Online Crowdfunding for Nonprofits

What is Crowdfunding?2016-03-30 09.09.10

Crowdfunding refers to any effort to raise money through donations from a large number of people. Crowdfunding websites allow individuals, organizations, and businesses to reach a wider audience in order to obtain donations and support. Crowdfunding websites also give individuals an easy way to contribute to their favorite organizations.

Why Should Nonprofits Use Online Crowdfunding?

There are numerous benefits to using online crowdfunding. First, it’s accessible to anyone with internet access. This is beneficial for organizations looking to expand their donor base or simply to make it easier for existing donors to give. Second, it’s fairly easy to start an online crowdfunding campaign. With crowdfunding websites (like Kickstarter and Indiegogo) on the rise, it’s becoming easier to create and maintain crowdfunding platforms. And third, online crowdfunding also works as an outreach platform and marketing tool.

Which Online Crowdfunding Website is the Best?

This isn’t a simple question. Different crowdfunding websites offer different benefits and services. There are a plethora of different websites but it’s important to understand how much of the donations will make it to your organization. Most crowdfunding websites charge a “platform fee,” which is charge for using their website. Most crowdfunding websites also charge a “credit card payment fee” which goes to the third-party payment processors (like Paypal).

Below are 5 popular crowdfunding websites with their associated fees:


5% : Platform fees

3% + 30¢ : Credit Card Payment Fee


4.9%: Platform Fee

2.0% + 30¢ : Credit Card Payment Fee

First Giving

5.0% : Platform Fee

2.5% : Credit Card Payment Fee

$500 : Subscription Yearly Subscription


5.0% : Platform Fee

2.9% + 30¢ : Credit CardPayment Fee


4.9% : Platform Fee

3% : Credit Card Payment Fee

This is my no means an exhaustive list. However, these may  be a good place to begin your crowdfunding journey.


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