LocationsUnlocking the power of crowdfunding with the Moldovan municipalities
November 11, 2024
Workshop within the Crowdfunding Academy, April 2024
Ten municipalities in Moldova joined a crowdfunding training programme to gain skills in creating and running effective crowdfunding campaigns for local projects.
When one thinks of Moldova, the country's expansive vineyards, historic wine cellars and rural tourism often come to mind. Yet beyond its rich winemaking tradition and charming rural traditional guesthouses, a quieter but equally significant transformation is taking place.
Moldovan municipalities are increasingly adopting innovative strategies for urban development. A driving force behind this shift is the Mayors for Economic Growth (M4EG) programme, a joint initiative by the European Union and the United Nations Development Programme (UNDP) aimed at fostering inclusive economic growth and vibrant communities across Eastern Partnership countries.
Can crowdfunding bridge the funding gap?
For most municipalities, development partners’ and government funding have traditionally served as the primary financial lifeline. Yet when asked about their greatest hurdles, local authorities frequently cite difficulties in resource mobilization and forging partnerships. This is where crowdfunding can be offered as an alternative funding solution.
Crowdfunding or in the case of municipalities “civil crowdfunding” refers to raising funds from individuals, diaspora communities, and the private sector to finance projects led by local governments, NGOs, or community groups.
While crowdfunding has become normal in the startup world and among civil society organizations, local authorities in the region are just beginning to tap into its potential. Crowdfunding offers not only a means to generate funding but also an opportunity to engage the community and raise awareness on critical issues. Despite its advantages, it remains an underutilized resource for municipalities seeking to bring their project ideas to life.
Crowdfunding success
Earlier this year, 10 municipalities in Moldova participated in a UNDP-led Crowdfunding Academy, as part of the M4EG programme, funded by the European Union. The training programme equips local authorities with the knowledge and tools to design and execute successful crowdfunding campaigns. Project ideas from municipalities ranged from rebuilding green spaces and improving playgrounds to waste management initiatives and repairing church roads. Over the course of a two-day, in-person workshop and online mentorship, municipalities had an opportunity to work with international crowdfunding experts on compelling storytelling techniques, partnership building, resource mobilization, and strategic communication.
One of the first successful campaigns was launched by the city of Anenii Noi. Their campaign, Sports Ground – A Place for Inclusive and Fun Interaction for Parents and Children, aimed to create an inclusive playground for all children at the Andrieș kindergarten, including children from refugee families from Ukraine. Through the campaign, they raised nearly $ 3,000, and additionally received financial contributions from the Moldovan government, and other development partners, and from Anenii Noi’s City Hall for the project’s implementation offered within the 2024 edition of the National Program Diaspora Succeeds at Home (DAR 1+3). The respective programme was designed based on UNDP and Switzerland model of channeling diaspora contribution to local community development).
“It was our first crowdfunding campaign, but thanks to the knowledge acquired in the Crowdfunding Academy, we were able to apply it in practice and we managed to realize our project successfully. Achieving such beautiful results motivates us to implement other projects via crowdfunding.”Olga Albu, project specialist, City of Anenii Noi
In Strășeni Municipality, a successful crowdfunding campaign raised $5,100 to install city signs at the entrance and exit of Strășeni and the village of Făgureni, marking yet another win for community-driven funding efforts.
Crowdfunding also fosters community engagement. In the city of Ungheni, a campaign to build a shelter for stray dogs has mobilized local support through creative events, such as a charity raffle and a screening of the film Hachi: A Dog's Tale. Although still ongoing, the campaign has already raised 40% of its funding goal, demonstrating the strong impact of local involvement.
“The Crowdfunding Academy gave us a great opportunity to strengthen our knowledge and develop new skills to involve the community in solving a problem. The wonderful trainers guided us to run crowdfunding campaigns in our localities and implement projects that benefit the citizens. We learned that only through involvement and joint efforts can we bring positive changes to our localities." - Ina Olearciuc, Investment Attraction Specialist, City of Ungheni.
More municipalities from the Crowdfunding Academy in Moldova are gearing up to launch their crowdfunding campaigns, highlighting that crowdfunding is about much more than financial support – it's also about building stronger, more involved communities. These initiatives, led by Moldovan municipalities, are proving that alternative funding methods, such as crowdfunding, can drive local development as well as community engagement.
Crowdfunding: from charity to development approach
Crowdfunding for development is a new outlook of this tool, piloted for the first time in Moldova by UNDP in 2015. During 2015 – 2022, UNDP and the Government of Switzerland provided support to 83 Hometown Associations to conduct dedicated campaigns, which attracted a total of $339,000 from more than 12,000 contributors, both locals and diaspora, funding projects that directly impacted the quality of life, economic stability, and environmental sustainability in their communities. The focus areas were the revitalization of public infrastructure, the lifecycle of construction and repair works, and the organization of waste management services etc.
This shift marked the evolution of crowdfunding in Moldova, moving from traditional charity campaigns, which were already common and familiar to the Moldovan public, to more sustainable development crowdfunding. Unlike charity crowdfunding, which typically seeks donations for immediate assistance or relief, development crowdfunding provides long-term investments with a focus on community growth and resilience.
Access here the UNDP Moldova guide about online instruments of fundraising.
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