Editors’ note: This article, first published in print during July/Aug 2018, has been republished for Nonprofit Quarterly with minor updates.
If you’re a nonprofit considering a crowdfunding campaign to attract more online donations there are many options available and many factors to consider before you make your decision.
*There’s a range of fee structures, depending on the platform and type of fundraising you’re conducting. Many platforms reduce rates for certified nonprofit causes, for example, Facebook offers 0% platform fees for nonprofits, but not for individuals/personal causes, and Facebook does not share donor data.
Prioritize your goal: is it to raise money rapidly? Reach an entirely new donor segment? Raise 2-3x more money? Once you clarify this—and know what you’re signing for—your options will narrow.
*Even when platform fees are waived, the fundraiser or donors may still be asked to cover payment-processing fees. Platforms’ conditions change regularly, so read the fine print!