The Best Crowdfunding Sites
Crowdfunding is a collective action that helps people raise money to achieve their goals. Although the term, crowdfunding, is relatively new, the concept of relying on community support to fund projects is a well-known way to accomplish goals. For example, the school bake sale to raise money for a new roof is crowdfunding. Technology enables people to connect with a larger group of supports and the crowdfunding industry has grown over the last few years. Based on the growth of crowdfunding, there are now different ways to raise money.
Rewards-Based Crowdfunding. In this form of crowdfunding, supporters provide money to projects in return for a good or service. Often projects related to the arts (like music records or movies) are funding through rewards-based platforms. Before you commit, you should consult with crowdfunding and startups lawyers.
Kickstarter (KickStarter) – Read Review
Kickstarter is a leading crowdfunding platform and one of the more popular companies involved in crowdfunding. The platform targets creative projects and helps bring them to life. Founded in 2009, Kickstarter is very successful and has helped raise over $1.5 billion for individual creative works in that time. For project leaders, then Kickstarter take a small commission of funds raised. Supporters (or backers) are only charged when the project meets the funding goal.
IndieGoGo is a well-known crowdfunding platform that aims to activate an individual’s community to put an idea into action. Founded in 2008, IndieGoGo aims to democratize the way ideas are funded. As a rewards-based crowdfunding platform, IndieGoGo provides projects more flexibility to advance their idea than other platforms. IndieGoGo takes a small commission of funds raised. Project supporters are charged the amount contributed regardless if the project meets its funding goal.
Tilt, which was founded in 2012, is a relatively new rewards-based crowdfunding platform. The platform differentiates itself by offering more flexibility in fundraising options by appealing to groups, non-profits and projects. For project leaders, then Tilt requires individuals to link the Tilt project to a Facebook profile to reduce the risk of fraud. Additionally, Tilt charges the lowest commissions among the highly ranked crowdfunding platforms. Tilt provides technology to collect funds for group experiences and offers this collection service free of charge (although some credit card fees may apply).
In this form of crowdfunding, supporters provide money to a cause-related campaign. Often projects to raise money for disaster victims or hospital bills are funded through charitable platforms.
GoFundMe offers a crowdfunding platform for individuals and charities that need to raise funds. The GoFundMe technology makes it easy for project leaders to set up the campaign and easily share on social media to engage and connect with their community. GoFundMe also offers flexibility in setting campaign times (unlimited) and allows projects to keep all funds that are raised. For charities and cause-related campaigns, then every dollar counts and GoFundMe helps raise as much as possible. GoFundMe takes a commission on all funds raised, plus there are some additional fees for payments processing.
CrowdRise wants to help people give back, raise money for great causes and have fun along the way. The platform targets medical bills, volunteer trips and causes to build a community that was named as one of the Top 25 Best Global Philanthropists by Barron’s magazine. For supporters and project leaders, than CrowdRise offers a price guarantee to ensure causes receive $97 out of $100 raised. The 3% fee is the lowest among the highly rated crowdfunding platforms. Additionally, CrowdRise allows causes to keep all money raised and takes steps to engage and cultivate the CrowdRise community for all projects on the site.
Fundly aims to allow people to raise money for anything. The platform provides a host of fundraising categories that range from creative projects to non-profits to school sports teams. For supporters looking to engage with a cause that is personal to them, then the Fundly platform provides a unique and efficient way to find projects they want to support. For project leaders, then Fundly offers easy ways to share with their community on social media, along with allowing projects to keep all funds raised. Fundly takes a commission for money raised on the platform, along with some credit card processing fees.