Crowdfunding is one of the ways how individuals, non-profit organizations, startup companies, and small businesses can receive funding or capital from their network. Throughout history, there are always some forms of crowdfunding for causes like charity. In the age of Internet, crowdfunding becomes easier than ever with the ease of accessing many crowdfunding platforms on the Internet today.
Different crowdfunding platforms have different purposes and funding policies. Some are mainly built for commerce focused while some are mainly created for charity causes.
Kickstarter helped varieties of projects/ideas such as technology, music, games, art, fashion and books. Today, there are about 12.4 million people backed at least one project in Kickstarter
- Kickstarter collects a 5% fee from a project’s funding total if it is successfully funded. There are no fees if a project is not successfully funded.
- If a project on Kickstarter does not reach its funding goal, no backers are charged and no money changes hands.
- Restricted on political fundraisers, pornography, illegal drugs, weapons, contests, gambling… check out more on Kickstarter’s rules
Indiegogo helped raised more than one billion dollars for more than 650,000 different varieties of projects with more than 11 million backers all over the world.
- Accept PayPal and credit cards and international payments like US dollar, Euro, Canadian dollar, Great Britain Pound and Australian Dollar
- 5% platform fee and payment processor fees (3-5% per processor). Campaigns with bank accounts outside the US will also have a $25/25€ bank transfer fee
- Nonprofits and socially minded campaigns have a 0% platform fee on Indiegogo Generosity
- Able to choose from flexible and fixed funding goal
- Flexible Funding allows the individual/entrepreneur to keep all their raised money raise, regardless of the goal status
- Fixed Funding means the individual/entrepreneur must have a specific funding goal that must be met, which can be a good choice for projects that require set funding to enter production.
GoFundMe is an individual/nonprofit friendly crowdfunding platform. It mainly supports causes like expansive medical treatment, college tuition, funeral, youth sport team and volunteering program.
- No deadlines or goal requirements and keep every donation received
- No penalties for missing goal
- GoFundMe deducts 5% platform fee and 2.9% of transaction fee on every donations
- Supports US dollar, Euro, Canadian dollar, Australian dollar and Great Britain Pound
YouCaring is a crowdfunding platform for individual charity causes like medical expense, tuition, emergency, memorial, faith, volunteering program and veterans. At the moment it has about 4.5 million supporters and raised $450 million for about 200,000 fundraisers.
- 0% platform fee but each donation charges 2.9% + $0.30 for transaction fee
- No specific time limit for funding and hosts are able to extend time limit
FundRazr had more than $96,000,000 raised by individuals and organizations in 10 currencies and over 20 countries worldwide. It is mostly for personal, charity, and non-profit causes like medical treatment, volunteering program, funerals, accidents and religious causes. In addition, there are a few entrepreneurial causes on FundRazr too.
- 5% platform fee plus transaction of 2.9% + 30¢* per donation received
- No time limit on fundraiser campaigns
Fundly is a platform for individuals and non-profit organization to create fundraisers for their causes. This crowdfunding platforms also allows the fundraiser to withdraw money anytime and to sell t-shirts and other merchandises to support their causes.
- No minimum amount to raise in order to keep the funds
- Payments usually can be withdrawn in 24-48 hours after the donation
- Free to create and share online fundraising campaign
- 4.9% platform fee from each donation that the campaign received, and a credit card processing fee of 3%
- Once the fundraising campaign began receiving online donations, fundraiser can easily request a withdrawal at any time and withdrawing money does not affect the progress meter that’s displayed on the campaign.
Here are six examples out of many large and small crowdfunding platforms in the Internet. Of course, there are many more crowdfunding sites in other languages and focusing on a particular region of the world. PressPlays is one of the largest crowdfunding platforms in Chinese language and it is supporting for music and educational causes. In conclusion, many crowdfunding platforms has a 5% platform fee and a third-party transaction fee of 3%.