Local 6 Extra: Crowdfunding Contributions - WPSD Local 6: Your news, weather, and sports authority

Local 6 Extra: Crowdfunding Contributions

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PADUCAH, Ky - The switch to digital was a costly change for Maiden Alley Cinema.

"Our equipment was $70,000 and we also had to bear some of the costs redoing our booth," said Executive Director Landee Bryant-Greene.

That's a lot of money for a small, independent theater. So Bryant-Greene took to the internet to secure the funding.  "We spread the world a lot through Facebook and Twitter and even Instagram. That's the way to get the word out," she said.

She also tapped into the crowdfunding site Kickstarter to kick start the digital conversion process.  The goal was to collect $35,000 in 60 days.  313 backers exceeded that goal. 

Soliciting for donations through a jar is now considered old-school.  Crowdfunding can be done on your computer and be completely anonymous.  The 'Business News Daily' reports Crowdfunding ideas are making it easier to finance business start-ups, are more cost-effective for non-profits to advertise their cause and are bringing more attention to social issues.

Allie Frick's friends came to her aid when she lost her left arm in a Graves County crash.  They created a Go Fund Me page to help pay for a service dog.

"A lot of time gets put into them and it's just unbelievable what they can end up doing for you," Frick said.

The cost to train her German Shepard Timber can top $8,000.  She's on disability, so saving that money and waiting for a dog would have taken years.

"I just don't like to feel like a charity case because I know that there are other people struggling worse than I am," she told Local 6.

Her friends are trying to raise $10,000.  So far they are more than a third of the way there.  Money that is coming in, in large part, is from social media and from people who have never met her - like Sherri Edge from Oklahoma City.  She works for a prosthetics company and wanted to donate to Frick's cause.

"That attracted me right away to Allie's story and then the component of having an animal, a service dog was great because I love dogs," Edge told us.

Inc Magazine said the popularity of crowdfunding can been seen in how much money people are investing.  In 2011, $1.5 billion was given to crowdfunding ideas.  In 2013, $5.1 billion was donated and Fortune Magazine said crowdfunding could top $96 billion by 2025.

Frick is already seeing the affects of the power of the people.  "I'll have cards sent in the mail and they're like 'Hey, you know, someone told me about you.  I don't know you but from your story I just want to help you and encourage you to bless others as we've blessed you."'

Crowdfunding is also creating big business for entrepreneurs. 'Equity Crowdfunding' is available in some states.  Click here for ideas behind private capital ventures.


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