Why FreeFunder Beats GoFundMe For Fundraising

by John Symonds
If you've ever run or donated to a personal crowdfunding campaign there’s a good chance you’ve heard of GoFundMe. They are by far the largest personal crowdfunding site, raising several million dollars every day through the hundreds of thousands of active campaigns on their site.

But does the fact that GoFundMe is the biggest site make it the best? We think not. Although the front pages will show extremely successful campaigns, you don't see the tens of thousands of unsuccessful campaigns that raised $0 buried deep in the site. And being on a big site doesn't actually help your exposure, as some might expect. Rather, you're now in competition against those hundreds of thousands of other campaigns, and unless you go viral on your own you’re not going to be on that front page.

The reality is that in order for a personal crowd funding campaign to be successful it's going to be largely dependent on your own network of friends and family. Occasionally there are campaigns that get picked up by news outlets or appeal to a broad audience, and those can raise significant amounts from strangers, but even then it all starts with your close personal network in the beginning. The platform itself doesn't make a difference in your campaign’s success, only the campaign itself and your own efforts determine whether or not the fundraiser will work. For more information about what makes a campaign successful or not, please see "Why Your Personal Crowdfunding Campaign Will Make $0."

So, given that the particular site you're on does not determine the success of your fundraiser, how do you choose the best site to use? Let's compare a couple of key features that make FreeFunder a much better choice.

No Platform Fee!
First, FreeFunder does not charge a platform fee. GoFundMe takes 5% of every donation made to your campaign. That's on top of the transaction fee charged by the payment processor, which is typically 2.9% + $0.30 and is unavoidable for anyone accepting credit cards (including FreeFunder). So, apples to apples, FreeFunder charges the fundraiser 0% and GoFundMe charges 5%.

We Donate!
Second, FreeFunder is the only crowd funding platform that will actually donate to your fundraiser based on shares. We know how important it is to get the word out to your personal network, so we donate $20 to your campaign when you reach 100 Facebook Shares, and another $50 when you reach 500 Facebook Shares. This encourages you to share, but also encourages your friends who may not be able to contribute financially to share as well - this real-world incentive to share can make a HUGE difference in how well your campaign does. GoFundMe does not provide this incentive, only FreeFunder does.

You might be wondering, "How does FreeFunder stay in business if they don’t charge a fee and they actually donate to fundraisers on their site?" In true crowd funding fashion, FreeFunder relies on the voluntary donations of contributors to keep the lights on. For example, if someone donates $20 to your campaign, they have the option to donate $1 (or less, even zero) to FreeFunder as well. In most cases, this is no problem for the person donating, and they willingly make the donation. This way that original $20 goes entirely to the fundraiser, instead of $19 which would happen with GoFundMe.

Over time, this difference is significant! $1 doesn't sound like much, but if you raised $10,000 you're talking about losing $500 that was intended for your fundraiser. Keep that extra 5% by creating your fundraiser on FreeFunder, and even get bonus cash from FreeFunder based on Shares!
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FreeFunder Works!

When Nancy Dear hit some rough times and needed help in order to pay her rent (both personal and for her hair salon), she set up a FreeFunder campaign as a last resort. Friends and community members starting pitching in immediately. Nancy needed $2,500 in order to get caught up, and after donations came in from 59 people in only 2 weeks, she ended up raising $2,655.

"Yesterday was particularly rough, but I made it through, got a hefty pile of sleep, and woke up this morning to the beautiful miracle of community support! THANK YOU THANK YOU THANK YOU!!! You have saved my business baby, saved my home, saved me. I LOVE YOU. HAIRPARTY LOVES YOU. YOU ARE AMAZING. " - Nancy Dear

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