{"id":3295,"date":"2026-02-25T23:51:14","date_gmt":"2026-02-25T23:51:14","guid":{"rendered":"https:\/\/mymahotsav.com\/knowledgebase\/?post_type=docs&p=3295"},"modified":"2026-02-25T23:55:15","modified_gmt":"2026-02-25T23:55:15","password":"","slug":"crowdfunding-campaign-failure-shortfall-policy","status":"publish","type":"docs","link":"https:\/\/mymahotsav.com\/knowledgebase\/docs\/policy-hub\/crowdfundings\/crowdfunding-campaign-failure-shortfall-policy\/","title":{"rendered":"Campaign Failure\/Shortfall Policy"},"content":{"rendered":"

Module:<\/strong> CrowdFunding (Utsav daan\u2122)
\nDocument Type:<\/strong>\u00a0Hybrid \u2014 Plain English + Legal Reinforcement
\nTrademark:<\/strong> UTSAV DAAN\u2122 is a trademark of MyMahotsav Futuretech Ltd
\nJurisdictions:<\/strong> Global (with jurisdictional addenda)
\nVersion:<\/strong>\u00a01.0
\nEffective Date:<\/strong> 25th February, 2026<\/p>\n

\n

 <\/p>\n

PART A: PLAIN ENGLISH SUMMARY<\/h2>\n

What Happens When Campaigns Don’t Reach Their Goal<\/h3>\n

Not every campaign succeeds. This policy explains what happens when a campaign falls short of its target or fails.<\/p>\n

The Simple Truth<\/h3>\n
    \n
  • \n

    Two campaign models<\/strong>: Fundraisers choose either “All-or-Nothing” (refund if target not met) or “Keep-What-You-Raise” (funds kept regardless).<\/p>\n<\/li>\n

  • \n

    Transparency at donation<\/strong>: You’ll always know which model applies before you donate.<\/p>\n<\/li>\n

  • \n

    Shortfall options<\/strong>: If a campaign doesn’t meet its goal, Fundraisers can explain alternative plans.<\/p>\n<\/li>\n

  • \n

    Refunds were promised<\/strong>: All-or-Nothing campaigns automatically refund donors.<\/p>\n<\/li>\n

  • \n

    Funds remain protected<\/strong>: Until decisions are made, money stays in escrow.<\/p>\n<\/li>\n

  • \n

    No pressure tactics<\/strong>: We don’t allow Fundraisers to pressure donors into accepting shortfalls against their will.<\/p>\n<\/li>\n<\/ul>\n

    \n

     <\/p>\n

    PART B: LEGAL TERMS AND CONDITIONS<\/h2>\n

    1. CAMPAIGN MODELS<\/h3>\n

    1.1 All-or-Nothing (Fixed Target) Model<\/h4>\n

    Definition<\/strong>: Funds are only released to the Beneficiary if the Campaign reaches or exceeds its Target Amount by the End Date.<\/p>\n

    Characteristics<\/strong>:<\/p>\n

      \n
    • \n

      Higher donor confidence (funds are only used if the goal is achieved)<\/p>\n<\/li>\n

    • \n

      Refund guarantee if the target is not met<\/p>\n<\/li>\n

    • \n

      Recommended for specific, time-bound projects<\/p>\n<\/li>\n<\/ul>\n

      Disclosure<\/strong>: Clearly marked “ALL-OR-NOTHING” on Campaign page.<\/p>\n

      1.2 Keep-What-You-Raise (Flexible Target) Model<\/h4>\n

      Definition<\/strong>: Funds are released to the Beneficiary regardless of whether the Target Amount is achieved, subject to other conditions.<\/p>\n

      Characteristics<\/strong>:<\/p>\n

        \n
      • \n

        Suitable for ongoing needs, partial funding is useful<\/p>\n<\/li>\n

      • \n

        Donors understand partial funding may limit outcomes<\/p>\n<\/li>\n

      • \n

        The fundraiser must explain how partial funds will be used<\/p>\n<\/li>\n<\/ul>\n

        Disclosure<\/strong>: Clearly marked “KEEP-WHAT-YOU-RAISE” on Campaign page.<\/p>\n

        1.3 Hybrid Model (UTSAV DAAN\u2122 Custom)<\/h4>\n

        Definition<\/strong>: Funds are released if the campaign reaches the Minimum Threshold<\/strong> (e.g., 50% of Target); otherwise, All-or-Nothing applies.<\/p>\n

        Characteristics<\/strong>:<\/p>\n

          \n
        • \n

          Balances donor protection with fundraiser flexibility<\/p>\n<\/li>\n

        • \n

          Minimum threshold disclosed at launch<\/p>\n<\/li>\n

        • \n

          Rare, requires special approval<\/p>\n<\/li>\n<\/ul>\n

          \n

          2. PRE-CAMPAIGN DISCLOSURES<\/h3>\n

          2.1<\/strong>\u00a0Before donating, Contributors see:<\/p>\n

            \n
          • \n

            Campaign model (All-or-Nothing \/ Keep-What-You-Raise)<\/p>\n<\/li>\n

          • \n

            Target Amount<\/p>\n<\/li>\n

          • \n

            Current amount raised<\/p>\n<\/li>\n

          • \n

            End Date<\/p>\n<\/li>\n

          • \n

            Shortfall plan (how partial funds would be used)<\/p>\n<\/li>\n<\/ul>\n

            2.2<\/strong> Fundraisers must include in the campaign description:<\/p>\n

              \n
            • \n

              Minimum viable funding threshold (if applicable)<\/p>\n<\/li>\n

            • \n

              Specific use of funds at different funding levels<\/p>\n<\/li>\n

            • \n

              What happens if the target is not reached<\/p>\n<\/li>\n

            • \n

              Refund policy for their campaign (must align with Platform Policy)<\/p>\n<\/li>\n<\/ul>\n

              \n

              3. CAMPAIGN FAILURE SCENARIOS<\/h3>\n

              3.1 All-or-Nothing Campaign Below Target<\/h4>\n

              Scenario<\/strong>: Campaign ends with total raised < Target Amount<\/p>\n

              Consequences<\/strong>:<\/p>\n

              \n
              \n
              <\/div>\n
              <\/div>\n<\/div>\n\n\n\n\n\n\n\n\n\n
              Aspect<\/th>\nOutcome<\/th>\n<\/tr>\n<\/thead>\n
              Funds<\/strong><\/td>\nNot released to Beneficiary<\/td>\n<\/tr>\n
              Refunds<\/strong><\/td>\nAutomatic refunds processed to all Contributors<\/td>\n<\/tr>\n
              Fees<\/strong><\/td>\nGateway fees may be deducted (non-recoverable from processors)<\/td>\n<\/tr>\n
              Platform Fee<\/strong><\/td>\nNot charged (no successful campaign)<\/td>\n<\/tr>\n
              Future Campaigns<\/strong><\/td>\nFundraiser may launch new campaign with adjusted target<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

              Refund Timeline<\/strong>: Within [10] business days of campaign end.<\/p>\n

              Notification<\/strong>: Contributors receive an email explaining failure and refund status.<\/p>\n

              3.2 Keep-What-You-Raise Campaign Below Target<\/h4>\n

              Scenario<\/strong>: Campaign ends with total raised < Target Amount<\/p>\n

              Consequences<\/strong>:<\/p>\n

              \n
              \n
              <\/div>\n
              <\/div>\n<\/div>\n\n\n\n\n\n\n\n\n
              Aspect<\/th>\nOutcome<\/th>\n<\/tr>\n<\/thead>\n
              Funds<\/strong><\/td>\nReleased to the beneficiary after verification<\/td>\n<\/tr>\n
              Disbursement<\/strong><\/td>\nNet Proceeds (fees deducted) transferred<\/td>\n<\/tr>\n
              Shortfall Plan<\/strong><\/td>\nFundraiser must execute per disclosure<\/td>\n<\/tr>\n
              Contributor Rights<\/strong><\/td>\nNo refund unless a material change or fraud<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

              Disbursement Condition<\/strong>: Fundraiser must confirm in writing how partial funds will be used, consistent with pre-campaign disclosure.<\/p>\n

              3.3 Campaign With Zero Funds<\/h4>\n

              Scenario<\/strong>: Campaign ends with no Contributions<\/p>\n

              Consequences<\/strong>:<\/p>\n

                \n
              • \n

                No action required<\/p>\n<\/li>\n

              • \n

                Campaign closed<\/p>\n<\/li>\n

              • \n

                Fundraiser may create a new campaign<\/p>\n<\/li>\n<\/ul>\n

                \n

                4. SHORTFALL COMMUNICATION AND ACCOUNTABILITY<\/h3>\n

                4.1 Fundraiser Obligations (Keep-What-You-Raise)<\/h4>\n

                Within [7] days of campaign end below target, the Fundraiser must:<\/p>\n

                  \n
                • \n

                  Post public update acknowledging shortfall<\/p>\n<\/li>\n

                • \n

                  Restate how partial funds will be used<\/p>\n<\/li>\n

                • \n

                  Adjust project timeline if necessary<\/p>\n<\/li>\n

                • \n

                  Commit to enhanced reporting<\/p>\n<\/li>\n

                • \n

                  Respond to donor questions within [5] days<\/p>\n<\/li>\n<\/ul>\n

                  4.2 Donor Rights in Shortfall<\/h4>\n

                  Donors to shortfall campaigns may:<\/p>\n

                    \n
                  • \n

                    Ask questions via Campaign Q&A<\/p>\n<\/li>\n

                  • \n

                    Request specific information on fund usage<\/p>\n<\/li>\n

                  • \n

                    Flag concerns if funds are used inconsistently with the shortfall plan<\/p>\n<\/li>\n

                  • \n

                    Report misuse to Platform<\/p>\n<\/li>\n<\/ul>\n

                    4.3 Platform Monitoring<\/h4>\n

                    UTSAV DAAN\u2122 monitors shortfall campaigns for:<\/p>\n

                      \n
                    • \n

                      Fund utilization consistent with disclosure<\/p>\n<\/li>\n

                    • \n

                      Timely updates<\/p>\n<\/li>\n

                    • \n

                      Donor complaint patterns<\/p>\n<\/li>\n

                    • \n

                      Red flags indicating potential misuse<\/p>\n<\/li>\n<\/ul>\n

                      \n

                      5. PARTIAL SUCCESS AND SCALED DELIVERY<\/h3>\n

                      5.1<\/strong>\u00a0Where Keep-What-You-Raise campaigns fall short, Fundraiser may scale project scope accordingly.<\/p>\n

                      Example<\/strong>:<\/p>\n

                        \n
                      • \n

                        Target: \u20b910 lakh for temple renovation<\/p>\n<\/li>\n

                      • \n

                        Raised: \u20b94 lakh<\/p>\n<\/li>\n

                      • \n

                        Scaled plan: Phase 1 (gopura renovation only) instead of full renovation<\/p>\n<\/li>\n<\/ul>\n

                        5.2<\/strong> Fundraiser must document scaled delivery and provide an updated timeline.<\/p>\n

                        5.3<\/strong>\u00a0Significant deviation from original purpose (even if scaled) requires donor consultation.<\/p>\n

                        \n

                        6. OVERFUNDING (EXCEEDING TARGET)<\/h3>\n

                        6.1 Overfunding Scenarios<\/h4>\n
                        \n
                        \n
                        <\/div>\n
                        <\/div>\n<\/div>\n\n\n\n\n\n\n
                        Campaign Model<\/th>\nOverfunding Treatment<\/th>\n<\/tr>\n<\/thead>\n
                        All-or-Nothing<\/td>\nAll funds released (platform fees apply to the total)<\/td>\n<\/tr>\n
                        Keep-What-You-Raise<\/td>\nAll funds released<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

                        6.2 Overfunding Plan Requirement<\/h4>\n

                        6.2.1<\/strong>\u00a0Fundraisers must disclose in advance:<\/p>\n

                          \n
                        • \n

                          How overfunding will be used<\/p>\n<\/li>\n

                        • \n

                          Maximum capacity for additional funds<\/p>\n<\/li>\n

                        • \n

                          Whether stretch goals exist<\/p>\n<\/li>\n<\/ul>\n

                          6.2.2<\/strong> If no overfunding plan is disclosed, excess funds must be used for a substantially similar purpose.<\/p>\n

                          6.2.3<\/strong>\u00a0Significant change of use for overfunding requires donor consultation\/refund option.<\/p>\n

                          \n

                          7. CAMPAIGN EXTENSION AND RESTART<\/h3>\n

                          7.1 Extension Requests<\/h4>\n

                          Fundraisers may request an extension (up to [30] days) if:<\/p>\n

                            \n
                          • \n

                            The campaign has reasonable momentum<\/p>\n<\/li>\n

                          • \n

                            No donor complaints received<\/p>\n<\/li>\n

                          • \n

                            Transparent communication provided<\/p>\n<\/li>\n

                          • \n

                            Platform approves<\/p>\n<\/li>\n<\/ul>\n

                            Extension disclosure<\/strong>: All donors were notified of the extension.<\/p>\n

                            7.2 Campaign Restart<\/h4>\n

                            Failed campaigns may restart if:<\/p>\n

                              \n
                            • \n

                              Fundraiser provides an improved plan<\/p>\n<\/li>\n

                            • \n

                              Target adjusted based on learnings<\/p>\n<\/li>\n

                            • \n

                              New Support Group formed<\/p>\n<\/li>\n

                            • \n

                              Enhanced documentation provided<\/p>\n<\/li>\n<\/ul>\n

                              Restart waiting period<\/strong>: [30] days between failure and restart.<\/p>\n

                              \n

                              8. DONOR OPTIONS UPON FAILURE\/SHORTFALL<\/h3>\n

                              8.1 All-or-Nothing Failure<\/h4>\n
                                \n
                              • \n

                                Automatic refund (default)<\/p>\n<\/li>\n

                              • \n

                                Donor may waive refund and donate directly to Fundraiser (off-platform, not recommended)<\/p>\n<\/li>\n

                              • \n

                                The donor may request funds transferred to a different campaign (subject to Fundraiser agreement)<\/p>\n<\/li>\n<\/ul>\n

                                8.2 Keep-What-You-Raise Shortfall<\/h4>\n
                                  \n
                                • \n

                                  No automatic refund<\/p>\n<\/li>\n

                                • \n

                                  The donor may request a refund only if:<\/p>\n

                                    \n
                                  • \n

                                    Material change in the use of funds<\/p>\n<\/li>\n

                                  • \n

                                    Fundraiser fails to provide a shortfall plan<\/p>\n<\/li>\n

                                  • \n

                                    Evidence of misrepresentation<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

                                    \n

                                     <\/p>\n

                                    \u00a0PART C: JURISDICTION-SPECIFIC ADDENDUMS<\/h2>\n

                                    INDIA ADDENDUM<\/h3>\n

                                    Consumer Protection<\/strong>: Shortfall campaigns must honour disclosed use of funds. Failure may constitutean\u00a0 unfair trade practice.<\/p>\n

                                    Contract Law<\/strong>: Donation constitutes a conditional gift based on campaign representations.<\/p>\n

                                    UK ADDENDUM<\/h3>\n

                                    Charity Commission Guidance<\/strong>: Charities must report significant shortfalls and revised plans.<\/p>\n

                                    Fundraising Regulator<\/strong>: Code requires transparent communication on shortfalls.<\/p>\n

                                    EU ADDENDUM<\/h3>\n

                                    Consumer Rights<\/strong>: Shortfall disclosure is material information for consumer decision-making.<\/p>\n

                                    US ADDENDUM<\/h3>\n

                                    State Oversight<\/strong>: Some states require professional fundraisers to report funds raised vs. target.<\/p>\n

                                    \n

                                     <\/p>\n

                                    PART D: ENTERPRISE INTERNAL MANUAL<\/h2>\n

                                    For UTSAV DAAN\u2122 Campaign Management Team<\/h3>\n

                                    A. Failure\/Shortfall Workflow<\/h4>\n
                                    \n
                                    \n
                                    <\/div>\n
                                    <\/div>\n<\/div>\n\n\n\n\n\n\n\n\n
                                    Campaign End Status<\/th>\nAction<\/th>\nOwner<\/th>\nSLA<\/th>\n<\/tr>\n<\/thead>\n
                                    All-or-Nothing < Target<\/td>\nInitiate refund batch<\/td>\nFinance<\/td>\n2 days<\/td>\n<\/tr>\n
                                    Keep-What-You-Raise < Target<\/td>\nRequest a shortfall plan<\/td>\nCampaign Manager<\/td>\n7 days<\/td>\n<\/tr>\n
                                    Zero funds<\/td>\nArchive campaign<\/td>\nSystem<\/td>\nAuto<\/td>\n<\/tr>\n
                                    Overfunding > 120%<\/td>\nVerify overage plan<\/td>\nCompliance<\/td>\n5 days<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

                                    B. Shortfall Plan Review Checklist<\/h4>\n
                                      \n
                                    • \n

                                      The plan clearly explains the use of partial funds<\/p>\n<\/li>\n

                                    • \n

                                      Plan aligns with the original campaign purpose<\/p>\n<\/li>\n

                                    • \n

                                      Timeline adjusted realistically<\/p>\n<\/li>\n

                                    • \n

                                      Donor Q&A monitored for concerns<\/p>\n<\/li>\n

                                    • \n

                                      No material change requiring refunds<\/p>\n<\/li>\n<\/ul>\n

                                      C. Donor Communication Templates<\/h4>\n

                                      All-or-Nothing Failure Email<\/strong>:<\/p>\n

                                      \n
                                      \n
                                      \n
                                      \n
                                      text<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n
                                      Subject: Update on [Campaign Name] \u2014 Campaign Did Not Reach Target\r\n\r\nDear Contributor,\r\n\r\nUnfortunately, [Campaign Name] ended on [Date] without reaching its fundraising target of [Target Amount].\r\n\r\nAs 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.\r\n\r\nThe Fundraiser may launch a revised campaign in the future. You are under no obligation to contribute again.\r\n\r\nThank you for your support.\r\n\r\n\u2014 UTSAV DAAN\u2122 Team<\/pre>\n<\/div>\n
                                      Keep-What-You-Raise Shortfall Notification<\/strong>:<\/p>\n
                                      \n
                                      \n
                                      \n
                                      \n
                                      text<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n
                                      Subject: Update on [Campaign Name] \u2014 Campaign Closed Below Target\r\n\r\nDear Contributor,\r\n\r\n[Campaign Name] ended on [Date] raising [Amount] \u2014 [X]% of its [Target] goal.\r\n\r\nThe Fundraiser has committed to using these funds for [shortfall plan summary]. You can view the full plan on the Campaign page.\r\n\r\nIf you have questions about how your donation will be used, please post them on the Campaign Q&A.\r\n\r\nThank you for your generosity.\r\n\r\n\u2014 UTSAV DAAN\u2122 Team<\/pre>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
                                      Module: CrowdFunding (Utsav daan\u2122) Document Type:\u00a0Hybrid \u2014 Plain English + Legal Reinforcement Trademark: UTSAV DAAN\u2122 is a trademark of MyMahotsav Futuretech Ltd Jurisdictions: Global (with…<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"footnotes":""},"doc_category":[211],"glossaries":[],"doc_tag":[240,31],"knowledge_base":[199],"class_list":["post-3295","docs","type-docs","status-publish","hentry","doc_category-crowdfundings","doc_tag-guideline","doc_tag-policy","knowledge_base-policy-hub"],"year_month":"2026-04","word_count":1236,"total_views":"73","reactions":{"happy":"0","normal":"0","sad":"0"},"author_info":{"name":"MyMahotsav Admin","author_nicename":"support-team","author_url":"https:\/\/mymahotsav.com\/knowledgebase\/author\/support-team\/"},"doc_category_info":[{"term_name":"CrowdFundings","term_url":"https:\/\/mymahotsav.com\/knowledgebase\/docs\/mm-guides\/crowdfundings\/"}],"doc_tag_info":[{"term_name":"Guideline","term_url":"https:\/\/mymahotsav.com\/knowledgebase\/docs-tag\/guideline\/"},{"term_name":"Policy","term_url":"https:\/\/mymahotsav.com\/knowledgebase\/docs-tag\/policy\/"}],"yoast_head":"\nCrowdfunding Campaign Failure & Shortfall Policy | Utsav Daan - MyMahotsav<\/title>\n<meta name=\"description\" content=\"What happens when crowdfunding campaigns fail or fall short? 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