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 an accidental fire burned through the third floor and attic of an apartment complex, Colleen Fallon wanted to help her friends the Moore Family. After researching different crowd funding platforms, she chose FreeFunder because FreeFunder passes the entire donation on to the Campaign Creator, instead of taking 5% or more as other platforms do.
The Moores were unharmed in the fire, but many of their belongings were lost and they needed help getting resituated. Colleen set a goal amount of $1,482. Within 16 hours, the FreeFunder campaign had blown past that goal, already raising $2,370, as mentioned in this news article. By the end of the campaign, the fundraiser raised more than 300% of the goal amount, providing the Moore Family with $5,165 to help them rebuild.
"What an amazing thing to wake up to! ...In only 11 hours of this being created you all have seen the goal line and then hurdled it! ...Thank you to all who have donated and shared this link, everything little bit helps. I'll be seeing Marcus and Heather this weekend and can't wait to give them some hope for the future because of everyone who has shown compassion. Cheers to all!" - Colleen Fallon