National crowdfunding and Ukrainian fundraising
For eight months Ukrainian people by themself continue doing crowdfunding and fundraising for great amounts of money and I’m sure most of them don’t even know about it.
We used to call crowdfunding a campaign that helps to raise money with donations for some organization, startup, company, etc. Ukrainian type of crowdfunding is unique because it’s C2C (customer to customer), but I rather call it P2P — people to people. So let’s figure out my word game. And why G2C (government to citizens) doesn’t work in this case.
Since 24 February, the public sector in Ukraine has shown its strength and ability to help the army, refugees, and even animals with the help of volunteer work and powerful fundraising. Donations became a new trend, especially for Ukraine, where we don’t have enough advanced culture of paid subscriptions, pay for services, and most importantly, there was no trust for transit money for strangers just for good reason and help. People used to be in situations with scammers, whom you can meet on the street, in the underground, and elsewhere. But the war changed our outlook.
Fundraising, particularly developing, is carried out not only by known and large foundations, but by micro-businesses, local brands, cafes, and social media pages of defenders’ family members, volunteers, and soldiers.
But why not the government, you’ll ask? Popular question and here is the answer.
Firstly, fundraising is faster. You collect money — you buy. In most cases, as a volunteer, you don’t need tons of papers to make an order (except when you are buying very specialized equipment that needs specific improvements and documentation). And speed is a decisive factor there because most of the needs are for yesterday.
Secondly, the government does not always have resources and the bureaucratic system isn’t prepared for buying ordinary items, such as power banks, pieces of warm clothes, and other common-use items.
Furthermore, some things, like commercial drones, are necessary for warfare nowadays, but the Ukrainian government has problems with their purchases. Drones companies don’t want to sell their items to government organizations, because this way their company takes responsibility for the war and people’s deaths, and it is contradictory to their “neutral and antiwar position”.
The common explanation for both arguments is bureaucracy.
Let’s get back to my statement that donation is a new Ukrainian trend. It’s totally justified. Now all businesses have become socially responsible, there are quite a few options on how to encourage people to donate: percent from a profit of selling an exact item, an auction for services, or just a virtual item that you can’t get physically, but you donate for its digital form or just name.
I think entrepreneurs who don’t implement donations to their business development plans are less popular now. Because it’s very important to help and not to feel guilty for buying something for your comfort, while your country is at war. Maybe these kinds of entrepreneurs could even meet blame and be accused of social irresponsibility or even made an object of suspicion.
It’s interesting how this mechanism will work after victory and how people’s attitudes to money, charity, and donations will change. I don’t think it’ll just be over and that’s it, because this element of war life, like all others, will affect the next generations of Ukrainians.
P. S. even now young Ukrainians fundraise money for their country, making accessories, baking sweets, and much more.
Stand with Ukraine! 🇺🇦
