Types of crowdfunding
When looking at crowdfunding, there are a variety of different structures that fall under that umbrella. From donation based, where you aren’t expecting any kind of reward in return for your contribution, to rewards based or equity based crowdfunding.
Donation-based crowdfunding
In donation-based crowdfunding, people search for and support a cause by donating to it without receiving anything in return. The person running the fundraiser isn’t obligated to pay back donors or give them anything else in return for their contributions. GoFundMe is one of the major crowdfunding sites that uses donation-based crowdfunding.
Note: GoFundMe only allows donation-based crowdfunding.
Equity-based crowdfunding
In equity-based crowdfunding, the fundraiser organiser accepts money from people looking to invest, typically to help launch a business. In return, investors will receive a small piece of equity in the business or company. You can read more about this type of crowdfunding here.
Rewards-based crowdfunding
Through rewards-based crowdfunding, the organiser of the fundraiser provides a reward or products to donors, usually a service or physical item, in exchange for a contribution.
Crowdfunding on GoFundMe
Crowdfunding can work for anybody, and there is no cause too big or small – the beauty of crowdfunding is that it exists to help an array of people and needs. At GoFundMe, we empower people to rally support for personal and charitable causes. Crowdfunding is made easy and risk-free, with a clear interface, quick withdrawals and a 0% platform fee. See how GoFundMe compares to other crowdfunding platforms.
In 2023, 39M+ donations were made on GoFundMe to help others. Every year we see millions of people all over the world use crowdfunding to help each other and securely get funds to those who need it.
Examples of what you can crowdfund for
The possibilities of crowdfunding are essentially endless – as long as they don’t breach GoFundMe’s terms of service, of course. There are a variety of different things that you can crowdfund for – from kit for your sports team to medical expenses.
- Medical: Crowdfunding can pay for medical expenses that are not covered by the NHS
- Memorial: Crowdfund to honour the memory of someone who has passed away or to support those dealing with bereavement
- Emergency: Sometimes emergencies hit and you need that extra financial boost. You can turn to crowdfunding to help with that
- Charity: You can easily crowdfund for charities on GoFundMe – and funds go directly to them
- Education: You can raise money for educational causes on GoFundMe – from school supplies to uniform
- Animal: This might be medical treatment, vet’s bills or raising money for animal shelters
- Business: You can crowdfund to support yours or someone you care about’s business on GoFundMe
- Community: Crowdfund for causes close to your community
- Competition: Crowdfund to get to that competition
- Creative: Fundraise for creative projects and causes on GoFundMe
- Events: If you have an event that needs funding, why not explore crowdfunding?
- Faith: Crowdfund for faith causes
- Family: Crowdfund for those you love and care about
- Sports: Whether it’s Olympic level or grassroots football, you can crowdfund for a sporting cause on GoFundMe
- Travel: Gap year, holiday, honeymoon… fundraise for travel
- Wishes: Fundraise for wishes on GoFundMe
Crowdfunding best practices
When you start crowdfunding, there’s a few different (and very simple) things you can do to really maximise your chances of getting donations. Here we take a look at how you can do them.
Tell a compelling story
From your title to your story and photos, your fundraiser story should be based on your needs and it should inspire people to donate. Before getting started, learn how to make your fundraiser successful with our fundraiser story tips. And don’t forget to upload several high-quality photos or a video to help increase donations to your fundraiser. For more tips, see these helpful blog posts:
- Great Ideas for Naming Your Online Fundraiser
- How Images Can Lead to Fundraising Success
- Videos Are Powerful Fundraiser Tools
Every time you share your fundraiser, you’ll bring in an average of $43 in donations—so share your fundraiser often on Twitter, Facebook, and other social platforms to encourage others to do the same. If you get enough momentum going, your fundraiser could go viral. Well-written updates with any news you can share will also keep supporters and potential donors engaged and in the loop. For more tips, see these blog posts:
- How to Write a Fundraising Update
- Viral Fundraising: Make the Most of Your Fundraiser’s Potential
Thank your donors
Everyone loves being thanked after doing a good deed, and it’s no different with your donors. In lieu of gifts or rewards, sending thank-you messages is a way to make each donor feel appreciated. And as an added bonus, expressing gratitude can encourage additional donations and increase donor retention.
Our blog post How to Write a Donation Thank-You Letter That Gets You to Your Goal will walk you through the process of crafting the best thank-you possible. Be sure to also check out our list of 20 Affordable Ways to Say Thank You to Donors if you’d like to show your thanks beyond an email.
View more tips
Find out more about crowdfunding
Crowdfunding can be very simple, but it’s often hard to know where to start.
From wondering how exactly you enter your details, to consider what detail to even enter – there can be a lot to consider.
The best starting point is to look at our guidelines to help you out. This can help to maximise your fundraiser’s potential and get the most out of your fundraising journey.
Take a look at our crowdfunding sharing tips here.
Crowdfunding sharing tips
Here’s our quick and easy tips on how to create a crowdfunding campaign.
How to create a crowdfunding campaign
Take a look at some crowdfunding success stories here.
Success stories
Start crowdfunding in just a few simple steps
Starting your crowdfunding journey could not be easier than on GoFundMe. Our purpose built platform means that it’s fast and safe to start a fundraiser – and it’s also free. To get started all you need is an email address, a goal in mind (how much you’d like to raise for your chosen cause), a title and a fundraising story. You can really make a difference today. Start a GoFundMe and get going on your crowdfunding journey – and good luck!
