How Much Does Crowdfunding Cost?
During the last decade, crowdfunding has become an extremely popular way to raise funds. It has launched products, provided funds for natural disaster relief, supported personal causes and helped cover medical expenses. The possibilities are unlimited.
It's usually free to create a campaign. However, platform fees can vary according to the amount raised. Factoring in these costs is very important when setting fundraising goals because fees are automatically deducted.
Crowdfunding Platform Fees
Here’s a breakdown of what it costs to raise funds at several well-known crowdfunding sites.
Platform fee: 0% - It's free
Payment processing: 2.9% + $0.20
More info: https://www.freefunder.com/faq/
Indiegogo
Platform fee: 5% on all funds raised
Payment processing: 3% + $0.30
More info: https://grow.indiegogo.com/how-it-works/
Kickstarter
Platform fee: 5% (There are no fees if your campaign is not successful.)
Payment processing: 3% + $0.20 per pledge
Pledges under $10 have a discounted micropledge fee of 5% + $0.05 per pledge
Pricing info: https://www.kickstarter.com/help/fees?ref=faq-basics_fees
GoFundMe
Platform fee: 5%
Payment processing: 2.9% + $0.30 per donation
Pricing info: https://www.gofundme.com/pricing
Fundly
Platform fee: 4.9%
Payment processing: 2.9% + $0.30/transaction
Pricing info: https://fundly.com/pricing/
Razoo
Platform fee: 5% for personal fundraising, 4% for charity fundraising
Payment processing: 2.9% + $0.30
Pricing info: https://www.razoo.com/about
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When a beloved veterinarian from Butler, PA received news that a portion of his treatment costs for a life-threatening disease would not be covered by Boston Medical Centre it was time to turn to crowdfunding. Aubrey Kornrumpf, the office assistant for Dr. Denis Daman, created a free fundraising campaign on FreeFunder. Aubrey set a goal of $8,000, which was enough to cover the housing costs that Dr. Daman was suddenly expected to cover.
Within 5 days, the campaign had already raised more than $10,000. By the end of the campaign, more than $14,000 was raised to cover the housing costs as well as food and incidentals.
"Thanks to your generosity, Doc was able to begin his treatments on September 15th... Because of the beautiful hearts of every person who donated here, Doc and Mrs. Daman were not only able to get the housing he needed, but his daily transportation needs are now being met ...In short, those who donated here played a very real part in saving Dr. Daman's life, and repaying the debt to him for his life's work saving others. Needless to say, Dr. Daman is completely overwhelmed by this outpouring of support, and by the realization that his life's work has meant so much to so many. Thank you all, so very much." - Aubrey Kornrumpf