When it comes to fundraising, can asking for smaller donations from your support base generate more money in the long run? This is the premise of crowdfunding, a model that has gained quite a bit of attention in the nonprofit sector of late. By definition, the approach operates on the generosity of a large pool of people contributing mere percentages of the total necessary to launch a project or initiative. Favorable overhead costs rank among the many appealing factors of crowdfunding, and other benefits include the efficiency and speed of the process.
Because of the rapid rise in interest in crowdfunding, multiple platforms have emerged, and although they share the same conceptual backbone, there exists a fair amount of differences between them. Nonprofit leaders and people interested in launching a new charitable endeavor should weigh their goals against the available options in the marketplace, as well as the ways in which they want to reach out to the public. The following is an introduction to the various crowdfunding platforms out there.
Users of this platform build a free profile, share it across social media and other channels, and start collecting donations. The company also offers website integration and develops tax reports for nonprofit compliance needs.
The HopeMob site has amassed more than 10,000 members, and one of the largest current campaigns is to raise money for residents of Flint, Michigan.
3. Start Some Good
With a global support team, Start Some Good assists its users by helping develop strategies for optimal fundraising. The company charges a 5 percent fee only if the project total is reached. Since its inception, Start Some Good has raised more than $5 million for various causes.
Viewed as the top fundraising site in the world, GoFundMe offers both personal and charity fundraising campaigns. Users can start their own projects or select from an expansive list of already operating nonprofit organizations, such as the American Cancer Society.
CrowdRise allows users to create a fundraiser in less than a minute, and it hosts more than 1.5 million charities. Along with Salesforce integration features, users collect $95 or $97 of every incoming $100, depending on the pricing option selected.
Indiegogo creates a sense of urgency with its platform by placing a timeframe on the fundraising goal. Nonprofit organizations benefit from discounts with this company, and multiple account types are available.
The crowdfunding site FirstGiving, which has partnered with such trusted organizations as the Special Olympics, combines peer-to-peer fundraising techniques with its model, which includes a free start up. In addition, the platform allows users to customize and manage thank you e-mails, collections, and registration information.
Highlighted on the A&E television network, RocketHub helps social leaders raise money with its international platform. The company only charges fees if the group or organization reaches its financial goal during the course of the campaign.
Developed for spreading social good, CauseVox offers a considerable amount of customization compared to competitors. The crowdfunding platform also allows customers to develop as many sites as they would like, though rates still apply for each.
The Razoo platform has facilitated the creation of tens of thousands of fundraising sites that together have generated more than $450 million. Depending on the needs of the user, three different tax settings are available to help meet overall objectives.
Since the platform launched, Causes has amassed a community of millions of users from 156 countries. The company offers a social media app, Brigade, which allows users to find more people to support their cause.
Based in England, the Buzzbnk crowdfunding model has successfully funded 137 projects as of 2016. The company has supported clients whose focuses range from education to social welfare.
The Pozible website features the motto, “We crowdfund awesome stuff.” At a success rate of 56 percent, the company has raised more than $40 million for a variety of causes and dreams. Users may select from three cost tiers, depending on goals and performance.
Established exclusively for the nonprofit sector, Crowdster offers an online and mobile platform to assist its clients. The company formed in 2007 and has continued to amplify its technological capabilities. At present, Crowdster helps Save the Children, the Cystic Fibrosis Foundation, and Autism Speaks.
Classy equips users with a number of modern tools, such as access to MailChimp and Google AdWords. Nearly 2,000 social organizations have turned to Classy, and many have exceed their fundraising goals. Successful campaigns include Pencils of Promise, which will build new schools in Africa.
One of the main components of Fundly is its aggressive mobile application approach. By enabling smartphone users to contribute to causes they support, the platform has facilitated multiple successful campaigns, such as providing food for those in need in Ferguson, Missouri.