I have written about crowdfunding and B (benefit) companies. I even have a few clients that are considering the marriage of the two concepts. And, while these clients are getting their ducks in a row, folks in my home town are already picking the ball up and running with it.
My office used to be in an area of Alexandria called Arlandria. It is the cross-border region between Alexandria and Arlington, two communities in Northern Virginia across the river from DC. (Actually, if you recall your history, these two communities were really part of the District of Columbia, which is why DC is officially called Washington, DC. Because the Virginia portions were known as Alexandria, DC way back when.)
The Arlandria region used to be prone to floods and, therefore, home to lots of the poorer folk in town. But, since the flooding was fixed (by rerouting and upgrading the Four Mile Run tributary to the Potomac River), part of the area became a park, the Four Mile Run Park.
Some of the folks who are living near that park want it to be nicer than it is; they want to spruce it up with a few new trees (pun intended). To do so, they are using crowfunding. Which is a good thing, since the city is not spending any current money to improve the parks. (You know the scenario- we’d love to do so, but we don’t have any money…) Without taxpayer funding, the only way these improvements will occur is via crowdfunding or finding a benefactor to provide the funds needed for the effort.
Kevin Beekman, an Arlandria resident, is one such activist. He is marshalling the resources of Citizinvestor, in a project termed the 4mr-park-fall-tree-planting (as in 4 Mile Run). Right now, these seems to be only two investors, but this is a brand new project.
One of the key factors that this project includes is providing specific uses for the funds they intend to be raised. Instead of collecting money for a general park fund- even one dedicated to the 4 Mile Run park, the goal of the effort is to raise money specifically for the tree plantings.
But, it’s not just a bed of roses. (Yes, I am having fun writing this blog post). No, to get the project on the Citizinvestor site, it is critical that the project have the blessing of the city (the fore-mentioned Alexandria, VA). This allows the website (as a partnership with the local municipality) to yield residents tax deductible donations, which are then employed toward specific undertakings. This specific project needs to be funded by September 3, 2014. If the goal is not met, escrow is not broken, and the donations are either not collected or returned to the individuals who donated them.
Four Mile Run Park’s community group raised $380 to fund the project’s first phase and is now $200 into the second phase. They are marshaling the assistance of some local nonprofits; they are also collecting funds from the farmer’s market that is held weekly in and by the park. The ultimate concept is to have 13 new trees planted by this fall.
This is a first for Alexandria, where the citizenry, the local government, and Citizinvestor work together to achieve a community goal. Let’s hope it succeeds- because there are plenty of other needs in the community- and across the US and the rest of the world.
I always wonder, with initiatives like this one, if you’re not creating a vicious circle in terms of government funding. Government decision-makers can’t or won’t provide the money, so the taxpayers come up with some other way to fund it. So the government, next time something needs doing, is led to think that it doesn’t need to provide the funding because the citizens will do it for them. The same goes, for example, with parents raising money for programs at schools. The more that happens, the less money gets budgeted to schools. What do you think?
Rachel recently posted..Thoughts on Petra
Rachel:
I am absolutely in agreement with you. But, there may be a reason for this- if the localities work properly. (OK, I know that’s a pipe-dream.)
Let’s say the city (or county) has 100 projects. But, only has enough money for 82 of them. I may not want to wait (or my choice may always be too low on the totem pole) for city funding.
For example, there was a small empty lot near my house. We wanted it to be a park for the kids. (Not mine; they were already teens- this was to be for tots.) The cost was expected to run $ 139K, but the city determined only about a dozen kids would use it on average. And, that put it low on the totem pole for the city. (Perfectly understandable, when the other parks needed new equipment and were used by 50, 75, or 100 kids on average.) WE came up with the funds, so that the kids would have a place to go near their home.
Good point. The question is where the local government draws that line, and how the line shifts!
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I wish it were a clean concept, Rachel. Thanks for the great dialogue!
This is a pretty cool project, Roy. I hope it works, too!
Amy recently posted..How to shuck sweet corn–fast!–from an ole’ pro
Me, too, but as you saw from my answer/discussion with Rachel, I have reservations.
I am just curious. Why would you render a comment that is totally unrelated to the post?