Facing a significant cash crunch, the Indian National Congress is reportedly set to revive its crowdfunding efforts, this time with a decentralized, district-level approach. The move comes after the party's initial foray into crowdfunding in late 2023 was hampered by Income Tax notices and account freezes, which severely impacted their ability to utilize the raised funds. This renewed focus on grassroots fundraising is also intended to complement the party's broader strategy of strengthening its organizational base at the local level.

The revamped crowdfunding plan involves creating dedicated pages for each district on the official party website. This would allow individuals to directly contribute to their respective district's Congress unit. This approach is a departure from the "Donate for Desh" campaign launched in December 2023, ahead of the 2024 parliamentary elections. While the initial campaign generated considerable buzz and garnered ₹25 crore from approximately 300,000 donors in a short period, the subsequent financial hurdles forced its abrupt discontinuation.

Under the new plan, funds raised within a district will be used to create a corpus fund. The Congress party plans to provide a matching amount to this fund. The interest generated from this corpus will then be used to finance organizational activities and programs at the district level. While donations will be directed to the All India Congress Committee (AICC) account due to legal requirements, the intent is to ensure that the funds are ultimately utilized for local initiatives.

This renewed focus on crowdfunding is particularly crucial for the Congress, which has faced increasing challenges in competing with the financial might of its political rivals. The earlier electoral bond scheme, which has since been scrapped, was perceived to disproportionately favor the ruling party, further exacerbating the funding disparity.

Several factors contribute to the increasing importance of grassroots fundraising in contemporary politics. Traditional methods of raising money from wealthy donors are now supplemented by digital platforms. Small-dollar donations can accumulate significantly. The constant political cycle requires year-round fundraising. Grassroots campaigns asking everyday supporters to contribute small amounts of money are becoming more critical. Innovative approaches such as rapid response fundraising texts and virtual events can boost engagement and generate more donations.

However, the Congress party must be mindful of the potential pitfalls of aggressive fundraising tactics. Some studies show that manipulative or emotionally charged appeals can alienate potential donors. It is important to create a culture of trust and shared purpose.

The success of this district-level crowdfunding initiative will depend on several factors, including effective communication, transparency in fund utilization, and active participation from local party workers. By empowering district units and fostering a sense of ownership among local donors, the Congress aims to create a sustainable fundraising model that can support its organizational activities and electoral prospects in the long run.