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Crowdfunding and Crowdsourcing – An Exciting or Dangerous Trend?

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I got an email the other day from a friend who is a full-time missionary. As a unique way to raise funds, he was asking for people to commit to a $5 donation per month -- and he actually urged people NOT to give more than that. His thinking was that with a small commitment from many people, his support would be more stable than it is when people commit to large sums and then back out.

My wife and I like what he is doing and signed up. Maybe you've been asked for something similar, as the trend of "crowdfunding" has exploded recently. I had another friend that published a book using Kickstarter.com, a popular crowdfunding site. And of course, President Obama famously used crowdfunding to revolutionize campaign fundraising in the 2008 election.

Crowdsourcing comic by Dan Rutledge, 2011.For some reason, though, as I thought more about my friend's $5 campaign, it started to bother me. I began wondering whether the "crowd-everything" trend was a good one. I was reading a book the other day by Richard Swenson. Swenson is a futurist that spends his time tracking trends. He was showing statistics related to the unprecedented pace of progress in the last twenty years and how the graphs are reaching a staggering point on the curve that looks mathematically unsustainable. This escalation trend spans almost every area of life from the number of hours we work each week to the amount of media generated each year. A simple consumer-goods example is that twenty years ago you went into a grocery store to buy coffee and there were a couple simple brands to choose from. Now, there is an entire aisle of choices and options and flavors and price points… and at some point the curve of the graph reaches a mathematical breaking point. That is, there are only so many options you can have for coffee before the whole coffee industry becomes unsustainable and has to consolidate or we all break down in tears in the coffee aisle from decision overload and we just go buy some milk instead. And that breaking point looks to be coming in hundreds of escalating areas of our society.

As I thought about it, there are two primary reasons why crowdfunding and crowdsourcing are increasing right now.

First - technology is enabling this. A $5 campaign never would have worked in the past… because you'd be mailing letters and sending out monthly reminders and getting checks in the mail and depositing them… and you'd end up spending so much time and effort that it wouldn’t be worth it. Email and auto-withdrawal and the internet make it all possible. It many ways, it's a great time to be alive.

But the second reason this is happening is because of an increasing lack of commitment from people brought on by their escalating pace of life. There are now so many ways to spend your money and so many things to support… that my friend was finding that no one will commit any longer to giving $50 a month consistently. Because we're all dealing with so much "stuff" - the only way to get things done is to ask for very small amounts of time or money from lots and lots people.

The thing that really bothered me was where this trend is leading. There is a breaking point coming. Sure, it's great that I have one friend that does this $5 idea… but soon I will have 2… then 5… then 100. Before long I'll have hundreds of people asking me for $5 a month to the point that it's going to be overload every time I open my mailbox. What will be next? Some kind of donation technology where you donate a penny on top of every single purchase you make? Think it won’t happen? Just wait. I’m happy to support my friend, but I'm exhausted already for where this is headed.

The reason these trends fascinate and concern me, of course, is because SignUpGenius is at the core a crowdsourcing utility. Instead of funds, SignUpGenius breaks down tasks and divides the work amongst lots of people. And I actually created it because the escalation of volunteering requests is already reaching a mathematical breaking point. Families in my stage of life are experiencing "death by paper-cut" with an overwhelming number of tiny commitments that are nearly impossible to organize and maintain. 

Thirty years ago, when I was growing up, there was not as much need for SignUpGenius. When I went to church… my Sunday School teacher Mrs. Irish was there every week and she had committed to that responsibility for nearly ten years. No one needed to organize that. But now, people have so many responsibilities that a church needs to schedule a different volunteer every week and people will only make a commitment of once a month for six months. It's maddening to coordinate that without some kind of electronic tool like SignUpGenius.

So what does this all mean for SignUpGenius? It means first of all, that this tool is INCREASINGLY needed to try and simplify a life of crowdsourcing. We can't stop the freight train of culture and therefore we have to be able to manage it. That's the good part of what SignUpGenius does – and it does it very well. But the danger is that it could also enable further crowdsourcing escalation. The more our site grows, the more I am convinced that it is an important responsibility for each person that uses our tool to think about what they are doing. As much as we're glad to have new users, we don't want to run this site if it just contributes to bombarding people with hundreds of more responsibilities.

School, church, nonprofit, sports leaders… you need to start asking yourself:

Is this event really valuable? Is everything I'm asking for really needed? Is my task something so critical that an entire group of people needs to band together immediately and make it happen? For example, if your child's 3rd grade classroom doesn't have “Friday study snacks” brought by a different parent each week, is anybody really damaged? Is that something that could just be cut? Definitely raise supplies for that orphanage in Africa. And organize meals for that friend that has cancer. But we all have a little bit of responsibility to throttle the crowdsourcing/crowdfunding trend. Please think. Don't just use our tool to overwhelm people and create more busyness.

Otherwise, I'm just going to break down and cry… and go drink some milk.

Posted by Dan Rutledge




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Comments


Posted by Dan Rutledge on Fri Feb 10, 2012 4:28 PM EST
Super glad to hear that Julie. That's our hope for the site for sure - that it will save time for both coordinators and their volunteers! Appreciate the comment.


Posted by Julie Luton on Fri Feb 10, 2012 10:10 AM EST
I get the idea behind your post, but I'm less concerned that you about your site leading to over-commitment or overuse. Instead, I see this signup tool as a way for people to manage more efficiently the things they care enough about to commit to (if that sentence makes any sense). Used correctly, it should save time and worry, both on the part of the signup creator and the signup user. As a volunteer, I'm more willing to agree to organize something if I know I won't have to keep track of everything manually. Thus, I remain committed and yet not overworked.


Posted by Katherine (jewelry making whiz) Wagner on Thu Dec 15, 2011 9:09 AM EST
"Crowd funding (sometimes called crowd financing, crowd sourced capital, or street performer protocol) describes the collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the Internet, to support efforts initiated by other people or organizations. Crowd funding occurs for any variety of purposes"..So, it's quite fine to whether donate large amount or just donate a little as long as your money or resource goes to a trusted purpose. Commitment is always there. No matter what the amount is.


Posted by Dan Rutledge on Wed Dec 14, 2011 4:07 PM EST
Sure thing Dave. The book of his I read recently is entitled "In Search of Balance: Keys to a Stable Life" and it is a follow up to his best seller "Margin: Restoring Emotional, Physical, Financial, and Time Reserves to Overloaded Lives." Both are easily findable on Amazon or elsewhere and I recommend them both. As a very simplified explanation... Margin deals with reducing the amount of things we pack into our time... and Balance goes a step further and makes sure we have chosen to do the most important things with our time. I got the chance to hear Dr. Swenson speak last year, which was a treat!


Posted by Dave Williamson on Wed Dec 14, 2011 4:05 PM EST
I'm sure many of us would be interested in getting a link to Richard Swenson's work. Is that available? If so, please post it here. Thanks alot!


Posted by Truth About Abs Truth About Abs on Fri Dec 9, 2011 5:22 PM EST
Its actual reality indeed.By the way interesting post.But you can donate if you want.


Posted by Dan Rutledge on Fri Dec 9, 2011 8:31 AM EST
As a follow up to the article... I was making a purchase online recently and the store asked if I'd like to "round up for charity" and donate two cents to a charity. Apparently... that's already being done!


Posted by iwc replica hai on Fri Dec 9, 2011 3:42 AM EST
It’s really a nice and helpful piece of info. I am glad that you shared this helpful information with us. Please keep us up to date like this. Thank you for sharing.


Posted by Dan Rutledge on Fri Dec 2, 2011 1:15 PM EST
That's a great point - the good part of crowdsourcing/funding is it allows you to be involved even if you can't be involved in a major way because of other commitments. Thanks for commenting as I didn't mean to imply that no one makes large commitments anymore or that crowdfunding is completely bad. I'm just concerned in a general way about the trend.


Posted by Jeanette Flood on Fri Dec 2, 2011 12:29 PM EST
Sometimes we HAVE committed to larger amounts and we want to and do remain faithful to those commitments. Yet... we also want to give to so many other worthwhile needs and so end up giving small amounts to lots of other causes.


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