and donate money for the great cause.


Let us help you!

So, now that you have decided to implement an “Employee Welfare Crowdfunding” platform within your company, then let us help you. Get in touch with us today and we will help you with our state- of-the-art custom Crowdfunding script ready to use with a single installation.

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