Here at Conceptual Communications we sometime have the pleasure of working with nonprofits and startups, and funding is a HUGE component. Selecting which crowdfunding platform is the best choice for you and your company or nonprofit can be taxing.
Here is a quick rundown.
The Three Big Cheeses
Kickstarter: a platform that focuses on creative projects like art, music, film, etc. Funding is all or nothing and fees are fairly reasonable.
- GoFundMe: a crowdfunding platform designed for individuals and personal causes. No all or nothing requirement and reasonable fees
- Indiegogo: a unique platform that accommodates many, diverse campaigns. No all or nothing requirement, but fees can be higher.
Some Quick Stats
Kickstarter
- Boasts higher pledges to date than every other major crowdfunding platform combined.
- Approximately 65% of the projects on Kickstarter get fully funded within the campaign timeline.
- Funding on Kickstarter is all or nothing – if you don’t reach your funding goal within the designated timeline, you won’t receive any of the funds that were pledged to your project.
- There are no fees if your campaign is unsuccessful.
GoFundMe’s
- Campaigns are extremely shareable
- Funding on GoFundMe is not all or nothing – you keep whatever money you raise regardless of whether or not you reach your designated funding goal.
- Fees are the same whether you get fully or partially funded – donors may expect 100% results even if you get less than 100% funded.
Indiegogo
- Accepts all kinds of projects -can mean lots of competition for the attention of donors.
- Lower average funds raised than some other crowdfunding sites
- You, the campaign owner, can choose whether or not to go with all or nothing funding.
- Offers two plans (Flexible and Fixed), users can decide how this works. However, if you elect to go with the Flexible Funding plan (keep whatever you raise), you’ll be paying fees regardless of whether you reach your goal or not.
Some Other Options:
- Simple educational resources to help you along the way
- Opportunity for a TV spot on A&E
- 4% commission free plus 4% credit card handling fee (if you reach your goals)
- Nonprofit and charity focused
- Allows you to collaborate and fundraise as a team
- 9% platform fee and 2% + 30¢ payment fee
- Focused on startups
- Get connected with an industry veteran to help you succeed
- No fees for the startup or the investor