Hard Cap

A hard cap is the maximum amount of funds a crowdfunding campaign or a fundraising event aims to raise. Once this limit is reached, no more contributions are accepted. It helps organizers manage expectations, allocate resources effectively, and prevent overfunding. Think of it as a set goal; once achieved, the campaign closes to ensure financial and operational boundaries are maintained. This contrasts with a soft cap, which is a minimum goal that needs to be met for the project to proceed. The hard cap provides clarity for both organizers and participants, ensuring transparency and planning certainty.