Regulation of Electronic Fundraising in the Donation Based Crowdfunding System

Abstract

Based on the 2021 World Giving Index report, the world charity Charities Aid Foundation (CAF) placed Indonesia first on the list of generous citizens. This is influenced by the increasingly rampant development of social fundraising based on electronic systems. However, in its development, it is not separated from a problem, the fact of misappropriation of funds that have been donated. The legal issue raised in this study is related to the lack of norms regarding the regulation of electronic fundraising in the donation based crowdfunding system. The problems raised in this study are: a) what are the legal arrangements related to licensing in the implementation of electronic social fundraising in the donation based crowdfunding system? b) What is the form of accountability of electronic fundraising organizers to campaigners and donors in Indonesia? This research uses a type of normative legal research, the approach used in solving problems is through the approach of laws and regulations and the approach of analyzing legal concepts. The results of the study show that the regulations on the implementation of social fundraising in Indonesia are no longer sufficient in regulating the current development of philanthropic activities, as well as the extent of the form of legal responsibility of parties involved in organizing electronic fundraising in the donation based crowdfunding system. So that regulations related to the implementation of social fundraising need to be reviewed in terms of law to be able to provide guarantees and legal protection to the community.