Indiegogo has raised over $800 million for projects since its inception - including ventures like a bug-killing salt rifle, 13 dates for a British bachelor named Tom, caffeinated toothpaste and an attempt to bail out Greece.

These sites can also be fertile ground for potential scams. Washington State Attorney General Bob Ferguson calls the phenomenon "crowdfunding theft," and last year ordered restitution to donors who had paid up for one project of horror-themed playing cards and got zilch in return.

Vigilante sites have also cropped up, like Kickscammed and GoFraudMe, to police crowdfunding projects which do not follow through on what they promise.

The main source of conflict: Once the funds are dispersed, there is not a lot of transparency. When famed girl group TLC raised more than $430,000 from fans last year to put out new music, the musicians faced backlash when no album emerged.

Give Smarter

To effectively sort through donation requests, potential donors need to avoid information overload, which can make it hard to discern between the truly needy and the personal larks. Research shows when donors get bombarded with direct-mail requests for money, Indiana University's Pasic said, they do not get more generous - they just get really irritated.

Some stop giving altogether. If you get a crowdfunding request and do not know the person that well, "just ignore it," advised financial planner George Gagliardi of Lexington, Massachusetts.

If the situation is more delicate - such as a close friend or family member - Gagliardi suggested dividing the requests into varying levels of urgency, from "dire, life-threatening situations" all the way to "luxuries." Then you can make the call depending on the particular case, and your own financial ability to contribute.

The final step is to take the request out of the digital world. Ask yourself: Would this person actually ask for money to your face?

"People are using the cover of technological distance, and just hoping people will make quick donations on the fly," said Pasic. "If there is a genuine need, and a real case to be made, then try picking up the phone and talking with them about it."

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