GoFundMe is one of the most popular online fundraising platforms, allowing people to raise money for personal causes or needs. With its ease of use, social reach, and minimal fees, GoFundMe makes fundraising accessible for many. However, it’s not necessarily the best or only option for everyone. When considering doing an online fundraiser, you have several platforms and factors to weigh to decide what will work best.
What is GoFundMe and how does it work?
GoFundMe is a crowdfunding website where users can set up campaigns to raise money for any cause or need. Here’s a quick overview of how it works:
- Users sign up for a free account and create a campaign page with details about their fundraiser.
- They share the campaign link with their network via email, social media, etc. to get donations.
- Donors can give money via credit card or debit card through the secure GoFundMe platform.
- GoFundMe deducts a 2.9% + $0.30 fee from each donation.
- Campaign organizers withdraw money regularly to their bank account as it comes in.
- GoFundMe has social features like donator comments and campaign updates to build community.
Pros of GoFundMe include its massive reach, easy setup, and campaigns being shareable via social media. The platform handles payment processing and transfers, making fundraising accessible for personal causes. Significant cons are the fees taken and lack of guidance or guarantees a campaign will meet its goal.
GoFundMe by the Numbers
Some key stats about GoFundMe:
- Over $15 billion raised from over 200 million donations since 2010
- Top 5 campaign categories are medical, memorial, emergency, pets, education
- Around 120,000 active monthly campaigns in 40 countries
- Estimates of $1,000 raised on average per campaign
GoFundMe has tapped into a clear demand for personal cause fundraising. Its platform empowers ordinary people to quickly set up a campaign and leverage their social network. While professional organizations and charities have other well-established options like galas and mail appeals, individuals often find GoFundMe the easiest way to get donations from their community.
Comparing GoFundMe to Other Fundraising Platforms
While GoFundMe may be the most popular, it’s not the only crowdfunding site out there. Here’s how GoFundMe stacks up against some alternatives:
| Platform | Fees | Features | Best For |
|---|---|---|---|
| GoFundMe | 2.9% + $0.30 per donation | Social sharing, campaign updates, donor comments, withdrawal to bank account | Personal causes, medical bills, emergencies, memorials |
| Kickstarter | 5% if campaign meets goal, 3-5% payment processing | Creative works like films, albums, games, product designs | Creative projects, new product launches |
| Indiegogo | 5% if campaign meets goal, 3-5% payment processing | Flexible funding, perks-based campaigns | Creative works, entrepreneurial ideas |
| CrowdRise | 5% platform fee, 3% payment processing | Peer-to-peer fundraising, charity events | Nonprofit fundraisers, marathons, charity events |
| Fundly | 4.9% + $0.30 per donation | Nonprofit campaigns, donor management | Nonprofit organizations, schools, churches |
| Razoo | 4.9% + $0.30 per donation | Nonprofit campaigns, donor management | Nonprofit organizations, schools, churches |
Some key differences emerge:
- GoFundMe is best suited for personal causes and needs.
- Sites like Kickstarter and Indiegogo focus on creative projects and product launches.
- CrowdRise, Fundly, and Razoo have tools optimized for nonprofits and charities.
- GoFundMe has the highest general fees at nearly 3% per donation.
The platform that works best depends on the type of campaign and audience. For individual medical bills or emergencies, GoFundMe’s personal fundraising focus often makes it the ideal choice. For a new tech product or creative idea, Kickstarter’s project launch tools lend better support. Nonprofits are likely better served on a site with donor management tools and lower fees.
Factors to Consider in Choosing a Fundraising Platform
Here are some key factors to consider when deciding whether GoFundMe or an alternative platform is best for your campaign:
Audience
Who do you need to reach to make your campaign successful? If it’s mainly family, friends, and community connections, GoFundMe’s social sharing is likely a good fit. For projects and causes drawing donors outside your immediate circle, other platforms may have better discovery and reach.
Fees
GoFundMe’s near 3% fee per donation adds up. For large fundraising goals or campaigns with many small donations, a site like CrowdRise or Razoo with lower fees may save you significant money. Of course, the platform has to enable you to reach enough donors to make the lower fees worth it.
Fundraising Type
Medical campaigns for individuals do extremely well on GoFundMe but often aren’t permitted on some other platforms. Nonprofits can use GoFundMe but generally have access to more fundraising tools optimized for them elsewhere. If personal crowdfunding is your goal, sticking with GoFundMe is likely the best bet.
Features
Consider what campaign features would help make it successful. GoFundMe offers great social sharing and community tools. Kickstarter and Indiegogo provide project launch frameworks and perks for different donor levels. Nonprofit sites include donor management, volunteering, and charity tracking. Select the platform offering the capabilities that best match your campaign needs.
Branding
GoFundMe pages have a very standardized format and design. This makes it easy for anyone to quickly launch a campaign but offers little customization or branding options. Other platforms allow greater flexibility on branding campaigns with your visuals, messaging, and storytelling. For professional organizations or causes needing a polished look, GoFundMe may not be the right fit.
Top Alternatives to GoFundMe
Based on the criteria above, here are some top alternative platforms to consider beyond GoFundMe:
Kickstarter
Kickstarter is the leader for crowdfunding creative, artistic, and entrepreneurial projects. Campaigns follow a defined project framework with fundraising goals, descriptions, visuals, videos, donor perks, and updates. The all-or-nothing model (only get money if reach goal) creates urgency. Kickstarter takes 5% fee if campaign is successful.
Indiegogo
Indiegogo offers a similar project crowdfunding framework to Kickstarter but with flexible funding allowing campaigns to get money raised even if the goal isn’t met. There’s also an option for nonprofits to create campaigns with 0% platform fees. Indiegogo caters well to early-stage startups launching new products.
Fundly
Fundly provides an excellent GoFundMe alternative for nonprofit fundraising given its 4.9% fee and toolkit of donor management, volunteer coordination, and campaign sharing features. Churches, schools, charity organizations can customize branding and set up recurring giving options.
CrowdRise
CrowdRise specializes in charitable and cause-related fundraising with peer-to-peer campaigns and fundraising event capabilities. It provides individual and team fundraising pages tailored for charity races, walkathons, galas, and more. CrowdRise also facilitates corporate matching and promotes gamification and leaderboards.
Bonfire
Bonfire offers crowdfunding tailored specifically towards creating and selling custom apparel, accessories, home goods, and other merch. Campaigns feature art and products you design that people can pre-order or purchase to support your cause or project. Bonfire handles production and shipping.
Should You Still Use GoFundMe?
Despite having alternatives, GoFundMe is still likely the best solution for many personal cause fundraisers given its brand recognition and campaign sharing capabilities. However, as platforms like Facebook Fundraisers gain ground for social sharing of nonprofit causes, GoFundMe may face increasing competition. For medical bills, emergencies, or memorials, GoFundMe remains the dominant choice to tap your existing community. But for creative projects or charity campaigns drawing new donors, assessing other specialized platforms can pay off.
The best approach is to consider GoFundMe but also explore if alternatives may better serve your fundraising needs and offer lower fees. Evaluate your campaign type, target audience, required features, and branding flexibility. While GoFundMe has been the runaway leader, taking time to understand your options ensures you choose the platform with the best fit and highest likelihood of fundraising success. The more your campaign resonates with your audience and provides value, the better it will perform across any platform.
Conclusion
GoFundMe popularized personal cause crowdfunding and still leads the category for individual medical, emergency, and memorial campaigns. However, for creative projects, nonprofit fundraising, or launching new products, alternatives like Kickstarter, Indiegogo, Fundly, and CrowdRise are worth exploring.
The ideal platform depends on your campaign type, target donors, needed features, and branding flexibility. While GoFundMe is the default choice, assessing other options can lead to picking a site better optimized for your campaign at potentially lower cost. Remember to focus on shaping a compelling story and value proposition for your audience first and foremost.
Key Takeaways
- GoFundMe pioneered personal cause fundraising with an easy-to-use platform but alternatives exist for different needs.
- Kickstarter and Indiegogo specialize in creative projects; nonprofit sites like Fundly and CrowdRise offer charity tools.
- Consider your campaign type, audience, features, branding needs, and fees in selecting platform.
- GoFundMe remains the best for medical, emergency and memorial campaigns engaging your existing community.
- For new audiences and project types, assess if alternatives like Kickstarter or CrowdRise may add value.
The platform is just the tool. Focus first on crafting a compelling fundraising campaign and value proposition optimized for your goals. Then choose the online fundraising tool that best supports bringing your campaign to the right audience. With smart planning and promotion, your fundraising can succeed on GoFundMe or the many alternatives out there.