Crowdsourcing is a noun for the practice of asking a large group of people, usually on the internet, to give resources like ideas or services. The idea of it is to not limit oneself to a particular group but to ask a wide range. It is a relatively new word, from the last decade or so. It is a dictionary accepted word that was created as a compilation of crowd and outsourcing.
The verb form is crowdsource, crowdsources, etc.
Crowdfunding is the same basic principle as crowdsourcing, except that one is asking for money specifically instead of other services. This term was coined around the same time as crowdsourcing.
The verb form is crowdfund, crowdfunds, etc.
Both terms can also be adjectives, usually in the past tense form of the verb, crowdsourced and crowdfunded.
Examples
Appirio has launched AppXpress, a new marketplace for businesses to build iOS apps using a global crowdsourcing community of 750,000 plus app developers, designers and UI/UX experts. [App Developer Magazine]
Amazon is looking to build a crowdsourced network of drivers as it looks to speed up its drop-off service and reduce shipping costs, according to a Wall Street Journal report. [CNBC]
There are no statistics for the number of children and teens whose summer activities are being financed through crowdfunding, but Kelsea Little, a spokeswoman for GoFundMe, said fundraising for summer camps is skyrocketing on the site. [The Denver Post]
With her husband Sean by her side, Jessica Haley, 30, from Melbourne Beach, Florida, gave birth to the world’s first crowdfunded baby on April 7 2012. [The Telegraph]