Crowdfunding is donation-based fundraising for businesses or creative projects, typically via an online funding portal. Some but not all crowdfunding projects offer contributors rewards, which may differ based on the amount of money donated. Rewards can include copies of a creative work, products created with the funding, special or personalized incentives (such as autographed works or promotional merchandise), or public recognition.
In equity crowdfunding, a crowdfunding approach is used to raise investment capital and contributors receive equity in the resulting business. Contributors may act as investors and receive shares directly, or the crowdfunding service may act as a nominated agent.
Donations and/or Rewards
There are two basic models provided for – some sites offer a choice between them:
- All or Nothing (AoN) – When the fund-raising period is over, money is only collected from the contributors if a pre-determined minimum amount of money has been pledged. If the goal is not met, no money is collected.
- Keep it All (KiA) – Whether the project goal is met or not, all of the funds collected (minus commission) are handed over to the entrepreneur. If he or she has insufficient funds to meet the objectives, then it is up to the recipient to refund them to the contributors.
Crowd Funding is growing fast!
Review the list of platforms available today.
|ArtistShare||KiA||Musicians||US||Has own record label.|
|CentUp||KiA||Ongoing transactions and Social Impact||US||Decentralized crowdfunding linked to specific pieces of content.|
|ClassWish||KiA||Education crowdfunding for school and teacher supplies||US||Allows tax-deductible support of any school and any teacher in the U.S.|
|CommonBond||KiA||Student loans||US||Funded by crowdsourcing and large investors.|
|Community Funded||KiA||Platform Creation for Universities, Nonprofits, and Faith-Based Organizations||US||Allows for white-labeled integration on existing websites|
|First Funder||KiA or AoN||Community based||US|
|FundAnything||KiA||Funding for any kind of project – business, creative, arts, personal, charitable.||US||Fundraising backed by major celebrities such as Donald Trump.|
|FundedByMe||AoN||Equity and rewards||Sweden, Finland, Norway, Italy, Germany, Denmark||Only platform offering equity and reward based crowdfunding in combination with European-wide cross-border investments.|
|FundRazr||KiA or AoN||Personal, charitable, entrepreneurial, creative, and political causes||Canada||Lets you embed your campaign on Facebook, blog or website using easy to use Widgets. Offers Live Chat and Personal Coaching.|
|Fundly||KiA||Personal, charitable, and political causes||US||Available as an app for a Facebook page. Charges a per credit card transaction fee.|
|GiveForward||KiA||Online fundraising website to raise money for medical expenses.||US||Provides personal fundraising coaches.|
|GlobalGiving||KiA||Nonprofit fundraising for registered organizations in 160+ countries||US, UK, Worldwide||Provides 501c3 equivalency for non-US organizations|
|GoFundMe||KiA or AoN||Non incentive-based crowdfunding website. Set up to allow for donations to personal causes and life events.||US||Provides 5-minute customer email support.|
|ICrowdFund||KiA or AoN||Donation and Reward||Ireland||Non-profit and individual crowdfunding with donation and reward options.|
|Indiegogo||KiA or AoN||Allows a broad range of projects||US|
|JustGiving||KiA||Social good causes and campaigns||UK||Non-profit and individual donation crowdfunding.|
|Ketto||KiA||Funding for any kind of project – business, creative, arts, personal, charitable.||India||Largest platform in India.|
|Kickstarter||AoN||Creative projects||US, UK, Canada, Australia, New Zealand, the Netherlands, Denmark, Ireland, Norway, Sweden, Germany, France, Spain, Italy, Austria, Belgium, Switzerland, Luxembourg||Highest funded projects to date|
|LaunchGood||KiA or AoN||Allows a broad range of projects||US, Canada, France, Russia, Brazil, and 15 other countries||Largely faith-based, focused on the worldwide Muslim community|
|Myfreeimplants||AoN||Cosmetic surgery||US||Focused on breast augmentations. International|
|Offbeatr||AoN||Pornography||US||Projects must first get enough votes from users before they are open for funding|
|Peoplefund.it||AoN||UK||Attached to Hugh Fearnley-Whittingstall|
|Piggybackr||KiA||Young children, students, and teams||US||Young students may raise money. Compliant with Children’s Online Privacy Protection Act|
|Planeta.ru||AoN or KiA||Allows a broad range of projects||Russia|
|PledgeMe||AoN||Allows a broad range of projects||New Zealand|
|PledgeMusic||AoN||Musicians||Spain, UK, US|
|Pozible||AoN||Creative||Australia, Singapore, Malaysia, US||Bitcoin can be used, Self-hosting can be used, One-on-One help|
|Rally.org||KiA||Medical, educational, charitable, creative, entrepreneurial, and political causes||US, Germany|
|Tilt.com||KiA or AoN||Any goal||US||Offers both a consumer product and enterprise solution for brands.|
|YouCaring||KiA||Medical expenses, memorials and other personal and charitable causes||US, UK, Western Europe||Does not charge any fees, other than payment processing|
|Weeve||KiA||Nonprofits||Canada||Site operates “freemium” model without transaction fees|
Some services invite people to donate to projects for the pleasure of giving. Philanthropy based services usually have other benefits such as tax credits or rebates.
|Focus||Country||Notes||Number of Donors||Donated Sum|
|Experiment.com||AoN||Scientific research||US||Formerly called Microryza||19,266||$5 Million|
|Givology||AoN||Education in developing countries||22,443||$500,969|
|Kopernik||AoN||Distributing basic technologies in developing countries|