Top Crowdfunding Sites: Pick the Right One for Your Needs
Crowdfunding has become an essential tool for raising money for everything from new product launches to medical bills to scientific research. But with so many crowdfunding websites out there now, you might be wondering which platform will best fit your needs.
Crowdfunding sites compared: four key services to look for
Before we dive into the top crowdfunding sites, here are four key considerations to keep in mind as you compare platforms,including site features, community and fee structures.
Ease of use
Before you start a crowdfunder, navigate through the site. The best crowdfunding sites make you want to spend time on their pages, learn more and get involved. If a crowdfunding site is difficult to use, choose a different one. Some things to consider might be how quickly it takes to set up a fundraiser, how easy it is to donate to a fundraiser and how easy it is to find a specific fundraiser.
Customer support
Does the site offer email support, live chat or a phone help line? Remember that your friends and family members will be donating money and they might need help, too. It’s important for the people behind the site to be honest, responsible and available.
Tools for spreading awareness in your community
Take a look at the social networking tools the crowdfunding site offers. The best ones have easy-to-use tools that make it easy to share your fundraiser via Facebook, Twitter, email and more. Because your social network is a vital piece of your crowdfunding effort, features like these are essential.
Crowdfunding fees comparison
A platform fee is when a crowdfunding site takes a percentage of all the money you raise through your fundraiser. Typically, crowdfunding platform fees range from 5% to 12%. Look out for punitive fee structures. Some platforms increase fees if you don’t meet your goal. Others have an all-or-nothing model, meaning you only receive the money you raised if you meet or exceed your goal.
Personal crowdfunding and fundraising for charities
Personal fundraising is when you raise funds for something that you or someone you know needs. You may need to fundraise for medical bills, vet bills, to achieve a dream or to help a friend, but it is all possible on a crowdfunding site. You can also use the power of crowdfunding to fundraise for your favourite charity.
GoFundMe
GoFundMe is the world’s largest social fundraising platform for individuals, teams and not-for-profits with a giving community of more than 50 million worldwide. More than $9 billion has been raised and it’s the first and only platform with a donor protection guarantee. GoFundMe has Customer Happiness agents available 24/7.
Fees: Powered by donors™, GoFundMe offers free crowdfunding. There is a 0% platform fee plus standard payment processing fees of 2.9% plus €0.30 per donation or 1.9% for charity campaigns.
JustGiving
The well-known fundraising site allows users to create personal or charity fundraising pages.
Fees: GoFundMe has a 0% platform fee while JustGiving takes 5% of the Gift Aid added to each donation you make to a charity.
iDonate
iDonate is an online fundraising platform for charities and non profit organisations in Ireland.
Fees: iDonate do not charge platform fees but they do have a transaction fee of 1.96% + €0.25c.
Crowdfunding for creative projects
Crowdfunding can be great for fundraising for a creative project. Got a film that you are trying to make but don’t have the funds? Have you always dreamed of going to ballet school but can’t afford the fees? Crowdfunding can help you turn your creative dreams into a reality.
Kickstarter
Creators seeking funding for particular projects can use the site to bring the project to life. Creators (ranging from individual designers and inventors to large corporations that want to test new product ideas) offer backers rewards, such as a small piece of the project, the first available prototypes or the products that they are raising money to manufacture. You must raise all the funds you need or get nothing.
Fees: service fee of 5%, along with 3-5% + £0.20 per transaction for payment processing. All or nothing.
Indiegogo
If you want help at every stage of your creative or entrepreneurial project, this site offers tools to help you get the job done, from pre-launch to crowdfunding and distribution. You can choose either all-or-nothing or flexible funding.
Fees: platform fee of 5%, along with 2.9%*+£0.30 per transaction for payment processing. They have an international transfer fee of £25.
Patreon
This platform allows you to gather recurring patronage for your art or other creative projects in the form of monthly subscriptions from fans. Patreon encourages users to offer rewards to fans as a way to repay them for their support.
Fees: they have a Patreon fee of 5-12%, along with 2.9% plus 0.30p for payment processing. Micropayments have a 5% fee.
Equity crowdfunding
Equity crowdfunding is a great way to grow your business through the power of the people. It is also a great way to expand your network, attract international customers and raise capital for your business.
Fundable
Fundable focuses on helping entrepreneurs, startups and companies raise capital from the public through business crowdfunding. The site allows users to offer either rewards or equity in return for financial support.
Fees: $179 a month, along with 3.5% + $0.30 per transaction for payment processing.
WeFunder
If you want to grow your existing business, WeFunder can help. Your investors receive a small stake in your company and the platform aims to increase their emotional investment in your success.
Fees: it’s free to start a company profile but they charge a service fee ranging from $7 to $75 depending on the investment size and 7% of total funding volume for Regulation Crowdfunding. For Regulation D they charge up to 20% Carried Interest and for Regulation A+ WeFunder does not charge any fees.
Crowdfunder US
This equity crowdfunding platform allows businesses to sell shares to accredited investors. Crowdfunder has a network of 15,000 venture capitalists and angel investors.
Fees: subscription models range from $299 per month to $999 per month.
Start Engine
Start Engine has recently acquired Seed Investment. It is an equity crowdfunding platform that allows startups to raise funds from individual investors and venture capital firms. Entrepreneurs must meet their minimum funding goals before investments are made final.
Fees: they have a 7.5% placement fee with a 5% warrant coverage or equity, plus a $0 to $10,000 fee for escrow, marketing and legal expense reimbursements.
Niche crowdfunding
Crowdjustice
The only crowdfunding site designed for legal cases. CrowdJustice enables individuals, groups and communities to come together to fund legal action.
Fees: 3% + payment processing
Choose the crowdfunding platform
Use this list of the best crowdfunding sites to find the platform that works best for your project or cause. For more crowdfunding inspiration, take a look at these fundraising tips and ideas. Start your fundraiser today.