Crowdfunding as a tool for alternative financing has emerged relatively recently and is of limited use in Ukraine today. At the same time, it has significant potential, which can contribute to the implementation of a wide range of projects that for various reasons are not of interest to traditional lenders or investors. The aim of the article is to determine the benefits of crowdfunding for its participants, the peculiarities of the implementation of certain types of crowdfunding and identify risks that may be generated by them, as well as develop practical recommendations for crowdfunding campaigns by entrepreneurs and authors of community development projects. The article identifies the benefits of crowdfunding for project authors (low cost of capital, access to information and potential investors) and investors (clarity, low risks, access to new products, the ability to support creative ideas), substantiates the role of crowdfunding platforms in realizing the benefits of crowdfunding. The advantages and disadvantages of using certain types of crowdfunding are described. Recommendations for planning and implementation of the main stages of crowdfunding campaigns - idea development, target audience determination, research, communication, project budgeting, reward system development, campaign schedule development – are developed. The factors of choosing a crowdfunding platform for hosting the project are determined. The possibility of using crowdfunding for collective financing of socio-cultural projects within the public budgets of the united territorial communities is shown. The risks of using crowdfunding for project authors and potential investors are identified. Those risks are primarily related to realistic expectations and proper preparation for the fundraising campaign by project authors, as well as the lack of guarantees for investors in the event of problems or bankruptcy of the crowdfunding platform. The author highlights that the growth of public awareness about the possibilities of implementing social or business initiatives through crowdfunding platforms will contribute to the development of platforms, improvement of technological equipment, and expansion of their range of services.
A viability criterion for computer system development projects