Crowdfunding Becomes Useful Tool To Pay Medical Bills

Entrepreneurs and nonprofits have long leaned on internet fundraising to get their initiatives off the ground. Now, those facing serious medical conditions -- from Parkinson's to infertility -- are turning to the crowdfunding platform to help pay their mounting medical bills.

Launched in 2008, IndieGoGo.com enables its users to share their causes and solicit donations from complete strangers. The more than 40,000 campaigns its helped launch have ranged in scope, but the health stories typically center on the same theme. The patients face crippling conditions and can't afford the care they need.

"I think health care issues and personal health campaigns make sense, because our health care system can be very expensive sometimes," IndieGoGo founder Slava Rubin told The New York Times. "Sometimes people just need to try a different direction to get funded what they need to get funded."

Jessica Haley and her husband turned to IndieGoGo in June when they were eager to get pregnant and their insurance didn't cover fertility treatments, The Times reports. She and her husband set up an account and collected $8,050.

"I cried millions of times that day out of pure excitement and joy," Haley told the news outlet. "It was amazing to get all that support through a computer."

The site doesn’t charge its users to post their cause, but it does take a 4 percent fee from the money raised. If a campaign doesn’t meet its goal, the fee jumps to 9 percent.

From Rubin's experience, the same rule of thumb applies to all causes.

"The number one method for driving new customers is word of mouth," Rubin told Frobes.com. "Successful campaigns lead to more campaigns."

Meet five such individuals who are relying on IndieGogo supporters to help fight their illnesses. SLIDESHOW:

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Comments

[Rob Hampson]

02:56 AM on 11/28/2011

Interesting article and it's really interesting to see where Crowdfunding is expanding to. The fact that people can raise funds for their medical needs online really shows what benefit the internet has and is providing for us.

Crowdfunding is actually such an excellent way of fundraising for any type of cause or need that it's popularity is growing extremely fast. The only downside to it is that people often fall into the trap of thinking that simply setting up a fundraising page on a crowdfunding website is enough to get funded. But it's not! Setting the page up PROPERLY so that you connect with your potential donors and PROMOTING it effectively are two extremely important elements to holding a successful crowdfunder.

Just like it says here at http://www.rewarding-fundraising-ideas.com/online-donations.html#why , you have to realise that for someone to donate to you they need to have an emotional or personal connection to you or your cause. And the stronger that connection is the more likely that person will donate to you.

So don't be lazy and just set up a page quickly and expect to be funded. Set it up properly, connect, and spread the word as much as possible!

[bellmotor]

12:48 AM on 11/23/2011

need to sent this report link to the congress, head quarter of Republican office and the tea party

[tracey fletcher]

12:03 AM on 11/23/2011

I feel ill after having to see people go without care when they should be getting it without any fuss. Our problem is that insurance is a billion dollar business. Billions of dollars go into insurance companies pockets vs. helping those with medical care. If I had a wish...it would be to take health insurance away from these greedy companies and make it non-profit -- all of us putting money into this massive pool and everyone will be taken care of. There is no reason why they should profit into the billions! it is ludicrous!!

Unfortunately, insurance lobbyists are far stronger than anything Americans can organize, so they get whatever demand they put before our beloved Congress.

I also lay blame with our drug and medical equipment/supply companies who charge exorbant amounts to the US, then turn around and charge other countries a fraction of what we pay. I can't wrap my head around why we are so easily and so often taken advantage of as a country and our elected leaders do nothing...absolutely nothing about it. How about making some changes that will actually benefit us, the American people, for once? huh?

[holyghostie]

08:14 PM on 11/22/2011

We have the most inefficient costliest health system in the world.

[JackHoffman]

05:29 PM on 11/22/2011

The citizens of richest country on the planet have to go to online 'begging' sites to pay for health care. Shame.

[Catriona]

08:30 PM on 11/22/2011

Jack: I emigrated from the US some years ago. Just my luck that our European-owned and staffed company has quite a few important clients there in the Land of the Free. That means I usually end up flying across with European staff.

As we drive through small towns we often see hand-lettered signs on light posts, sides of buildings, any surface that will hold a sign, begging people to contribute baked goods to a fund raising for Bobby's new kidney, or Ron's new heart. It's amusing to see the staff, who come from places like Lithuania, Holland, Portugal, and Italy, sitting there rigid with shock, mouths open. They can't believe that the rich and powerful Americans have to bake cakes to keep their family members alive.