How Much Does Crowdfunding Cost?

by Stacey Williams

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: 

Platform fee: 5% on all funds raised
Payment processing: 3% + $0.30
More info:

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: 

Platform fee: 5%
Payment processing: 2.9% + $0.30 per donation
Pricing info:

Platform fee: 4.9%
Payment processing: 2.9% + $0.30/transaction
Pricing info:

Platform fee: 5% for personal fundraising, 4% for charity fundraising 
Payment processing: 2.9% + $0.30 
Pricing info: 

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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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