The following provision was passed at General Conference 2016 that tasks GCFA to provide guidance on crowdfunding websites and initiatives:

     "To provide guidance and consultation to churches, conferences and other United Methodist organizations on fundraising campaigns conducted via the Internet and social media where capital can be solicited from a large pool of potential donors, also known as crowd funding.  The GCFA shall prepare a list of approved crowd funding websites.  The consultation shall be limited to churches and conferences residing in the United States."

Crowdfunding (generally used as one word) is most commonly defined as the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet. Many burgeoning business owners and entrepreneurs utilize social media websites and social media to attract investors in their business ventures.

     Additionally, individuals can also utilize social media and crowdfunding websites to attract potential small donors to charitable ventures, such as schools, churches, and hospitals. Most crowdfunding websites do not have an approved list of charitable projects, and they generally do not supply guarantees that the charitable project is going to a recognized 501(c)(3) organization.

     Unfortunately, the openness and lack of accountability of many charitable requests through crowdfunding websites and social media campaigns provide an open market for those who wish to deceive and misrepresent their intentions.  

     Registered charitable organizations protect donors through audited financial statements, and voluntary standards. At this point, the Better Business Bureau has stated that the level of accountability needs to grow to improve donor confidence and trust in crowdfunding sites and recommends giving through registered 501(c)(3) organizations.