GoFundMe vs. Crowdfunder: A Platform Comparison
Crowdfunding gives ordinary people the power to make an extraordinary difference. When you’re raising money for a cause that’s close to your heart, it’s important to know that every donation will be going to the person or community it is intended to help.
Online fundraising can be a lifesaver, which is why it’s so important to choose the right platform. GoFundMe and Crowdfunder are both crowdfunding platforms, but what they offer donors and organisers differs. Let’s take a quick look at how GoFundMe vs. Crowdfunder compare, so you can relax in the knowledge that you have chosen the platform that best suits your needs.
GoFundMe is the safest crowdfunding platform thanks to the GoFundMe Guarantee—the first and only donation protection guarantee in the crowdfunding industry.
GoFundMe believes generous givers deserve donor protection—it’s only fair! That’s why a third of our staff is dedicated to keeping customers financially safe. GoFundMe uses advanced payment encryption technology, with donations stored securely until you request a withdrawal via electronic bank transfer directly into your bank account.
Security specialists monitor the site around the clock to make sure that funds go to the intended recipients. On the rare occasion that misuse occurs, GoFundMe swiftly refunds donations to donors. Likewise, if a beneficiary fails to receive the promised funds from a fundraiser, GoFundMe donates the difference. With GoFundMe, nobody loses out.
Crowdfunder does not offer a fraud protection guarantee. In its terms and conditions, the platform states that it “cannot give any guarantee that any of the community members are who they say they are or that the information they provide is accurate, complete or true.” The site does not assume liability for transactions between community members and also doesn’t hold itself responsible for ensuring community members follow through on their promises.
However, Crowdfunder will review any projects that donors flag as fraudulent. It will cancel any pledges that are found to be fraudulent but will not be liable for any losses suffered.
GoFundMe’s hardworking team of Customer Happiness agents are on hand to offer support and advice around the clock, seven days a week. You’ll never be left floundering.
No matter what you’re crowdfunding for, you’re sure to find inspiration and motivation in the many heartwarming success stories that GoFundMe highlights online.
Crowdfunder also has a team of experts available to help organisers, but their office is only staffed on weekdays from 9 a.m. to 5 p.m., with nobody available outside of normal working hours.
The site’s help centre aims to answer all the most frequently asked questions and its workshop hosts deliver crowdfunding workshops around the UK and hosts interactive online sessions.
Crowdfunder does not have a mobile app.
GoFundMe’s key fundraising features
The largest giving community
GoFundMe boasts a huge giving community of more than 120 million donors worldwide, making it the world’s largest social fundraising platform. Together, GoFundMe’s donors have raised over £8 billion for important causes—and counting—partly thanks to so many people recognising and trusting the site.
No platform fee
Most crowdfunding sites charge a platform fee, meaning they take a percentage of all the money you have raised through your fundraising page. These fees typically range from 5% to 12%.
Some sites hike up their platform fee if you fail to meet your target and others only release funds after you meet or exceed your goal. GoFundMe does not charge a platform fee. We are funded by voluntary tips during the donation process, meaning you get to keep more of the funds you raise.
Organisers who start personal fundraisers are charged a small standard payment transaction fee of 2.9% for credit card processing and the secure transfer of funds, plus 25p per donation.
For charity fundraisers, crowdfunding fees drop down to 1.9% plus 20p per donation. These crowdfunding fees are deducted from the donation total, so the organiser doesn’t have to do a thing. Every penny of Gift Aid goes directly to charity.
Designed for busy people
GoFundMe understands that people are busy, which is why its fundraisers have been specially designed to be mobile-friendly for quick and easy donating on the go.
Organisers can set up their fundraiser, update it, and check in on their fundraising progress all through the GoFundMe app. It really couldn’t be simpler.
GoFundMe organisers do not have to worry about falling short of their target because, unlike many similar platforms, there are no deadlines, limits, or penalties for fundraisers staying live. Fundraisers remain online until you turn off donations or remove them. If you choose to, you can leave your fundraiser active indefinitely and continue accepting donations even after reaching your goal.
Optimised for social sharing
GoFundMe knows how important it is to spread word of your crowdfunding project far and wide. To help, you’ll find integrated links to your Facebook, Twitter, and email accounts so that you can share your fundraiser across your social networks with one click of a button.
Every time you share your GoFundMe online, you bring in an average of up to £43. So post yours proudly and often.
Receive your money quickly
With GoFundMe, there is no long wait to receive your funds after withdrawing them. You can withdraw money right away, with funds usually appearing in your bank account within as little as two to five working days.
Many other platforms place a seven to 30-day hold on funds, but GoFundMe’s speedy process means that financial aid can be delivered urgently. In 2017, GoFundMe delivered over $27 million to the people affected by Hurricane Harvey in the first 30 days after the storm.
GoFundMe organisers can also invite someone else to withdraw the funds as the beneficiary so that they can directly access the donations.
Crowdfunder’s key fundraising features
Smaller user base
To date, Crowdfunder has helped over 175,000 individuals, charities. Businesses, and community projects have raised over £70 million.
Free platform for some fundraisers
When talking about Crowdfunder fees, the site has no platform fee if you are fundraising for a charity or a personal cause such as medical or funeral bills. However, projects run by individuals or organisations have pay fees of 3.6% of the total donations. Organisers wishing to make use of the advanced platform must pay a 3% platform fee, too. Crowdfunder also charges a transaction fee of 2% plus 30p per pledge on EU cards or 3.9% plus 30p on non-EU cards.
Crowdfunder lets organisers offer unique items, services, or experiences as “rewards” to incentivise donations and say thank you to donors.
Choice of payment options
Crowdfunder offers both “all or nothing” and “keep what you raise” payment options. With the former, you only receive the funds raised if you hit your target by a specified date. If you don’t hit your target, all funds are returned to donors. This is best suited to projects that can only take place after raising a set figure, as average donations tend to be higher at £50 a pop.
With the latter flexible funding model, you keep all the funds raised on your project, making it better suited for charitable crowdfunding. Donations are lower on average, at £11.
Crowdfunder transfers the raised funds within approximately seven working days but states that “there may be a delay between the end of the fundraising period and your access to any funds.”
Fixed fundraising targets and periods
Crowdfunder projects may take up to three working days to go live. Once submitted, you cannot change your fundraising target or the fundraising period. You can only change the rewards offered if you haven’t received any pledges.
Crowdfunder sets a minimum fundraising period of two weeks and a maximum of eight weeks, unless specifically agreed with the platform in writing.
Extra pledges from partners
Crowdfunder has a pot of more than £5 million of extra funding, collected from 70 partners in the public and private sector, to donate to community-based or social enterprise projects.
Organisers apply for funding, then their project gets shown to a panel of financial backers and some are chosen to receive extra financial support of up to £20,000.
Start your GoFundMe today
For a free platform, low transaction fees, a mobile app, 24/7 support and, most importantly, the GoFundMe Guarantee, consider crowdfunding on GoFundMe.