Crowdfunding is a popular method for entrepreneurs, nonprofits, artists, and individuals to raise money and support for their projects. It can help a startup get off the ground, provide small business owners with enough funding to open their doors, or support nonprofit disaster relief efforts.
While crowdfunding offers an excellent opportunity for funding and community engagement, it also demands careful planning, strategic marketing efforts, and intentional delivery on promises to maintain trust and credibility.
Below, we’ll cover how crowdfunding works and what the best crowdfunding websites for running your next campaign are.
What is crowdfunding?
Crowdfunding is the practice of raising small amounts of money from a large number of people. The total raised typically funds a specific project, goes toward general donations for a worthy cause, or drives support for a time-based initiative. Depending on the campaign’s organizer, it may also support a new business venture, philanthropic cause, or product launch.
Here are some key characteristics of crowdfunding:
- Scale and context: Crowdfunding has enabled billions of dollars in funding globally, with millions of individual projects launched across health, education, disaster relief, and the arts. This is evidence that the model works across virtually every cause type.
- Human connections: Crowdfunding succeeds because it combines a low barrier to give with the power of personal networks and authentic storytelling.
- Nonprofit differentiation: Crowdfunding is distinct from year-round nonprofit fundraising because it focuses on raising funds for specific, tangible, and time-bound projects or urgent appeals.
How does crowdfunding work?
A crowdfunding campaign is usually conducted online through a fundraising site to garner support for a set goal.
Regardless of your goal, the key to crowdfunding success is engaging the right people in meaningful ways. Before you begin, identify your target audience: What are your supporters’ preferences, tendencies, and behaviors?
Keep these in mind throughout your campaign and as you follow these five steps.
1. Select a crowdfunding platform
Need a crowdfunding platform to use? Here are three considerations:
Evaluate the fundraising platform’s pricing and fee structure
- Credit processing fees: A small percentage of each monetary gift to a crowdfunding campaign goes to the processing service of the online platform hosting the campaign. The fee covers data transmissions, transaction authorizations, and funding deposits. We recommend looking for a crowdfunding site that offers donors the choice to cover processing fees.
- Percentage platform fees: While the percentage can vary from platform to platform, most services earn their revenue by deducting a fee from the total amount raised. Consider how these fees could impact your fundraising goal.
Investigate ease-of-use and customization options
- Ease of use: A fundraising platform should keep things simple. The less time you spend building, updating, and optimizing your crowdfunding campaign page, the more time you have to raise money.
- Customization options: Consistent branding on your crowdfunding campaign helps create an identity for your organization. Advanced customization options allow you to easily communicate your values, clarify your call to action (CTA), and tell your nonprofit brand story to anyone who visits your donation website.
Identify available resources and customer service offerings
- Accessible resources: Potential fundraising platforms should offer online tutorials, resource guides, or FAQs. Easy-to-access tools can save you time throughout your crowdfunding campaign.
- Attentive customer service: If you have a problem during your crowdfunding campaign, you’ll want to know someone is there to help. Contact customer support before selecting a fundraising platform to ensure its team is helpful and responsive.
2. Get accepted by a fundraising platform
Some platforms may require you to complete online forms and provide documentation before you’re accepted to host your crowdfunding campaign on their site. This process ensures you’ve met the platform’s requirements and will use it as intended.
Requirements vary from platform to platform, but here are a few examples:
- Must be 18 years of age or older
- Must be a permanent resident of one of the eligible countries
- Must have an address, a bank account, and a government-issued ID based in the country where you create the project
- Must have a linked bank account that belongs to the person who verified their identity for your project
- Must have a major credit or debit card
3. Pitch your crowdfunding project
Once a fundraising platform accepts you, you may have to pitch your project to their team to ensure it’s a good fit. Be prepared to answer questions, such as:
- What are you trying to accomplish?
- How much are you hoping to raise?
- How do you plan to solicit support?
- Why is this initiative so important?
Prepare for this pitch by identifying your campaign narrative and laying out your marketing plan, similar to how you would promote your organization through word of mouth, social media, and paid ads.
You’ll use this same information to drive donations to your campaign. Think of this pitch as an opportunity to sell your story and gain support from donors, accredited investors, family members, or others who feel passionate about your initiative.
4. Conduct your campaign
Once you’re approved and ready to go, it’s time to run your campaign. Start by building an optimized campaign page. Use compelling imagery, engaging video snippets, and a detailed narrative to tell your story and build your case for donors. When people land on your page, you want to quickly draw them into your cause and streamline the giving process.
After you’ve built your site, pair its launch with effective marketing strategies to get as many eyes on your page as possible. Share the crowdfunding project on social media, run an email campaign, and collaborate with any partners who can help spread the word further.
Pro tip: If you’re a nonprofit on GoFundMe Pro, you can use our nonprofit social sharing integration with Meta to make it easier for donors to find, share, and support your cause on their preferred channels.
Throughout the campaign, track your progress and share updates with your audience.
5. Receive payout from your crowdfunding campaign
While some platforms will pay out all the money you raised, regardless of the final total, others may only offer a payout if you reach your fundraising goal.
The pricing and fee structure will also affect the percentage of funds that land in your organization’s bank account. To raise as much money as possible, ensure the platform you select doesn’t have fine print that could interfere with your success.
What are the different types of crowdfunding?
While all crowdfunding efforts aim to collect donations toward a set goal, there are some key distinctions within the crowdfunding definition.
Rewards-based and equity-based crowdfunding
When someone contributes funds in exchange for something, it falls into the rewards-based crowdfunding bucket. This is typical for startups that might offer free swag or a discounted service.
Similarly, equity-based crowdfunding, or equity crowdfunding, allows small businesses and startups to give away a portion of their business in exchange for funding.
Donation-based crowdfunding
The simplest type of crowdfunding is donation-based crowdfunding, which means someone gives money for nothing in return. However, this type of crowdfunding can be extremely rewarding. It attracts loyal supporters who are passionate about your work and may choose to give again.
3 common use cases for crowdfunding?
Small businesses, research institutes, nonprofits, and individuals are just some of the groups that may choose to run a crowdfunding campaign. Below, we look at the most common applications of crowdfunding and how to successfully bring each strategy to your organization.
Funding for philanthropic causes
Demonstrated by global giving initiatives like Giving Tuesday, crowdfunding has proven its impact on the long-term health and sustainability of nonprofits worldwide.
A nonprofit crowdfunding campaign inspires support for your cause with a compelling narrative to drive people to make a gift. It consists of a campaign landing page that highlights your impact and draws people in, as well as a donation form to facilitate the transaction process.
Crowdfunding campaigns create a sense of urgency with your target audience and motivate immediate action. Common nonprofit crowdfunding applications include:
- General donation fund
- Time-bound project
- Disaster relief
See how nonprofits use Campaign Studio to fundraise anywhere, for any occasion, with branded crowdfunding pages that drive more donations.
Funding for scientific research
Early-stage scientific research can be challenging to fund, as many foundations or government agencies want to see proof of concept before awarding a grant. Crowdfunding can fill this gap, supporting impactful experiments that may otherwise be impossible.
To do so, researchers or other interested parties pitch a proposal to gather support through a crowdfunding page. Patients, medical professionals, and individuals with a strong belief in the topic can then donate online to the project. This broad support allows scientists greater intellectual freedom and independence and provides them with an opportunity to build credibility.
Experiment is a crowdfunding platform that specifically focuses on fundraising for scientific causes. In one instance, the site helped researchers raise 121% of a $5,000 goal to support an effort to study how plastic-metabolizing bacteria could create the next generation of probiotics and therapies to combat microplastics in the human bloodstream.
Startup funding
Rather than depending on traditional funding sources, startups can get their businesses off the ground by using crowdfunding investments from friends, family members, entrepreneurs, and venture capitalists.
Crowdfunding makes it easier for startups to amass capital and market their new business to larger audiences. Since investors want to see a company do well, this makes them eager to spread the word about your new products and initiatives.
Startups typically offer investors something in return, most commonly through rewards-based or equity-based crowdfunding. They use social media and crowdfunding websites to educate primary and extended networks about the opportunity to fund the emerging business
Top crowdfunding sites
When looking for people to help fund a new project or business venture, it’s essential that the transaction process is as seamless as possible. Below, we summarize four of the best crowdfunding sites to help you understand what makes each unique.
Indiegogo
Best for: Entrepreneurs
Indiegogo offers the tools to set up a 60-day campaign to help raise funds and garner support from potential investors. By giving entrepreneurs a platform to introduce clever or unconventional products to the world, Indiegogo fuels innovation.
Indiegogo’s crowdfunding campaigns allow entrepreneurs to get curious and creative while providing early backers and angel investors a place to discover groundbreaking products before mainstream availability.
Kickstarter
Best for: Creatives
Kickstarter is a place for creatives to share their business plans with communities that will support them. No matter how big or small, Kickstarter wants to help creators of all kinds, including filmmakers, artists, musicians, designers, and more. Crowdfunders can easily spread the word about their new projects and welcome individual investors to join.
GoFundMe
Best for: Individuals and nonprofit organizations
GoFundMe is the trusted leader in online fundraising, with a community of more than 200 million helping one another. Since 2010, GoFundMe and its technology have enabled more than $40 billion in generosity for individuals and nonprofits.
With no platform fee for organizers, GoFundMe makes it easy for anyone to raise money for the people and causes most important to them. In 2025, the GoFundMe community made 79 million donations and shared fundraisers 72 million times, helping spread generosity around the world. More than 155,000 people started fundraisers for nonprofits, and 975,000 donors who first gave to a crisis fundraiser went on to support other causes.
GoFundMe Pro
Best for: Nonprofit organizations
GoFundMe Pro, a platform built exclusively for nonprofits, provides fundraising solutions that make giving easier, strengthen supporter relationships, and help organizations focus on advancing their mission.
Powered by Campaign Studio, GoFundMe Pro crowdfunding pages help nonprofits:
- Inspire more supporters to donate with impact-centered storytelling and fast-loading pages.
- Increase conversions through a seamless, fully branded donation experience.
- Simplify giving with research-backed donation forms optimized at every step.
- Launch faster with proven fundraising templates featuring prebuilt layouts, messaging, and page elements.
- Increase revenue by offering donors their preferred payment methods, including digital wallets.
- Personalize donation asks with Intelligent Ask Amounts, tailored to each donor and your campaign goals.
- Improve performance continuously through platform-wide A/B testing and optimization.
- Build momentum with a live feed of donations, comments, and supporter activity that encourages participation and social proof.
Crowdfunding success stories on GoFundMe Pro
Nonprofits use GoFundMe Pro to launch crowdfunding campaigns quickly and maximize their impact immensely. Here are two examples:
SBP
When Hurricanes Helene and Milton made landfall, SBP rapidly launched emergency fundraising efforts on GoFundMe Pro. Using Intelligent Ask Amounts, the organization increased the average one-time gift size by 66%, the average recurring gift size by 17%, and the conversion rate by 59%.
Grand Canyon Conservancy
After the Dragon Bravo Fire impacted the North Rim of Grand Canyon National Park, Grand Canyon Conservancy used Campaign Studio to launch a disaster recovery campaign in record time, raising more than $300,000 in its first month.
Start crowdfunding today to rally support around a good cause
Crowdfunding is a central fundraising model worldwide. These campaigns serve as a tool to bring personal projects to life and a powerful way for impactful organizations, creators, and businesses to share their stories. It can help fund programmatic and operational initiatives alike with the support of an extended network.
Start crowdfunding for your nonprofit with GoFundMe Pro.
Crowdfunding FAQs
What are the main types of crowdfunding?
The three main types are donation-based crowdfunding (donors give without receiving anything in return; common for nonprofits), rewards-based crowdfunding (donors receive a product or perk in exchange; common for startups), and equity-based crowdfunding (investors receive a stake in a business; common for small businesses).
What’s the difference between fundraising, peer-to-peer fundraising, and crowdfunding?
Fundraising is the broadest term for raising money to support a cause or organization. It includes everything from events and major gifts to grants, online giving, and more.
Crowdfunding is a type of online fundraising that encourages a large number of people to make individual donations toward a specific campaign or goal.
Peer-to-peer fundraising also takes place online, but instead of simply asking people to donate, it asks supporters to create and share their own fundraising pages with friends, family, and colleagues. In other words, the primary CTA in crowdfunding is to donate, whereas the primary CTA in peer-to-peer fundraising is to fundraise on behalf of your organization.
What is the difference between crowdfunding and a loan?
Private companies may take out a business loan to cover various expenses when getting started or needing an influx of cash for expansions. Businesses typically secure a loan through a bank after completing an application process to assess the company’s creditworthiness. The business must repay the loans over a set period, including interest on the borrowed amount of money.
Crowdfunding is another way businesses can secure startup money or otherwise fund new initiatives. Individuals interested in investment opportunities provide venture capital to the company through a crowdfunding site. In return, they often receive incentives like the company’s new product or an equity share.
Crowdfunding can also support peer-to-peer lending, where investors eventually get paid back, similar to a loan. The U.S. Securities and Exchange Commission regulates crowdfunding investments.
How much money can you make through crowdfunding?
Crowdfunding campaign revenue varies from hundreds to millions of dollars, depending on multiple factors, such as goals, causes, and platforms.
One source found that the average amount raised for a successful crowdfunding campaign was $8,150, with donation-based crowdfunding holding 28% of the market share.
As the popularity of crowdfunding campaigns continues to expand, these averages are likely to fluctuate.
How do I tell a good story for a crowdfunding campaign?
Nonprofit storytelling is a huge part of creating meaningful connections with supporters. Rather than simply informing people about why your campaign is critical, use sensory, descriptive language to create a felt experience.
Keep your text short and include compelling imagery, like photos or videos. Clarify the tangible impact of each contribution and focus on one clear CTA that will drive conversions.
Is crowdfunding right for nonprofits?
Donation-based crowdfunding is one of the most effective tools available to nonprofits for raising money online, reaching new donors, and building community around a specific goal. Platforms like GoFundMe Pro help nonprofits create compelling donation pages, track results, and convert one-time donors into recurring supporters.
Copy editor: Ayanna Julien


















