Which crowdfunding platform should I use?
Kickstarter was the first, but since its inception many more followed, and now there are dozens of crowdfunding websites to choose from… But which is the best crowdfunding website to use for fundraising?
It depends on your goals: what you’re fundraising for, how much you want to raise, and in what timeframe. Here’s a breakdown of some popular crowdfunding web sites and what to know when considering each one for your cause:
Cause Types Permitted: Creative projects — no charities
Timeframe: 1-60 days
Overhead Costs: 5% platform fee, plus 3-5% transaction cost
Perks: Recognition, high site traffic
Other Limitations: All-or-nothing fundraising — goal must be met for any funds
International? Yes
Indiegogo is used to raise funds for a business initiative, creative project, or non-profit organization. Indiegogo Life raises funds for self or others (e.g. to pay medical costs, veterinary bills, tuition) or to celebrate a life event like a wedding.
Cause Types Permitted: Creative, business, beneficiary, fundraising
Timeframe: 15, 30, 60, or 120 days
Overhead Costs: Indiegogo: 9.0% fee on funds raised, 5% refund if goal is reached. Registered 501(c)(3) nonprofits receive a 25% discount. 3-5% for credit card or PayPal processing. $25 wire fee if you run a non-US campaign and have raised funds in USD via Direct Credit Card. Indiegogo Life: No platform fee.
Perks: Can accept fundraising more than initial goal. Life creators get funds no matter what, Indiegogo users have an option to choose “all-or-nothing.”
Other Limitations: Leave 15 days between end of fundraiser and when needed to allow time to get funds.
International? Yes
Cause Types Permitted: Any/all
Timeframe: None
Overhead Costs: 5% platform fee
Perks: Can withdraw funds at any time (takes 5-7 business days), mobile version
Other Limitations: Must not break any local laws or promote inappropriate content
International? Some
Cause Types Permitted: Personal or Nonprofit
Timeframe: 90 days, can extend
Overhead Costs: 2.9%, plus $.30 per transaction
Perks: Money goes to you as it is donated
Other Limitations: No fundraising campaigns for legal matters. Creator must use Stripe, WePay, or PayPal
International? Yes
Cause Types Permitted: Individuals, Nonprofits
Timeframe: None
Overhead Costs: 3% for nonprofits (including credit card transaction fees)
Cause Types Permitted: Individuals
Overhead Costs: 7.9% + .30 per transaction
Perks: Commenting ability, mobile app, privacy options
Cause Types Permitted: Creative projects
Timeframe: Ongoing
Overhead Costs: 5% platform fee, plus credit card or other transaction fees
Perks: Donors can donate monthly or per creation
Other Limitations: No one-time donations — either monthly or per creation. Cannot use to fundraise, must produce some output.
International? No
Cause Types Permitted: Individuals, Nonprofits
Overhead Costs: $500 a year for nonprofits, 9% fee + 2.5% credit fee for individuals but must support certified nonprofit (signed up with FirstGiving)
Perks: Possible event creation, can email donors en masse
Cause Types Permitted: Individuals, Nonprofits, Sales
Timeframe: 60 days, can extend
Overhead Costs: 2.5% fee for fundraising, 3% processing w/credit card
Perks: Can collect money, fundraise, or sell items. No one’s cards are charged if fall short of goal. Can also set “dream” target to exceed goal.
Other Limitations: Must meet “tilt” goal. Must be on Facebook to start. Only funds benefitting US-registered non-profits with a 501(c)(3) are paid out when the Tilt ends, funds are dispersed to the organization directly.
International? No (must have U.S. or Canadian bank account)
Cause Types Permitted: Organizations (businesses, startups, schools, nonprofits, entrepreneurs)
Overhead Costs: Monthly fee starting at $350 a month
International? Yes
Cause Types Permitted: Businesses and startups
Timeframe: 60-90 days
Overhead Costs: Flat monthly fee, varies
Other Limitations: Only “Accredited Investors” can invest, does not actually transfer funds
International? Yes
Cause Types Permitted: Any/all
Timeframe: 15-90 days
Overhead Costs: Goal met: 4% commission fee + 4% credit card handling fee. Goal not met: 8% commission fee + 4% credit card handling fee.
Perks: No ‘all or nothing,’ can exceed fundraising goal.
Other Limitations: No $ until timeframe completed, Once project is posted, unable to alter your financial goal or timeframe. 5-10 days to receive funds.
International? Yes
Did we miss any crowdfunding sites? Have you had good or bad experiences with any of these? Let us know in the comments!
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