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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 Tara's dog Vishnu was diagnosed with stage 2 malignant oral melanoma and required major surgery to save his life, she created a FreeFunder fundraiser to help raise the money she needed. She broke down the specific costs for treatment, and let everyone know that the vet was very confident the procedure would be a success if the money was raised in time.

In only 24 hours, the goal of $8,500 was already met. In the end, Tara raised $9,575 to get Vishnu the medical procedure he needed.

"My heart is bursting and my mind blown... I can't tell you what it was like to see these wonderful, generous donations come in and to feel hope rise -- and then suddenly see the hyperspace lights flashing." - Tara R

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