Some of the top platforms for crowdfunding are Kickstarter, Indiegogo, Crowdfundly, and GoFundMe. Each site has its own features, fees, and benefits. From supporting creative projects to launching new products, the possibilities are endless.

Crowdfunding stands as a powerful tool to turn your ideas into reality. With the crowdfunding industry projected to add over $1 billion to the U.S. economy in 2024, it's clear that this innovative funding strategy has gained serious traction.

However, trying tons of crowdfunding platforms and finding one is difficult for you. And, we researched in-depth so you don’t have to!

In this guide, we’ll walk you through the essentials of choosing the right crowdfunding platform and highlight the top sites to help you get started on the path to success.

What Is Crowdfunding? How Does It Work?

Crowdfunding is a way to raise money by collecting small contributions from a large number of people.

Instead of trying to convince one investor at a time to support your business, crowdfunding lets you share your idea with a huge audience all at once. It’s a cost-effective way for nonprofits to connect with potential donors.

People who support crowdfunding projects (called "backers") usually get something in return for their contribution. These incentives can include:

• The ability to preorder a product and give feedback during its development
• Early access to buy a product, sometimes at a discount
• Special rewards like discounts, exclusive merchandise, or loyalty perks
• Exclusive content or updates
• A share of equity in the business

Crowdfunding platforms usually charge fees for hosting campaigns, processing payments, and managing transactions.

Although different platforms have unique features, fees, and audiences, the general process is similar:

• You create a campaign with a clear goal and deadline
• Share your story
• And rally supporters to contribute.

7 Best Crowdfunding Options for Nonprofits and Businesses

Here are seven top-rated sites that work best for crowdfunding. Each offers unique features to help you launch a successful campaign.

1. Kickstarter

Kickstarter is one of the most well-known crowdfunding platforms, especially for creative and innovative projects. Since its launch in 2009, Kickstarter has helped bring over 265,000 creative projects to life, raising more than $8 billion from millions of passionate backers worldwide!

The platform uses an all-or-nothing model, which means you only get the funds if you hit your fundraising goal; no pressure!

Pros

• Early supporters of a product or service get exclusive rewards for their contributions
• Ideal for creative projects like films, tech gadgets, and art
• Creators can build brand awareness and attract attention to their projects
• Massive, engaged community of backers
• Entrepreneurs can gain valuable market feedback
• Transparent fee structure

Cons

• No funds if the goal isn’t fully met
• Campaigners usually need strong graphic design skills or the ability to offer appealing rewards
• A 5% fee applies to projects that reach their funding goals.

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2. Indiegogo

Indiegogo is a versatile crowdfunding platform ideal for entrepreneurs, artists, nonprofits, and tech startups.

It was launched in 2008 and has since stood out for offering both fixed and flexible funding options. With fixed funding, you only receive funds if you meet your goal.

On the other hand, flexible funding allows you to collect donations regardless of whether you hit your target. Indiegogo also features InDemand, which enables campaigns to continue raising funds even after their official end date.

Pros

• Global reach across 200+ countries
• Flexible or fixed funding options
• Suitable for a wide range of project types, including nonprofits
• Pre- and post-campaign tools to support success.
• Helpful resources and support tools
• Strong social media promotion

Cons

• No pre-launch review is required for campaigns
• Some campaign types are restricted.

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3. Crowdfundly

Crowdfundly is an all-in-one platform that makes it easy for fans to support their favorite creators. The platform is designed specifically for creators. It offers fantastic features that meet the needs of creators, allowing them to engage directly with their fans.

Creators can use Crowdfundly to receive tips, offer memberships, run crowdfunding campaigns,  and sell digital or physical products through a built-in shop.

The platform's "Broadcast" feature helps creators connect with their audience by sharing updates and exclusive content.

Crowdfundly simplifies monetizing the projects with features like one-time donations, commissions, digital downloads, and subscription options. It's an easy-to-use, customizable platform that bridges the gap between creators and their supporters.

If you want to know about the best crowdfunding platform for artists to raise funds, we have a detailed article on that!

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Source: https://crowdfundly.com/pricing

4. Fundable

Fundable is a crowdfunding platform designed to help startups and entrepreneurs raise funds through rewards or equity. It's part of the Startups.com platform and allows businesses to either self-manage their fundraising or get support from the Fundable team.

Whether you’re offering rewards or equity, Fundable provides tools to connect with investors and track campaign progress.

Here we have a detailed guideline for you on how to execute a campaign successfully. Don’t forget to check it out!

Pros

• Offers both rewards and equity crowdfunding options
• Provides low fees for successful campaigns
• Strong customer support
• Ideal for entrepreneurs and small businesses.

Cons

• A flat monthly fee can be a burden for unsuccessful campaigns
• No funds will be received if the funding goal isn't met.

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5. Patreon

If you’ve been looking for the best membership-based crowdfunding platform for creators, Patreon is the right place for you. It’s a popular platform designed to help creators monetize their content and build a loyal community of supporters.

Unlike traditional crowdfunding sites that focus on one-time donations, Patreon allows creators to generate recurring income through monthly or per-creation subscriptions.

It's ideal for digital creators like podcasters, musicians, game developers, and videographers who want to offer exclusive content, perks, and behind-the-scenes access to their fans.

Pros

• Great for ongoing support and recurring revenue
• Perfect for subscription-based funding
• Flexible payment options: Credit card, PayPal, Apple Pay, Venmo
• Facilitates community building among fans
• Offers multiple integration options for diverse content

Cons

• Not suitable for one-off projects
• Building a strong patron base takes time
• Platform fees range from 8% to 12%.

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6. GoFundMe

Go Fund Me connects individuals, nonprofits, and organizations to raise funds for personal, medical, and charitable causes.

It's designed to help people generate financial support through donations for a wide variety of needs, such as medical expenses, memorials, or emergency assistance. The platform provides a simple and user-friendly interface to launch and manage fundraisers.

Pros

• It’s free to start a fundraiser
• This platform is ideal for personal and charitable causes
• Accessible worldwide, allowing you to raise funds from anywhere
• GoFundMe’s Giving Guarantee ensures donation security
• Daily transfers to your bank account, no time limit on fundraiser length.

Cons

• Success depends on personal networks
• Transaction fees are 2.9% + $0.30 per donation, which can add up.

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7. StartEngine

StartEngine is an equity crowdfunding platform that allows startups to raise capital by connecting with a network of over 1.8 million prospective investors.

Through Regulation Crowdfunding (Reg CF), companies can raise up to $5 million, which opens investment opportunities to the public. StartEngine simplifies the fundraising process by providing financial reviews and legal documentation, which saves companies on costs.

Pros

• Access to a large network of 1.8 million investors
• Dedicated team offers support with SEC filings, setup, and marketing
• Quick campaign launch in 4-6 weeks
• StartEngine handles financial review and legal paperwork.

Cons

• Commission fees are between 5% to 12%, depending on the campaign
• Strict legal and financial requirements to qualify for Reg CF.

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How to Choose The Right Crowdfunding Platform?

Here’s a short guide to help you pick the right crowdfunding platform that aligns with your goals, audience, and campaign needs.

Determine Your Fundraising Goal

Before stepping into any platform, get clear on why you’re raising funds. Are you collecting donations for a personal cause like medical bills or a community project? Or are you launching a startup and offering equity to investors?

Platforms like GoFundMe are better for personal or charitable causes, while StartEngine works amazingly at equity crowdfunding for businesses. So, don’t forget to match your goal with the platform’s primary focus to reach the right audience and have the tools you need to succeed.

User-Friendly Interface

Spend some time exploring its website before you commit to the crowdfunding platform.

The best platforms are easy to navigate, visually appealing, and make you feel excited to start your campaign. If the process of setting up your fundraiser feels overly complicated or frustrating, it might be a sign to look elsewhere.

Transparent Fee Structure

Every crowdfunding platform charges fees, but the way they’re structured can vary. Some platforms charge a flat percentage of the total funds raised, whereas others may have extra transaction fees.

Keep an eye out for platforms with hidden charges or penalties for missing your target.

Built-in Sharing Tools

Your fundraiser’s success heavily depends on how well you can spread the word. Look for platforms with built-in tools for sharing across social media platforms like Facebook, Instagram, and even email campaigns.

Reliable Customer Suppor

Good customer support can make or break your crowdfunding experience. Check if the platform offers multiple support channels, like live chat, email assistance, or a phone helpline. A reliable platform prioritizes customer satisfaction and ensures help is readily available whenever needed.

Once you know which platform to choose, have a look at some incredibly useful tips for a successful campaign.

FAQs

How To Join Crowdfunding?

First, choose a trusted site that fits your goals. Sign up, create an account, and set up your campaign by sharing your story, goals, and funding target. Add photos or videos for impact. Finally, share your campaign link with friends, family, and social networks to start receiving support.

Is Crowdfunding A Good Way To Raise Money?

Yes, crowdfunding is an effective way to raise money, especially for startups, creative projects, personal causes, or emergencies. It allows you to reach a wide audience, gather small contributions from many people, and build community support.

Is Crowdfundly Site Safe To Use?

Yes, Crowdfundly is safe to use. It offers secure payment gateways to protect transactions and ensures user data privacy. The platform follows industry-standard security measures, which gives both fundraisers and donors a good feeling.

Verdict

Now, you know the answer to this question- What are the best sites for crowdfunding?

The best crowdfunding site depends on your goals, whether for a startup, personal cause, or creative project. Platforms like Kickstarter, Crowdfundly, and GoFundMe offer unique strengths. Focus on ease of use, fees, support, and promotional tools.

Always research platform requirements and prepare a compelling campaign. Success will come from clear goals, engaging storytelling, and active promotion.