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Click a box below or scroll down to read about crowdfunding, the fundraising method that individuals all around the world are using to raise money for various projects, expenses, and life events.
Crowdfunding Basics
How and Why You Should Crowdfund
Tips for Crowdfunding
Top Crowdfunding Websites
Start a Campaign
Crowdfunding is a technique that harnesses the power of social sharing and personal networks. Individuals ask for donations from their friends, family members, and peers and can create an online crowdfunding page to tell their story, upload photos, and accept donations.
The Main Types of Crowdfunding
Donation-Based
Donor platforms let you raise money without any obligations to investors. Contributions to your cause are donations or gifts with no strings attached. Common donation-based causes include philanthropy, medical expenses, and disaster-relief.
Equity-Based
Equity crowdfunding is the process by which an individual is able to invest in an early-stage company in exchange for shares in that company. This type of crowdfunding is best suited for businesses that are established but in need of capital for expansion.
Rewards-Based
Rewards-based fundraising is most commonly associated with platforms like Kickstarter and Indiegogo. Through the rewards system, individuals and businesses raise money by offering a product or service in exchange for a campaign contribution.
What Type of Crowdfunding Will This Guide Focus On?
The majority of the information covered in this guide will be about donation-based crowdfunding. However, much of the advice mentioned is relevant across all types of crowdfunding.
Popular sites like Fundly, YouCaring, and GoFundMe all fall into the “donation” category.
While the basic premise of a donation-based platform is that contributions are in fact gifts, many of the most popular crowdfunding websites still provide built-in tools for organizers to offer incentives, like t-shirts and water bottles. So, there’s a rewards element mixed in as well.
For more on the how donation platforms work, check out this video. And if you’re ready to start your own campaign, click here.
Top Crowdfunding Causes
One of the best things about crowdfunding is that you can use it to raise money for virtually anything.
If you have a creative project that you need to raise money for, crowdfunding can help.
If you recently lost a loved one and need to cover funeral costs, you can use crowdfunding.
If you want to support a particular charity or cause, you can raise money and awareness with crowdfunding.
We’ve listed 18 of the most popular reasons that people turn to crowdfunding to raise money. Each category will take you to a specific fundraising page with more information about that particular cause, project, or event.
Have fun exploring how you can use crowdfunding to raise money!
- Animal Causes
- Clubs and Organizations
- Cancer Treatment and Awareness
- Entrepreneurial Projects
- Fraternities and Sororities
- Kids
- Medical Expenses
- Memorials and Funerals
- Military and Veterans
- Nonprofit Causes
- Political Campaigns
- Religious Causes
- Individual Fundraising Needs
- Runs, Walks, and Rides
- Schools and Education
- Sports Teams
- Trips and Adventures
- Weddings and Honeymoons
Why and How You Should Crowdfund
The Benefits
- RAISES MONEY QUICKLY: With the right crowdfunding platform and ample promotion, a crowdfunding campaign has the potential to raise quite a lot of money in a very short amount of time. In fact, many campaigns reach their goal in just 40 days!
- RAISES AWARENESS: Crowdfunding can help you spread the word about an injustice, problem, disease, or social issue while you raise money. It’s an effective way to educate your peers. The more people you know, the more willing they’ll be to give!
- BRINGS PEOPLE TOGETHER: People love to come together under one common cause. It gives them a sense of purpose and empowers them to raise money for something they care about. Crowdfunding brings people together for just that!
The Process
- 1. Pick a platform.
- 2. Set up your campaign.
- 3. Promote your fundraiser.
- 4. Track your crowdfunding campaign’s progress.
- 5. Thank your supporters for their donations.
The Numbers
$88
Average crowdfunding
campaign donations.
$34000000000
Global amount raised by
crowdfunding campaigns.
$7000
Average amount raised by
successful crowdfunding
Ready to get started?
Create your crowdfunding campaign, or learn more.
Crowdfunding Best Practices
1. Post Regular Updates:
Your donors want to know the progress of your crowdfunding campaign.
When you have updates or reminders, post them on your crowdfunding campaign’s page to keep supporters in the loop.
Posting updates also shows that you’re invested in your campaign.
Updates don’t need to be long. It can be something like, “We’ve reached half of our goal! Thanks, everyone!”
The key is to interact with your donors and make them a part of your campaign.
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2. Use Images and Videos:
A crowdfunding campaign can’t survive on just words alone.
You should definitely include images and videos that are related to the cause, project, or event that you’re raising money for. This helps donors connect to your cause and see what their donations are going toward.
You can create a schedule and post an image or a video once a week or once every few days.
Including media will further engage your supporters and show them the results or progress of their donations.
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3. Offer Incentives:
Offering incentives works better for certain types of crowdfunding campaigns over others.
They typically fit well with crowdfunding campaigns that are set up to raise money for entrepreneurial and artistic projects, trips and adventures, or sports teams or clubs.
You can offer different types of incentives for different giving levels.
For example, if you’re raising money for your school band, a $50 donation might correspond with discounted tickets while a $150 donation might result in a private concert.
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4. Share via Email and Social Media:
If you want to raise money for your cause, project, or event, you have to get the word out!
People won’t know about your crowdfunding campaign unless you tell them about it and ask them for donations. Email and social media are the most effective ways to accomplish this.
Post regularly, but don’t over do it!
Your donors don’t want to feel pressured into giving to your fundraiser. Instead, develop a promotion schedule that updates followers every week or so. That way, you can keep people in the loop and ask for donations!
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Helpful Crowdfunding Resources
- Crowdfunding Updates: Tips to Keep Donors in the Loop
- Tips for Crowdfunding Photos: Generate Interest and Raise Money
- Sharing Your Crowdfunding Campaign: 3 Terrific Techniques
- How to Ask for Donations
- 7 Incredible GoFundMe Alternatives
Examples of Crowdfunding Campaigns: A Few Success Stories
View Campaign
Supporting Women in Tech
This campaign to support the women in tech at Indiana University raised an impressive $27,013, which was more than $2,000 over the fundraising goal.
View Campaign
Gianna’s Fight Against Leukemia
Thanks to the support of 361 donors, this fundraiser more than doubled their initial goal, raising a grand total of $26,466 to help Gianna fight Leukemia.
View Campaign
A Ray of Hope
After setting out to raise money to build a center for special needs children in India, this fundraiser managed to bring in an astounding $259,336 for the cause.
Ready to get started?
Create your crowdfunding campaign, or learn more.
Top Crowdfunding Platforms
Our Top Picks
- Fundly
- Kickstarter
- Bonfire
Fundly
Fundly is the ideal platform to launch your crowdfunding campaign on. With Fundly, you get to keep everything you raise. Plus, you can set up and share a visually appealing campaign in minutes!
Kickstarter
Kickstarter is one of the biggest names in crowdfunding for a reason. It is a great choice if you’re raising money for a business venture or creative project and have a product or service to fund and sell.
Bonfire
Bonfire is the perfect combination of product fundraising and crowdfunding, allowing fundraisers to collect contributions in exchange for custom t-shirts. It’s an excellent incentive-based fundraising model.
Fundly
Fundly is the ideal platform to launch your crowdfunding campaign on. With Fundly, you get to keep everything you raise. Plus, you can set up and share a visually appealing campaign in minutes!
Kickstarter
Kickstarter is one of the biggest names in crowdfunding for a reason. It is a great choice if you’re raising money for a business venture or creative project and have a product or service to fund and sell.
Bonfire
Bonfire is perfect combination of product fundraising and crowdfunding, allowing fundraisers to collect contributions in exchange for custom t-shirts. It’s an excellent incentive-based fundraising model.
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