Which crowdfunding platform is the best for the community?
The modern world is rapidly changing. That means one has more and more opportunities when it comes to raising money for your cause. The phenomenon of crowdfunding continues to grow year per year, giving the opportunity to fund causes you are passionate about into everyone’s hands. It’s a great option for many communities and charities, but there are so many platforms out there. How do you know which one to choose?
Well, GoFundMe and IndieGoGo are often competing to be the best crowdfunding platforms. Both competitors are great options, but when it comes to choosing between GoFundMe and IndieGoGo for raising funding for your cause, your choice will depend on a number of factors. So, this quick comparison guide will help you to have a detailed look at two of the most popular crowdfunding platforms.
Comparing Crowdfunding Platforms
As it was mentioned before, both platforms are pretty great for crowdfunding. But you’ll need to choose one that perfectly meets your goals. Firstly, we shall have a look at both companies’ backgrounds.
GoFundMe
- Niche: GoFundMe is usually used for both nonprofit and profit crowdfunding goals. GoFundMe’s crowdfunding platform is more then welcoming to individuals and personal causes. Campaigns to fund life events like education, medical treatment, and sports teams are major on the site. The platform itself doesn’t have the independent community that some other crowdfunding sites have, but campaigns are extremely shareable, which can make up for the lack of community.
- Fees: Signing up to GoFundMe for free, GoFundMe charges a 2.9% credit card processing fee plus $0.30 per pledge. You can read more about GoFundMe fees in this article.
- Funding: You will receive all your funds, whether you have reached your project’s goal or not. That means that funding on GoFundMe is not necessarily all or nothing.
- Duration: There are no deadlines on campaigns unless you choose the All-or-Nothing option.
- Categories: GoFundMe supports topics connected to News & Events, Accidents & Emergencies, Animals & Pets, Babies, Communities, Non-Profits, Charities, etc.
IndieGoGo
- Niche: IndieGoGo also suits both for-profit and nonprofit crowdfunding. It also covers a wide variety of industries. Indiegogo is a crowdfunding platform that doesn’t specialize in any type of campaign. All kinds of projects are accepted.
- Fees: Indiegogo charges a 5% platform fee on all funds raised for your campaign. Fees are calculated from the funds you actually raised. Their payment processor also charges a processing fee that varies according to your location and currency. This information you can check on their website.
- Funding: You have the opportunity to claim your funds, whether or not your goal was fulfilled. You can also apply the All-or-Nothing option. Nevertheless, campaigns on Indiegogo have lower average funds raised, its diverse base is a great plus. Indiegogo has two plans: flexible and fixed. For example, if you go with a flexible funding plan, you can keep whatever you raise, you’ll be paying fees regardless of whether you reach your goal or not.
- Duration: Projects can last up to 40 days.
- Categories: IndieGoGo caters to project categories like Animals, Art, Comic, Communities, and many more.
GoFundMe vs IndieGoGo: Choose the Best!
Probably, your project type will be the most important factor to choose between GoFundMe vs IndieGogo.
GoFundMe is great for personal causes and life events. Nevertheless, because there’s no existing community on the site, it’s likely that donors will only be your friends, family, and personal network. Depending on how much money you’re looking to fundraise, and how confident you are in your campaign marketing, GoFundMe can become a perfect option for fundraising your campaign.
Indiegogo is a good option if your project doesn’t fall into the specific categories that other crowdfunding platforms require. If you do not have high traffic and great brand recognition, you’re likely to raise less money on Indiegogo. So if your funding goals are relatively low, it may be for you. The site is also can be a good option or nonprofits because of the flexibility with tax-deductible campaigns.
