Crowdfunding Platforms: Kickstarter vs. GoFundMe
Kickstarter and GoFundMe are popular crowdfunding websites where people contribute money to fund projects or causes. They both help individuals, businesses, and nonprofits to raise funds online, offering different features and fee structures that suit various types of campaigns.
Key Differences
A key difference is their all-or-nothing system. Kickstarter campaigns receive no funds unless they reach their goal, while GoFundMe allows you to keep the funds raised even if you don’t reach your goal.
Kickstarter is typically used for creative projects or startups, requiring a set goal to be reached by a certain deadline. If the project does not reach its goal, creators will not keep any of the funds. Kickstarter projects can also aim for any amount without a maximum limit, influenced by factors like credit score and income. In contrast, GoFundMe is commonly chosen for medical expenses, personal emergencies, memorial funds, or trips, without a fixed deadline or all-or-nothing requirement.
When it comes to fees, Kickstarter has no fees if you fail to reach your fundraising goal, whereas GoFundMe charges fees regardless of whether your fundraiser is fully or partially funded.
Choosing the Right Platform
Both GoFundMe and Kickstarter offer their own advantages, depending on the type of campaign one is looking to run:
- GoFundMe suits personal campaigns and charges higher fees but allows you to keep partial funds.
- Kickstarter is more suitable for creative projects, with no fees charged if the fundraising goal is not met.
It is important to note that GoFundMe collects a processing fee of 2.9% plus $0.30 on each donation, which is beneficial for those seeking general financial support without strict time limits. Additionally, companies like Kickstarter and GoFundMe offer opportunities outside traditional banking, allowing direct engagement with investors.
For those interested, it’s possible to use both GoFundMe and Kickstarter simultaneously. However, before launching on both platforms, consider the different audiences each platform attracts. Kickstarter tends to draw backers interested in creative domains like art, music, film, etc., while GoFundMe is designed for personal causes. Indiegogo is another platform offering flexibility for a variety of campaigns, with consistent fees whether you are fully or partially funded.
Considerations for Nonprofits and Creative Projects
Nonprofits can use both GoFundMe and Kickstarter for crowdfunding, benefiting from the ability to gain donations directly without extensive time and resources often required for traditional fundraising methods. For creative entrepreneurs, ongoing support might be better found on Patreon, while one-time project funding is available through Kickstarter and Indiegogo.
Fees Comparison
When comparing GoFundMe vs Kickstarter in terms of fees:
- GoFundMe charges a fee of 2.9% plus $0.30 for payment processing.
- Kickstarter charges a 5% fee of the total funds raised, plus a 3-5% payment processing fee from each pledge, but no fee if the campaign is unsuccessful.
Thus, understanding the differences between these platforms is crucial for making an informed decision for your specific project goals.