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.
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