The Top 5 Online Fundraising Sites and How They Compare
Online fundraising makes it easier than ever for people to raise support for a cause or project—but choosing the best site for your fundraiser can be tricky. Ideally, the site you choose should cater to your specific fundraising needs, come with an existing community of people who have an affinity for your cause, and offer you relevant resources and help. In short, the site should multiply your efforts.
No two crowdfunding sites are exactly the same—they differ in fees, features, services, resources, and even the types of fundraisers they host. The following overview of the top five online fundraising sites can help you find the one that best fits your needs.
Fundly
With Fundly, either individuals or nonprofits can create fundraisers for a wide range of causes, including fraternities and sororities, LGBT, military, and politics. On Fundly, every donation will have a 4.9% platform fee deducted, as well as a payment processing fee of 2.9% plus 30 cents. One unique feature of Fundly is that you can sell t-shirts or other merchandise on your fundraiser.
FundRazr
Based in Vancouver, Canada, FundRazr hosts crowdfunding fundraisers for causes such as sports teams, schools, and nonprofits. FundRazr has three pricing models: the “Simply Free” model with no platform fee for organizers (supporters are asked for optional tips), the “Nearly Free” model in which organizers ask their supporters to cover fees, and the “Not Free” model with a 5% platform fee which is the best option for organizations such as charities. There is a third-party payment processing fee of 2.9% + $0.30 (depending on the payment processor you choose to use).
GoFundMe
Since 2010, GoFundMe has become a trusted leader in online fundraising. More than $15 billion has been raised on GoFundMe, and it’s the first and only platform with a donor protection guarantee: the GoFundMe Giving Guarantee. In the US, there’s no fee to start or manage your fundraiser on GoFundMe. However, there is one small transaction fee per donation that covers all your fundraising needs. Everything else goes directly to your cause, because that’s what matters most. A transaction fee of 2.9% + $0.30 is automatically deducted from each donation, so you never have to worry about paying a bill. GoFundMe is known for its customer service, and it has a Customer Care team that is available day and night.
Watch the video to learn more about how GoFundMe works:
Kickstarter
Kickstarter helps people bring creative and business projects to life, including new products, gadgets, and video games. If you’re launching a new product that doesn’t exist in the market, it’s hard to beat this site’s community of early adopters. But Kickstarter requires an all-or-nothing approach—you can’t withdraw any of the money unless you reach your fundraising goal by the deadline. If you do reach your goal, the site takes 5% of your funds off the top (the platform fee), in addition to third-party payment processing fees of 3% plus 20 cents per pledge (5 cents for pledges less than $10). Note also that you cannot raise funds for charity on Kickstarter.
Indiegogo
Indiegogo aims to help creators and entrepreneurs raise funds for bold endeavors and projects, such as independently produced films and music, or new tech products. Fundraising involves creating a set of different perks (often the products themselves) that supporters receive for different amounts given. One of Indiegogo’s strengths is its InDemand service, which helps product designers bring their creations to market after the fundraising phase is complete. If you’re looking for an end-to-end solution to raise funds and bring a product to market, they could be a great choice. In contrast to its main competitor Kickstarter, with Indiegogo you can choose between all-or-nothing fundraising and a more flexible approach—but in either case, the site takes 5% of your funds off the top, in addition to payment processing fees of 3% plus 20 cents per pledge.
Now take your pick
Now that you know how the top five online fundraising sites compare, you can choose the right platform with confidence. Once you’ve made a choice, you might find our fundraising tips and fundraiser ideas extremely useful.