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If your nonprofit is interested in fundraising through crowdfunding, here's where to get started.
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
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Erica SeppalaErica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
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Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
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Shannon VissersShannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
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The crowdfunding industry continues to grow and expand as a means of soliciting donations, product sales, and investments. Naturally, nonprofit organizations are now looking to get into the crowdfunding game, too.
However, not all crowdfunding websites are created equal. Some crowdfunders are purely for creative/business projects and cannot be used for nonprofit fundraising, while other platforms specifically cater to the nonprofit market.
That’s why your choice of a crowdfunding platform matters. We want to help you cut through the dizzying array of crowdfunding sites available by highlighting the crowdfunders best suited for nonprofit fundraising.
It’s important that you familiarize yourself with the laws regulating nonprofit fundraising in the state or states in which you will be operating. You may have to register your charitable nonprofit with the state before you begin soliciting donations.
If you’re looking to crowdfund for your nonprofit, familiarize yourself with information provided by the National Council of Nonprofits and go from there.
5 Best Crowdfunding Platforms For Nonprofits
A good platform for nonprofits should have low (or no) platform fees, easy setup and application processes, and tools to enhance your chances for successful fundraising. Start your search with these options.
Can collect funds without reaching your fundraising goal
Easy campaign setup
Cons
Poor customer support
Complaints of issues with withdrawing funds
Why We Chose GoFundMe For Best Nonprofit Crowdfunding
GoFundMe is one of the biggest crowdfunding campaigns in the world. While it's most known for medical and personal expenses, GoFundMe also allows nonprofits to raise funds on its platform. Best of all (and the reason we added GoFundMe to this list) is that there are no platform fees -- although processing fees for each transaction will apply.
To launch a charity campaign, the outfit you're fundraising for must be a 501(c)(3) nonprofit organization based in the US, UK, Australia, or Canada. It must also be registered in the PayPal Giving Fund database.
GoFundMe Fees
One of the highlights of GoFundMe is that it doesn’t charge any platform fees.
However, payment processing fees of 2.9% + $0.30 per donation will be charged.
GoFundMe Funding Duration
There are no limits to how long your campaign lasts on GoFundMe.
GoFundMe Terms
With GoFundMe, you can keep what you raise. You are not required to meet your goal to withdraw funds.
When you opt to withdraw funds, you’ll receive them in your account within two to five days of initiating the transaction. Be aware, however, that there have been some complaints about issues and delays when withdrawing funds.
Choose GoFundMe If...
You want to easily set up and launch your crowdfunding campaign
Why We Chose Mightycause For Best Nonprofit Crowdfunding
Mightycause is solely devoted to facilitating crowdfunding campaigns for small and mid-sized nonprofits. In addition to year-round fundraising and donations, unlimited campaigns, and integrations with other business apps and software, subscribers to Mightycause's Accelerate plan get team and event fundraising tools.
These tools include customizable websites, real-time leaderboards and metrics, easy onboarding, and team management tools. Mightycause also has a Pricing Guarantee that ensures payment processing rates are kept low.
Mightycause Fees
Mightycause has two monthly plans starting at $79/month. However, to take advantage of the team and event tools, you’ll need to upgrade to the Accelerate plan, which is priced at $119/month.
The average processing rate on Mightycause is 0.95% + $0.29. However, this fee will never exceed 1.99% + $0.49.
Mightycause Funding Duration
Your Mightycause subscription includes year-round fundraising. On either pricing plan, you can launch unlimited fundraising and P2P campaigns.
Mightycause Terms
Mightycause releases funds twice per month as follows:
EFT payments are sent on the 25th for funds raised from the 1st to the 15th of the same month
EFT payments are send on the 10th for funds raised from the 16th to the last day of the prior month
Funds will typically post to your banking account within two to three business days.
Checks can also be mailed for your payments. However, a $5 service fee applies.
Mightycause uses a Keep It All model, so you can collect your funds even if you don’t reach your goal.
Choose Mightycause If...
You want advanced team and event fundraising tools
You want to be on a platform that’s specialized for nonprofits
Why We Chose FundRazr For Best Nonprofit Crowdfunding
FundRazr hosts crowdfunding campaigns for personal causes, business causes, and, yes, nonprofit organizations. The company also has a great reputation among both campaigners and donors. FundRazr is one of the few crowdfunding outfits that proudly links to its Trustpilot page. That should tell you something.
A regular FundRazr crowdfunding campaign — whether it be for a personal cause or a nonprofit — is free aside from payment processing fees. Nonprofits may save even more with reduced payment processing fees.
FundRazr Fees
FundRazr does not charge platform fees. There are payment processing fees of 2.9% + $0.30 per payment. With FundRazr’s Fee Recovery plan, you can potentially save on these fees by asking your donors to cover payment processing costs.
Reduced rates may also be available for your nonprofit.
FundRazr Funding Duration
There are no limits to the duration of your campaign on FundRazr.
FundRazr Terms
FundRazr offers both Keep It All and All or Nothing campaigns.
Funds from Keep It All campaigns are released immediately and are deposited to your account based on the schedule you’ve set up within your account.
Funds from All or Nothing campaigns are not released until you’ve hit your funding goal. Once the goal is reached, the process that applies to Keep It All campaigns applies.
You will not be charged if your goal is not met with an All or Nothing campaign.
Choose FundRazr If...
You want to work with a crowdfunding platform that has a great reputation
You want reduced payment processing fees and no platform fees
Why We Chose Indiegogo For Best Nonprofit Crowdfunding
Indiegogo's focus is now primarily on serving individuals and businesses, though it still supports nonprofit crowdfunding campaigns. While not as popular as some of the other options on our list, Indiegogo connects you to a wide range of supporters from around the globe.
Though Indiegogo does not offer nonprofit-specific crowdfunding features, it provides guidance on how to set up your nonprofit campaign. Customer support is also great and has gotten praise from many users. Getting set up is easy, and there's even an option to continue raising funds after your campaign has ended. Unfortunately, Indiegogo does not waive or lower its platform fee for nonprofit campaigns.
Indiegogo Fees
Indiegogo charges 5% of the total funds raised at the end of your campaign. Indiegogo frequently has discounts to lower these platform fees, so make sure to check the website for current offers.
In addition to your platform fee, you will pay transaction fees of 2.9% + $0.30 per pledge.
If you want to continue raising funds after your campaign, you can sign up for InDemand, Fees for this service are 5% to 8% of funds raised.
Indiegogo Funding Duration
The maximum run time for Indiegogo campaigns is 60 days.
Indiegogo Terms
Indiegogo will send funds to your bank account within 15 business days following the completion of your campaign.
An additional three to five business days should be allowed for the funds to hit your account.
Choose Indiegogo If...
You want to work with a funding platform that has excellent customer service
You want the ability to extend your fundraising efforts after your campaign has ended
Not as much traffic as other crowdfunding platforms
Website can be glitchy
Why We Chose Fundly For Best Nonprofit Crowdfunding
Fundly is a platform that specializes in fundraising campaigns for individuals and charities. While not as well-known as some of the bigger names in crowdfunding, Fundly has a lot going for it.
A standout feature is its integration with Facebook, making it easy to share your campaign across social media without links or redirects. Other great features include real-time analytics, built-in event management, and a mobile app that makes it easy to set up and track your campaign. Best of all, there are no platform fees.
Fundly Fees
Fundly does not charge platform fees.
You will, however, have to pay processing fees of 2.9% + $0.30.
Fundly Funding Duration
There are no limitations on the length of your fundraising campaign on Fundly.
Fundly Terms
Fundly has a Keep It All model that allows you to withdraw funds even if you don’t reach your goal.
Funds are sent immediately based on your set payment schedule (daily, weekly, or monthly). Once funds are released, you should receive them within one to two days, but this timeline may vary based on factors such as your location, campaign status, and policies of your bank.
Choose Fundly If...
You want to easily share your campaign on social media
You want a platform with a strong mobile app for on-the-go fundraising
Why We Chose Donorbox For Best Nonprofit Crowdfunding
Donorbox is an excellent donation platform for smaller nonprofits, particularly those looking to add a simple donation button to an existing website. With a low platform fee, support for weekly, monthly, quarterly, and annual recurring donations, and excellent donation forms, Donorbox is definitely worth your attention.
Large nonprofits might prefer an all-in-one platform with a built-in donor management CRM and a branded dashboard, but the nonprofit looking for an easy-to-use low-fee donation option will find a lot to like. Donorbox lets you easily integrate with your website as well as with a wide range of software add-ons.
Donorbox Fees
Donorbox’s platform fee varies based on the plan you select. If you choose the Standard plan, you don’t pay a monthly fee. However, you do pay a 1.75% platform fee.
You can get a reduced platform fee of 1.5% on the Pro plan. However, you will also have to pay a monthly fee of $139. This plan does include additional features and integrations not available on the Standard plan.
Additional fees apply for integrations and add-ons, such as Text-To-Give and migration of recurrent donors.
Donorbox Funding Duration
There are no limitations on how long your campaign runs on Donorbox.
Donorbox Terms
Donorbox has a Keep It All model that allows you to keep all funds even if your goal isn’t met.
The timing in which you’ll receive your funds varies by payment processor. Donorbox never holds your funds and releases them as donations are made.
Stripe donations are typically available within two business days, although your first transaction may take as long as seven business days.
PayPal donations will typically hit your account in two to three days.
ACH payments may take as long as five business days.
Choose Donorbox If...
You want an easy-to-use platform that is scalable
You want a customizable option that includes everything from donation buttons to Text-To-Give
We spend hours researching and evaluating each crowdfunding platform that we review at Merchant Maverick, placing emphasis on key characteristics to generate our product ratings.
Weighted Rating Breakdown
Terms & Fees 25%
Project Qualifications 25%
Application Process 25%
Sales & Advertising Transparency 10%
Customer Service 10%
User Reviews 5%
When rating crowdfunding platforms, we use a rubric that looks at terms and fees, project qualifications, application process, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating.
Terms & Fees: 25% of the total star rating
Project Qualifications: 25% of the total star rating
Application Process: 25% of the total star rating
Sales & Advertising Transparency: 10% of the total star rating
Customer Service: 10% of the total star rating
User Reviews: 5% of the total star rating
Each section is further broken down into granular, weighted subsections, in which we look at specific attributes, such as campaign durations, supported project types, time to funding, application processing times, and platform fees. Learn more about how we rate crowdfunding platforms.
FAQs About Crowdfunding For Nonprofits
How does crowdfunding work for nonprofits?
Crowdfunding for nonprofit organizations works similarly to crowdfunding for individuals and businesses, except that most US states have laws that require charitable nonprofits to register with the state before soliciting residents of that state.
Your organization will also have to be registered as a 501(c)(3) nonprofit charity to use most crowdfunding platforms, though some will let you fundraise as a nonprofit without this designation if you find an organization willing to act as your fiscal sponsor.
Contact the crowdfunding platform you intend to use with any questions about using the company’s website to solicit donations and consult an attorney to determine the state nonprofit registration requirements you’ll need to comply with.
If your 501(c)(3) status is still pending, you can try finding an organization willing to act as your fiscal sponsor, in which case you may be able to crowdfund as a nonprofit without a 501(c)(3) designation.
You’ll also want to be sure that your nonprofit is registered in the states where you’re going to be soliciting donations. Consult legal experts to determine the states in which you’ll need to be registered.
Can my nonprofit use Kickstarter or GoFundMe?
Your nonprofit can absolutely use GoFundMe to raise funds. However, Kickstarter does not support charitable fundraising, so except under very specific circumstances (i.e., you’re selling something to support your organization, but you’re not donating any of the funds raised), Kickstarter isn’t for nonprofit use.
Additional Resources For Nonprofits
Crowdfunding for nonprofits isn’t as straightforward as crowdfunding for a business or a personal cause.
Thankfully, modern crowdfunding platforms make it easier than ever to navigate the legal complexities to help nonprofits raise money, whether you’re an officer of the nonprofit or not. Just be careful and make sure you’re doing everything by the book!
For more information on launching and running a nonprofit organization, visit our new nonprofit hub for a wide array of helpful resources.
Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.
View Erica Seppala's professional experience on LinkedIn.
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The vendors that appear on this list were chosen by subject matter experts on the basis of product quality, wide usage and availability, and positive reputation.
Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
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