Campaign Failure/Shortfall Policy

Module: CrowdFunding (UTSAV DAAN™)
Document Type: Hybrid — Plain English + Legal Reinforcement
Trademark: UTSAV DAAN™ is a trademark of MyMahotsav Futuretech Ltd
Jurisdictions: Global (with jurisdictional addenda)
Version: 1.0
Effective Date: 25th February, 2026

PART A: PLAIN ENGLISH SUMMARY #

What Happens When Campaigns Don’t Reach Their Goal #

Not every Campaign succeeds. This policy explains what happens when a Campaign falls short of its target or fails.

The Simple Truth #

• Two Campaign models: Fundraisers choose either “All-or-Nothing” (refund if target not met) or “Keep-What-You-Raise” (funds kept regardless).

• Transparency at donation: You’ll always know which model applies before you donate.

• Shortfall options: If a Campaign doesn’t meet its goal, Fundraisers can explain alternative plans.

• Refunds were promised: All-or-Nothing campaigns automatically refund donors.

• Funds remain protected: Until decisions are made, money stays in escrow.

• No pressure tactics: We don’t allow Fundraisers to pressure donors into accepting shortfalls against their will.

PART B: LEGAL TERMS AND CONDITIONS #

1. Campaign MODELS #

1.1 All-or-Nothing (Fixed Target) Model #

Definition: Funds are only released to the Beneficiary if the Campaign reaches or exceeds its Target Amount by the End Date.

Characteristics:

• Higher donor confidence (funds are only used if the goal is achieved)

• Refund guarantee if the target is not met

• Recommended for specific, time-bound projects

Disclosure: Clearly marked “ALL-OR-NOTHING” on Campaign page.

1.2 Keep-What-You-Raise (Flexible Target) Model #

Definition: Funds are released to the Beneficiary regardless of whether the Target Amount is achieved, subject to other conditions.

Characteristics:

• Suitable for ongoing needs, partial funding is useful

• Donors understand partial funding may limit outcomes

• The Fundraiser must explain how partial funds will be used

Disclosure: Clearly marked “KEEP-WHAT-YOU-RAISE” on Campaign page.

1.3 Hybrid Model (UTSAV DAAN™ Custom) #

Definition: Funds are released if the Campaign reaches the Minimum Threshold (e.g., 50% of Target); otherwise, All-or-Nothing applies.

Characteristics:

• Balances donor protection with Fundraiser flexibility

• Minimum threshold disclosed at launch

• Rare, requires special approval

2. PRE-Campaign DISCLOSURES #

2.1 Before donating, Contributors see:

• Campaign model (All-or-Nothing / Keep-What-You-Raise)

• Target Amount

• Current amount raised

• End Date

• Shortfall plan (how partial funds would be used)

2.2 Fundraisers must include in the Campaign description:

• Minimum viable funding threshold (if applicable)

• Specific use of funds at different funding levels

• What happens if the target is not reached

• Refund policy for their Campaign (must align with Platform Policy)

3. Campaign FAILURE SCENARIOS #

3.1 All-or-Nothing Campaign Below Target #

Scenario: Campaign ends with total raised < Target Amount

Consequences:

Refund Timeline: Within [10] business days of Campaign end.

Notification: Contributors receive an email explaining failure and refund status.

3.2 Keep-What-You-Raise Campaign Below Target #

Scenario: Campaign ends with total raised < Target Amount

Consequences:

Disbursement Condition: Fundraiser must confirm in writing how partial funds will be used, consistent with pre-Campaign disclosure.

3.3 Campaign With Zero Funds #

Scenario: Campaign ends with no Contributions

Consequences:

• No action required

• Campaign closed

• Fundraiser may create a new Campaign

4. SHORTFALL COMMUNICATION AND ACCOUNTABILITY #

4.1 Fundraiser Obligations (Keep-What-You-Raise) #

Within [7] days of Campaign end below target, the Fundraiser must:

• Post public update acknowledging shortfall

• Restate how partial funds will be used

• Adjust project timeline if necessary

• Commit to enhanced reporting

• Respond to donor questions within [5] days

4.2 Donor Rights in Shortfall #

Donors to shortfall campaigns may:

• Ask questions via Campaign Q&A

• Request specific information on fund usage

• Flag concerns if funds are used inconsistently with the shortfall plan

• Report misuse to Platform

4.3 Platform Monitoring #

UTSAV DAAN™ monitors shortfall campaigns for:

• Fund utilization consistent with disclosure

• Timely updates

• Donor complaint patterns

• Red flags indicating potential misuse

5. PARTIAL SUCCESS AND SCALED DELIVERY #

5.1 Where Keep-What-You-Raise campaigns fall short, Fundraiser may scale project scope accordingly.

Example:

• Target: ₹10 lakh for temple renovation

• Raised: ₹4 lakh

• Scaled plan: Phase 1 (gopura renovation only) instead of full renovation

5.2 Fundraiser must document scaled delivery and provide an updated timeline.

5.3 Significant deviation from original purpose (even if scaled) requires donor consultation.

6. OVERFUNDING (EXCEEDING TARGET) #

6.1 Overfunding Scenarios #

6.2 Overfunding Plan Requirement #

6.2.1 Fundraisers must disclose in advance:

• How overfunding will be used

• Maximum capacity for additional funds

• Whether stretch goals exist

6.2.2 If no overfunding plan is disclosed, excess funds must be used for a substantially similar purpose.

6.2.3 Significant change of use for overfunding requires donor consultation/refund option.

7. Campaign EXTENSION AND RESTART #

7.1 Extension Requests #

Fundraisers may request an extension (up to [30] days) if:

• The Campaign has reasonable momentum

• No donor complaints received

• Transparent communication provided

• Platform approves

Extension disclosure: All donors were notified of the extension.

7.2 Campaign Restart #

Failed campaigns may restart if:

• Fundraiser provides an improved plan

• Target adjusted based on learnings

• New Support Group formed

• Enhanced documentation provided

Restart waiting period: [30] days between failure and restart.

8. DONOR OPTIONS UPON FAILURE/SHORTFALL #

8.1 All-or-Nothing Failure #

• Automatic refund (default)

• Donor may waive refund and donate directly to Fundraiser (off-platform, not recommended)

• The donor may request funds transferred to a different Campaign (subject to Fundraiser agreement)

8.2 Keep-What-You-Raise Shortfall #

• No automatic refund

• The donor may request a refund only if:

  • Material change in the use of funds

  • Fundraiser fails to provide a shortfall plan

  • Evidence of misrepresentation

 PART C: JURISDICTION-SPECIFIC ADDENDUMS #

INDIA ADDENDUM #

Consumer Protection: Shortfall campaigns must honour disclosed use of funds. Failure may constitutean  unfair trade practice.

Contract Law: Donation constitutes a conditional gift based on Campaign representations.

UK ADDENDUM #

Charity Commission Guidance: Charities must report significant shortfalls and revised plans.

Fundraising Regulator: Code requires transparent communication on shortfalls.

EU ADDENDUM #

Consumer Rights: Shortfall disclosure is material information for consumer decision-making.

US ADDENDUM #

State Oversight: Some states require professional fundraisers to report funds raised vs. target.

PART D: ENTERPRISE INTERNAL MANUAL #

For UTSAV DAAN™ Campaign Management Team #

A. Failure/Shortfall Workflow #

B. Shortfall Plan Review Checklist #

• The plan clearly explains the use of partial funds

• Plan aligns with the original Campaign purpose

• Timeline adjusted realistically

• Donor Q&A monitored for concerns

• No material change requiring refunds

C. Donor Communication Templates #

All-or-Nothing Failure Email:

Subject: Update on [Campaign Name] — Campaign Did Not Reach Target

Dear Contributor,

Unfortunately, [Campaign Name] ended on [Date] without reaching its fundraising target of [Target Amount].

As this was an All-or-Nothing Campaign, your donation of [Amount] will be automatically refunded. Refunds typically process within 5-10 business days and will be credited to your original payment method.

The Fundraiser may launch a revised Campaign in the future. You are under no obligation to contribute again.

Thank you for your support.

— UTSAV DAAN™ Team

Keep-What-You-Raise Shortfall Notification:

Subject: Update on [Campaign Name] — Campaign Closed Below Target

Dear Contributor,

[Campaign Name] ended on [Date] raising [Amount] — [X]% of its [Target] goal.

The Fundraiser has committed to using these funds for [shortfall plan summary]. You can view the full plan on the Campaign page.

If you have questions about how your donation will be used, please post them on the Campaign Q&A.

Thank you for your generosity.

— UTSAV DAAN™ Team