Comparing Crowdfunding Platforms

By Becky Fitzpatrick, Digital Marketing Associate


Kickstarter

Mission: “Kickstarter helps artists, musicians, filmmakers, designers, and other creators find the resources and support they need to make their ideas a reality”.
Purpose: Kickstarter focuses on funding creative projects more than generic fundraisers.
Launch: 2009

Notes:

  • It’s has been covered on many news outlets and the name is popular among millennials.
  • If your goal is not met, all money is returned to the donors.
  • Only funds creative projects in these categories: Art, Comics, Crafts, Dance, Design, Fashion, Film & Video, Food, Games, Journalism, Music, Photography, Publishing, Technology, and Theater. It must be a project with a clear goal – cannot fundraise for charity.
  • Cost: If a project is fully funded, Kickstarter applies a 5% fee to the funds collected.
    • All pledges are processed securely by Stripe, their third-party partner, with fees equaling about 3-5%.
    • If the project does not reach its funding goal, there are no fees.
Indiegogo

Mission: “Indiegogo empowers people to activate the global community to make ideas happen. Then, we help you spread the word.”
Purpose: Indiegogo focuses on fundraising or helping a cause, rather than funding a specific creative project.
Launch: 2008

Notes:

  • It’s has been covered on many news outlets and the name is popular among millennials.
  • If your goal is not met, you still keep the money you raised and transaction fees do not apply for refunded contributions.
  • Cost: It is free to sign up, to create a campaign, and to contribute to a campaign. When your campaign raises funds, Indiegogo charges a 5% fee on the funds you raise.
GoFundMe

Mission: GoFundMe provides entrepreneurs, artists & inventors with the tools to successfully crowdfund ANY project.
Purpose: Revolves around personal causes and life-events rather than large scale nonprofits or product launches
Launch: 2010

Notes:

  • Interesting option for nonprofits. This is generally a personal fundraiser option but GoFundMe partners with a list of nonprofits that fundraisers can choose to donate their funds to.
  • Most often used for personal reasons like medical emergency, tuition needs, building a new house, etc.
  • Cost: GoFundMe operates on only a 5% fee deducted from each donation received. A small processing fee of about 3% will also be deducted from each donation.
Crowdfunder

Mission: “Crowdfunder helps you raise funds to make your great idea a reality. If you are a community group, a business, a charity, a social enterprise, a sports club, or a person with the spark of an idea that you want to turn into reality, then we want to help you fund it.
Purpose
: Crowdfunder focuses on funding both causes and specific projects.

Notes:

  • Based in the UK, and more popular in the UK than in USA
  • You can use Crowdfunder outside of the US, but you'll have to use PayPal or Stripe as a payment method, as GoCardless requires a UK bank account.
  • You can add a stretch target to your project before you go live and/ or when you are already live.  Your stretch target will only appear on your project page on the Crowdfunder website once you have reached your target.
  • Cost:  5% + VAT  [VAT is 20% on the fees (1%) so the overall fee is 6%]
    • 0.5% GoCardless fee on each pledge (taken on payout).
    • 1.9%+ 20p Stripe fee on each UK pledge (taken on payout).
    • 2.9%+ 20p Stripe fee on each non-UK pledge (taken on payout).
    • 1.4%+ 20p PayPal fees (taken on payout).
RocketHub

Mission: “Get Funded. Get Discovered. Make it Happen”
Purpose: Offers services to a diverse crowd including art, science, business and social good

Notes:

  • Keep your funds regardless of whether or not you reached your goal
  • Cost: Reach your goal: 4% commission fee + 4% credit card handling fee
    • Don't reach your goal: 8% commission fee + 4% credit card handling fee
    • No upfront costs
Some keywords to know when researching your crowdfunding platform
  • Flexible Funding - keep what you raise, even if you didn’t reach your goal
  • Fixed Funding - all or nothing approach to amount raise, so if you don’t reach you goal you give back the money
  • Crowdfunding - the practice of funding a project or raising funds by reaching out to a large number of people (either locally or globally). Many small donations add up to a larger amount
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