In an era of shrinking donor funding and mounting restrictions on civic space, crowdfunding has emerged as a lifeline for civil society—a digital bridge connecting communities, small organisations, and individuals directly to the resources they need.
Though often portrayed as a modern innovation, crowdfunding is the digital continuation of humanity’s age-old generosity: rallying to help a neighbour in need, responding to crises, and driving social change. Online platforms have given civil society organisations (CSOs) a streamlined, low-cost way to mobilise funds—whether for urgent medical treatment, grassroots activism, or environmental protection.
In North Macedonia, for example, the Op-Op platform, launched by the Association Konekt in 2024, is enabling local groups to expand access to social services, youth programmes, and community development projects. If its campaigns meet their targets, more than 90,000 citizens will benefit.
In Slovakia—where government pressure has sought to silence dissent—crowdfunding has even become an act of defiance. On the Donio platform, citizens raised funds for an independent news outlet and to support outspoken critics who lost their jobs for challenging authority.
But just as civil society is turning to crowdfunding, a regulatory storm is brewing.
Regulations Threaten a Vital Channel
While there is little concrete evidence that donation-based crowdfunding is used for money laundering or terrorism financing, governments and international bodies are moving to impose strict compliance rules. The EU’s new Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) package, adopted in May 2024, will classify all crowdfunding platforms as “obliged entities” from July 2027—on par with banks.
This means heavy requirements such as full “Know Your Customer” checks, costly monitoring systems, and reporting obligations—burdens that could be overwhelming for non-profit platforms set up solely for public benefit.
Globally, the trend is spreading. The UN Security Council has flagged crowdfunding as “vulnerable” to terrorist misuse, urging states to monitor platforms more closely. Authoritarian regimes are likely to seize on this as another tool to choke off civil society’s access to resources.
A Familiar Pattern of Financial Restriction
Civil society has seen this before. Over the past two decades, anti-money laundering and counter-terrorism financing measures have been used—sometimes unintentionally, sometimes deliberately—to restrict NGOs’ banking access, delay transfers, and block funding. Now crowdfunding platforms risk becoming the next casualty.
For CSOs already battling declining international aid and limits on foreign funding, losing affordable crowdfunding options could be devastating. Higher compliance costs will likely force platforms to raise fees, reducing donations and weakening grassroots capacity.
Defending the Right to Resource Mobilisation
Networks like the Global Coalition on FATF have worked for years to push for risk-based, evidence-driven regulations that protect legitimate civil society activity while meeting security objectives. But the fight is far from over.
The philanthropic community must stand with civil society to protect crowdfunding as a tool for public good. Without it, countless grassroots initiatives—from humanitarian relief to climate action—risk losing one of the few remaining independent funding channels.
The bottom line: Crowdfunding is not just about money—it is about voice, resilience, and the power of communities to sustain themselves. Overregulation risks silencing that power at a time when civil society needs it most.
