Crowdfunding is the "magic" behind Kickstarter and IndieGoGo - post an idea, activate your networks, and see if you can raise small bits of money from as many people as possible to meet a funding goal. Crowdfunding is linked to a technology platform that lets you highlight certain projects, share information easily, link and make badges and crosspromote easily. It also can have an offline component - as seen in community fundraising efforts like Feast.
You can join a conversation about crowdfunding business models with Sam Beinhacker and Josh Tetrick at #SocialEdge discussion on crowdfunding.
WebDistortion provides this review of 9 Crowdfunding sites including Kickstarter, IndieGoGo, ProFounder, CoFundOs, and others.
Wired Magazine recently reviewed crowdfunding for science. These sites include SciFlies, EurekaFund, and FundScience. Wired also did a piece on crowdfunding photojournalism.
If you're keeping track here are the other 7 1/2 buzzwords so far this year. (We have a bonus buzzword - Chugging/Chugger 2010.7a - In honor of the new Voluntary Sector network on The Guardian UK . I ran my first post over there last week asking "What will change everything in philanthropy?"
2010.7a - Chugger
2010.7 - Giving Pledge
2010.6 - Co
2010.5 - Charitywashing
2010.4 - Curator
2010.3 - Networked
2010.2 - Sector Agnostic
2010.1 - Scale