Are you a part of a nonprofit organization looking to get into the explosive crowdfunding industry?
Crowdfunding is an amazing option for nonprofits of all types to raise funds from the crowd, increasing your organization’s outreach and revenue generation.
In this article, we’re taking you through five of the best nonprofit crowdfunding sites that you can capitalize on in 2021.
You’ll come away with an understanding of which charity-based crowdfunding platform is the perfect fit for your nonprofit endeavor so that you can acquire the funds you need to change the world!
Let’s get started.
You’ve probably heard the name GoFundMe before, and for good reason. It’s the world’s top crowdfunding platform (yes — even larger than Kickstarter and Indiegogo), pulling in over $9 billion in funding since the site’s inception in 2010.
GoFundMe is best known for campaigns related to personal expenses and tragedies. However, registered charities and 501(c)(3) nonprofit organizations in the US, UK, Australia, and Canada are also in on the action.
A big benefit of GoFundMe is that there is no platform fee. While they used to take 5% of all money raised, they’ve done away with that.
Of course, your fundraiser will not be totally fee-free. The platform charges a processing fee of 1.9% + $0.30 per donation.
The biggest advantage of GoFundMe is potential donor familiarity. If you run your campaign on the platform, people are going to be at least generally aware of what it’s all about.
Check out this video for some incredible tips for launching your nonprofit campaign on GoFundMe.
Mightycause is an especially exciting option for nonprofit fundraising because the platform is specifically designed to meet the needs of small to midsize nonprofits.
Generally, your organization will have to be registered as a 501(c)(3) or public charity organization in the US. But if you’re based outside the US or you’re yet to receive your 501(c)(3) status, you can find an organization to act as your “fiscal sponsor.” More information on that is here.
Mightycauses’ processing fee is smaller than GoFundMe (and most other platforms, for that matter) — they only charge 0.81% + $0.29 per donation on average.
And because the platform is centered around nonprofits, they provide you with tons of great resources for donor management and marketing.
Doctors Without Borders and St. Jude Children’s Hospital are just a few of the organizations that have gone on to raise big dollars with Mightycause. Your nonprofit could be next!
Especially for you Canadian nonprofits out there, Fundrazr is a great fundraising option. They hold one of the best reputations among both campaigners and donors thanks to their transparency and easy-to-use interface.
They’re also one of the few crowdfunding nonprofits that link to their TrustPilot page, where you can find hundreds of raving reviews.
Fundrazr takes a larger processing fee: 2.9% +$0.30. But the idea is you get what you pay for, including best-in-class social sharing functionality — which is a key element to every nonprofit crowdfunding campaign.
The platform also offers Standard and Pro plans, which offers opportunities for things like:
- Recurring donations
- Subscription micro-projects
- Advanced analytics
- Sponsored campaigns
And much more. With these plans, you’ll pay a 5% platform fee — so we only recommend them to folks who have significant experience fundraising or have a large following.
FirstGiving takes a different approach to nonprofit crowdfunding. Unlike the platforms listed above, there’s no “free” fundraising option — you’ll be required to subscribe to one of their premium plans, which costs $600 and $1,800 a year with a 5% platform fee.
Clearly, FirstGiving is costlier than other nonprofit fundraising platforms.
So why do people turn to them?
Mainly, it’s because of all the functionality they provide that is specifically tailored to nonprofit organizations. From P2P giving days to online auctions to donor management and much more, it’s everything you’ll need to raise funds from the crowd online.
Before you go with FirstGiving, make sure that your nonprofit has a dedicated following that is willing to show up right when you get started. You don’t want to be paying more if you can’t recoup those funds pretty quickly!
Working with a small nonprofit? Donorbox might just be the crowdfunding platform for you.
This platform is specifically helpful for organizations looking to add a simple donation button to an existing website. They provide support for weekly, monthly, quarterly, and annual recurring donations with a low platform fee of just 1.5%.
Additionally, their donation forms are extremely donor-friendly.
Larger nonprofit organizations may prefer all-in-one platforms (like those listed above) that can provide donor management and a branded dashboard.
But for smaller teams that need basic functionalities and easy to use, DonorBox is definitely worth your attention!
Conclusions: Which Nonprofit Crowdfunding Site Should I Use?
Let’s break it down:
- GoFundMe – Best for reputability
- Mightycause – Best for team management
- Fundrazr – Best reputation
- FirstGiving – Best for large non-profits
- DonorBox – Best for simple fundraises and small nonprofits
At the end of the day, the decision is up to you. GoFundMe is always a safe bet, but looking into some of the other platforms that might be more tailored to your specific needs deserves at least some of your attention.
We hope that this article has been helpful for you!
Want more insights from the experts here at CrowdCrux? Check out our great educational resources for you:
- GoFundMe Cash Machine Course: A to Z guidance on launching a successful campaign on GoFundMe. The only nonprofit crowdfunding guide you’ll ever need.
- Nonprofit Fundraising Hacks Book: Discover all the insider tips and tricks to engineer a campaign that competes with the big guys.
- Nonprofit Crowdfunding Explained Book: Find out how nonprofit fundraising can go to work for your organization on a large scale.
Cheers to your upcoming campaign! Go out there and change the world. We’re rooting for you here at CrowdCrux.
The post 5 Best Nonprofit Crowdfunding Sites – 2021 appeared first on CrowdCrux: Crowdfunding Demystified.
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