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
Share on facebook
Share on twitter
Share on linkedin
Share on email

Introducing our newest partners…

Introducing our newest partners…   Faircom New York is excited to announce our newest partners in fundraising: Girls Who Code, Conquer Cancer, MiracleFeet, and the…
All articles loaded
No more articles to load