So you’ve decided that crowdfunding is right for you. Great! But how do you know which crowdfunding platform is right for your needs? Whether you’re raising money for a financial emergency, a business idea, a creative project, a personal dream, or even to help a friend in need, you’ll want to consider these five factors in choosing the right fundraising platform:

  1. Type of crowdfunding model
  2. Features and performance
  3. Trust and fraud protection
  4. Customer support
  5. Fees

1. Three Types of Crowdfunding Models Explained

Not all online fundraising sites are built to support the same things, so first you’ll want to understand the type of fundraising you’re looking to do before.

Personal Fundraising

If you’re an individual raising funds for a neighbor, friend, family, or organization, you’ll be better off choosing a platform which focuses on personal fundraising. They’re quick to set up, include the basic sharing features you need, and allow you to start collecting donations right away. Examples include GoFundMe and HoneyFund. Many of these platforms allow individuals to raise funds for a nonprofit, too, with the money being sent directly to the charity of your choice.

Business or Creative Project Crowdfunding

If you’re looking to launch a product or start a creative endeavor, consider a project-based fundraising site like Indiegogo or Kickstarter. These platforms offer a more professional feel as well as many marketing opportunities to expand your reach.

Indiegogo specializes in technology and hardware product launches. Indiegogo’s audience skews more toward tech early adopters, so if you’re launching an innovative product, Indiegogo could be an ideal place to fundraise. Another benefit of Indiegogo is their team of marketing strategists who help expand your reach during your campaign.

Kickstarter is geared toward creative projects. If you’re a musician, artist, or filmmaker, Kickstarter could be a good option.

Nonprofit Fundraising

If you’re a charitable organization, you know how hard it is to find nonprofit funding sources. Online fundraising is becoming more common for nonprofits as an additional way to raise funding. There are a few options:

Encourage supporters to start fundraisers for your nonprofit

You can encourage long-time volunteers and other supporters to start a fundraiser on a personal fundraising site. They can rally friends and family to raise funds that go directly to your organization. Functionality will be limited, but the tradeoff is that it’s quick and easy to get set up.
Plus its a great way to get your community involved.

Start a fundraiser for your nonprofit

If you’re looking for more robust functionality, consider sites like CrowdRise or Classy. They offer features that make nonprofit fundraising easier, like incorporating event registration into your fundraiser or integrating with your nonprofit’s CRM software. You can usually try out a free version of the product before committing to a paid subscription for a more advanced set of features.

2. Features and Performance

Each platform offers unique features that help their organizers be successful. Below we’ve mentioned some of the most notable features you should look for.

Support For Adding a Beneficiary

Running a fundraiser for someone else should be relatively easy as long as you’re aware of the platform’s beneficiary features. Platforms like JustGiving require you to add your beneficiary’s bank account information in for them, so be sure they’re comfortable giving you their personal bank account information before signing up. On the other hand, GoFundMe lets the beneficiary set up a separate but linked account where they can securely enter their own information to withdraw the funds. If you’re raising funds for a nonprofit organization, you should confirm that the charity is already in the platform’s system so they can easily receive the funds to their bank account.

How Fast Can You Access your Donations?

Personal fundraising platforms

Personal fundraising sites like GoFundMe and HoneyFund typically send the funds within 2-5 business days, which is the fastest of all crowdfunding sites. Other major crowdfunding platforms can take longer, usually depending on the payment processor used.

Project-based crowdfunding sites

Sites like Indiegogo and Kickstarter have longer timeframes, and Kickstarter requires you to reach your goal to withdraw the funds. Indiegogo sends the funds 15 business days after your fundraiser ends, while Kickstarter sends the funds 14 days after your goal is reached.

Nonprofit fundraising platforms

There are usually a bit more restrictions when it comes to nonprofit fundraising sites. Often if your organization is enrolled in GuideStar then you can receive faster payouts by a direct deposit. If you aren’t enrolled then it may take longer to receive funds. Make sure to double check the nonprofit fundraising site’s fund retrieval options before picking a platform.

Will You Need a Mobile App?

While most crowdfunding sites have a mobile site, using a mobile app to manage your fundraiser will provide the best “on the go” experience. Kickstarter, Indiegogo, and GoFundMe have highly rated apps in the Google Play and Apple App Store. GoFundMe recently came out with a unified app experience where donors can browse through fundraisers to donate, and organizers and beneficiaries can easily manage their account(s). Kickstarter’s app is perfect for browsing through other successful projects to spark your own creative thinking, and you can easily become a backer for the next cutting-edge project.

3. Trust and Fraud Protection

With any online site, it’s important that they have the security features to ensure both you and your donors feel comfortable trusting them with your financial information. Make sure you feel comfortable with the crowdfunding platform’s safety features.

Level of PCI Compliance

All crowdfunding websites are required to use encrypted Secure Socket Layer (SSL) technology to process payments, which is the same technology that banks use. Since the industry requires this, listing it publicly doesn’t necessarily make a site more secure, since it’s required. A true differentiator is what level of PCI compliance a site has, if any. Only Facebook and GoFundMe have the highest level of PCI compliance, while others like Fundly don’t process enough payments to be Level 1.

The Platform’s Better Business Bureau (BBB) Rating

If the company has an A+ BBB review and publicly responds to customer’s complaints, they truly value their customer experience. If the company has an A+ review but doesn’t reply to users’ public complaints, it raises the question where else they might be lacking in customer support.

Trust and Safety

If you can easily report a fundraiser, that’s a good sign. All reputable sites should have the option to report a fraudulent fundraiser to ensure the site’s security. Kickstarter and GoFundMe have easy ways to report potentially fraudulent fundraisers and publicly mention their Trust & Safety Teams. GoFundMe goes above and beyond with their GoFundMe Guarantee, which is insurance for crowdfunding that you don’t have to pay for.

4. Customer Support

In a perfect customer support scenario, you won’t need to contact support at all. However, this is rare. Because you’ll likely contact support at least once, we outlined the top platforms for you so that you can get a better idea of what to expect.

GoFundMe

  • 24/7 email support offered
  • Help Center and blog for tips

Indiegogo

  • Provides 24/7 email support
  • Help Center and Education Center

Fundly

  • Email support option
  • Help Center
  • Nonprofits can purchase phone support

CrowdRise

  • Email support available 7 days a week
  • Help Center and Study Hall for tips
  • Personalize training for fundraising success

Facebook

  • Email support for Facebook users
  • Facebook Help Center (not dedicated to fundraising)

5. Understanding Platform Fees Versus Payment Processor Fees

Though crowdfunding platforms have made fundraising easier than ever, they do come at a cost. Most platforms take a percentage of the funds you receive called a platform fee and others have additional upfront costs. But some offer a 0% platform fee where donors can leave optional tips. All sites have mandatory payment processing fees. It’s very important to understand the entire fee structure before you start sharing your fundraiser and receiving donations.

Platform Fees

A platform fee is when a crowdfunding site deducts a percentage of your donations to use their platform. Common platform fees range from 3% to 5%. Some platforms take up to 30% but luckily a few, like GoFundMe, have adopted a free fundraising model. Instead, they allow donors to tip for their services.

Payment Processing Fees

These fees are unavoidable. Payment processors like WePay and PayPal deduct a fee for their services. So when you donate money online, payment processors collect a small fee for each transaction.

Donor Tips

GoFundMe offers a free fundraising platform where donors leave tips to cover platform fees. All fundraising websites require payment processing fees, which cannot be covered by the donor’s tip. Read more about why GoFundMe went free.

Upfront Costs

Premium fundraising websites like Classy, CrowdRise Premium, and HoneyFund Elite all charge a subscription in addition to the platform and payment processing fees. Though the fees might be higher, they offer additional features to make the cost worth it. Some websites offer lower platform fees to offset the upfront cost.

Pick the Best Crowdfunding Platform for Your Goals

With so many incredible online fundraising platform options, it’s rare that you’ll pick a bad platform. However, we hope that this list helps teach you how to choose a crowdfunding platform. Whether it be for a creative project, a surprise birthday party, or the best honeymoon you could ever ask for, crowdfunding is the fastest and easiest way to receive the funds from your family, friends, and online community.

Start a fundraiser

sponsored by

793 comments

  1. Pingback: viagrauk
  2. Pingback: best price cialis
  3. Pingback: order tylenol
  4. Pingback: clomid price
  5. Pingback: cialis for sale
  6. Pingback: order viagra usa
  7. Pingback: cialis tablet
  8. Pingback: order cialis
  9. Pingback: cialis canada
  10. Pingback: viagra alternative
  11. Pingback: http://lm360.us
  12. Pingback: lexapro 20mg uk
  13. Pingback: abilify 15mg uk
  14. Pingback: antabuse 500mg uk
  15. Pingback: aricept 10mg uk
  16. Pingback: arimidex 1mg usa
  17. Pingback: cheap cialis uk
  18. Pingback: avapro 300mg pills
  19. Pingback: cialis in spain
  20. Pingback: buy Biaxin 250 mg
  21. Pingback: buspar 5 mg coupon
  22. Pingback: cardizem tablets
  23. Pingback: order casodex
  24. Pingback: hollywood casino
  25. Pingback: real money casino
  26. Pingback: casino games
  27. Pingback: real casino online
  28. Pingback: online casino usa
  29. Pingback: sr22 insurance
  30. Pingback: sr22 insurance
  31. Pingback: safe car insurance
  32. Pingback: viagra genetics
  33. Pingback: discount viagra
  34. Pingback: tadalafil 20mg
  35. Pingback: cialis
  36. Pingback: cialis pills
  37. Pingback: sophia viagra nude
  38. Pingback: viagra free trial
  39. Pingback: viagra naturale
  40. Pingback: sildenafil generic
  41. Pingback: custom essays
  42. Pingback: viagra com
  43. Pingback: atorvastatin news
  44. Pingback: web assign utah
  45. Pingback: buy cleocin 300mg
  46. Pingback: clomid 25 mg cost
  47. Pingback: clonidine pills
  48. Pingback: marley drug viagra
  49. Pingback: cialis prices
  50. Pingback: buy cialis generic
  51. Pingback: coreg purchase
  52. Pingback: compazine online
  53. Pingback: generic cialis
  54. Pingback: order coumadin 1mg
  55. Pingback: crestor prices
  56. Pingback: dapsone caps cost
  57. Pingback: ddavp for sale
  58. Pingback: diamox prices
  59. Pingback: cheap differin
  60. Pingback: cialis from canada
  61. Pingback: etodolac uk
  62. Pingback: flomax 0,4mg pills
  63. Pingback: geodon for sale
  64. Pingback: hyzaar for sale
  65. Pingback: keflex dosing
  66. Pingback: cialis buy
  67. Pingback: tadalafil for sale
  68. Pingback: viagra substitute
  69. Pingback: blog link
  70. Pingback: injecting zanaflex
  71. Pingback: how viagra works
  72. Pingback: imuran cheap
  73. Pingback: lamisil canada
  74. Pingback: luvox 50mg cost
  75. Pingback: meclizine cost
  76. Pingback: buy viagra japan
  77. Pingback: mestinon for sale
  78. Pingback: abilify vs rexulti
  79. Pingback: atorvastatin 10mg
  80. Pingback: motrin otc
  81. Pingback: baclofen enzyme
  82. Pingback: phenergan pills
  83. Pingback: viagra
  84. Pingback: plaquenil 400mg uk
  85. Pingback: prednisolone otc
  86. Pingback: buspar as needed
  87. Pingback: celexa 60mg
  88. Pingback: buy viagra online
  89. Pingback: viagra wiki
  90. Pingback: pyridium prices
  91. Pingback: revatio 20mg pills
  92. Pingback: risperdal generic
  93. Pingback: rogaine tablets
  94. Pingback: cheapest seroquel
  95. Pingback: buy singulair 10mg
  96. Pingback: viagra femenino
  97. Pingback: vantin 200 mg nz
  98. Pingback: verapamil tablet
  99. Pingback: voltaren purchase
  100. Pingback: article
  101. Pingback: zocor tablet
  102. Pingback: sildenafil cost
  103. Pingback: tadalafil tablets
  104. Pingback: escitalopram cost
  105. Pingback: viagra as joke
  106. Pingback: atomoxetine price
  107. Pingback: anastrozole usa
  108. Pingback: irbesartan pills
  109. Pingback: cefuroxime pills
  110. Pingback: cialis sale 20mg
  111. Pingback: cialis 4 less
  112. Pingback: cialis goodrx
  113. Pingback: phenytoin nz
  114. Pingback: venlafaxine pills
  115. Pingback: permethrin 30g otc
  116. Pingback: 141genericExare
  117. Pingback: 141generic2Exare
  118. Pingback: pnwhtqpn
  119. Pingback: viagra daily usa
  120. Pingback: ejlfinrn
  121. Pingback: alendronate price
  122. Pingback: glipizide 5mg otc
  123. Pingback: viagra online 75mg
  124. Pingback: URL
  125. Pingback: using sildenafil
  126. Pingback: loperamide 2mg nz
  127. Pingback: cialis on line
  128. Pingback: dapoxetine 90mg
  129. Pingback: cialis
  130. Pingback: viagra prices
  131. Pingback: viagra 100 mg
  132. Pingback: viagra order form
  133. Pingback: help me essay
  134. Pingback: stromectol cost
  135. Pingback: buy deltasone
  136. Pingback: cialis expiry
  137. Pingback: atorvastatin uk
  138. Pingback: ventolin online
  139. Pingback: sildenafil teva
  140. Pingback: viagra and alcohol
  141. Pingback: sex with viagra
  142. Pingback: viagra stock
  143. Pingback: doxycycline sulfa
  144. Pingback: nizagara vs viagra
  145. Pingback: cialis viagra
  146. Pingback: pharmacy diflucan
  147. Pingback: buy viagra
  148. Pingback: avanafil vs viagra
  149. Pingback: cost of cialis
  150. Pingback: essay writing help
  151. Pingback: ask propecia dead
  152. Pingback: buy school papers
  153. Pingback: urobactrim
  154. Pingback: can you cut viagra
  155. Pingback: cialis black
  156. Pingback: ringing ear cialis
  157. Pingback: viagra dick help
  158. Pingback: is metformin safe
  159. Pingback: paxil coupon
  160. Pingback: canadian drug
  161. Pingback: 20mg cialis
  162. Pingback: meds online
  163. Pingback: prices on cialis
  164. Pingback: safe buy
  165. Pingback: buy now
  166. Pingback: is viagra generic
  167. Pingback: buy now
  168. Pingback: buy wyeth ativan
  169. Pingback: free hpv dating
  170. Pingback: Adult dating site
  171. Pingback: online real viagra
  172. Pingback: cialis or viagra
  173. Pingback: viagra free sample
  174. Pingback: cialis 500mg
  175. Pingback: cialis goodrx
  176. Pingback: cocaine and viagra
  177. Pingback: is acyclovir safe
  178. Pingback: neurontin 900 mg
  179. Pingback: levitra walmart
  180. Pingback: Free dating
  181. Pingback: viagra script
  182. Pingback: norvasc amlodipine
  183. Pingback: metoprolol 25 mg
  184. Pingback: viagra cost
  185. Pingback: cialis everyday
  186. Pingback: levitra dose
  187. Pingback: cymbalta
  188. Pingback: what is prednisone
  189. Pingback: cytotmeds.com
  190. Pingback: keto reset diet
  191. Pingback: buy buspar online
  192. Pingback: celexa mg
  193. Pingback: bupropion sr
  194. Pingback: finasteride dosage
  195. Pingback: how viagra works
  196. Pingback: vardenafil 20 mg
  197. Pingback: acyclovir dosing
  198. Pingback: what is aricept
  199. Pingback: cialis 100mg cost
  200. Pingback: cialis 100 mg
  201. Pingback: otc generic cialis
  202. Pingback: levitra singapore
  203. Pingback: mom son viagra
  204. Pingback: tadalafil prices
  205. Pingback: 100mg viagra cost
  206. Pingback: herbal viagra
  207. Pingback: sildenafil cream
  208. Pingback: what is amlodipine
  209. Pingback: cialis price
  210. Pingback: metformin pharmacy
  211. Pingback: cialis 2018 coupon
  212. Pingback: doxycycline acne
  213. Pingback: furosemide dose
  214. Pingback: xenical cap
  215. Pingback: dapoxetine 10 mg
  216. Pingback: propecia hair loss
  217. Pingback: clomid pct plan
  218. Pingback: tizanidine cap 2mg
  219. Pingback: cialis black 800mg
  220. Pingback: cipro class drug
  221. Pingback: cialis brand name
  222. Pingback: sildenafil 25 mg
  223. Pingback: viagra pills price
  224. Pingback: watermelon viagra
  225. Pingback: cialis max dose
  226. Pingback: regcialist.com
  227. Pingback: omeprazole prices
  228. Pingback: atorvastatin 40 mg
  229. Pingback: sildenafil 20 mg
  230. Pingback: discount viagra
  231. Pingback: stromectol msd
  232. Pingback: cialis 5mg
  233. Pingback: buy cialis viagra
  234. Pingback: cialis by mail
  235. Pingback: viagra otc
  236. Pingback: 1
  237. Pingback: female viagra
  238. Pingback: cialis and bph
  239. Pingback: viagra sample
  240. Pingback: canada rx viagra
  241. Pingback: ivermectina
  242. Pingback: tadalafil dosage
  243. Pingback: ivermectin news
  244. Pingback: ivermectin 625
  245. Pingback: sildenafil generic
  246. Pingback: natural viagra

Comments are closed.