GoFundMe vs. Kickstarter - Which Crowdfunding Site is Better
So, you have a brilliant idea and need funding to make it happen, but don't know where to turn? Crowdfunding may be the solution to your problem. Two of the most popular crowdfunding platforms are GoFundMe and Kickstarter. But which one is better for you? In this article, we will compare the two platforms and help you make an informed decision.
What is Crowdfunding?
Crowdfunding is a way to raise funds for a project or cause by accepting small contributions from a large number of people, usually via the internet. Crowdfunding platforms such as GoFundMe and Kickstarter offer an easy and accessible way to connect with potential backers and raise the money you need.
GoFundMe
GoFundMe is a crowdfunding website that allows users to raise money for personal, business, and charitable projects. It was founded in 2010 and has since raised over $9 billion for various causes. One of the advantages of GoFundMe is that it has no deadline or goal requirements, so users can raise as much money as they need.
Fees
GoFundMe charges a platform fee of 2.9% + 30 cents per donation, which covers payment processing fees and helps keep the platform running. Users can choose to add an optional tip to GoFundMe at checkout. However, there are no fees for charity campaigns.
Success Rate
According to GoFundMe, more than 50 million donors have contributed to fundraising campaigns on its platform, and the average donation is $60. In 2019, GoFundMe reported a success rate of 33%.
Kickstarter
Kickstarter is a crowdfunding website that allows users to raise funds for creative projects, such as films, music, art, and technology. It was founded in 2009 and has since raised over $5 billion for various projects. One of the advantages of Kickstarter is that it has an all-or-nothing funding model, meaning that a project must reach its funding goal within a set timeframe, or no money will be collected.
Fees
Kickstarter charges a platform fee of 5% of the total funds raised, plus payment processing fees of 3-5%. If the project is unsuccessful, there are no fees.
Success Rate
According to Kickstarter, more than 19 million backers have pledged to Kickstarter projects, and the average pledge is $70. In 2020, Kickstarter reported a success rate of 37%.
Which One is Better?
Both GoFundMe and Kickstarter have their own strengths and weaknesses, so it depends on the type of project you want to fund.
If you're raising money for a personal cause, charity or social event, GoFundMe may be the better option due to its lower fees and lack of goal requirements. On the other hand, if you're seeking funding for a creative project, Kickstarter may be the better option due to its larger community of backers and all-or-nothing funding model.
Here's a quick comparison between the two platforms:
| Platform | Fees | Success Rate |
|---|---|---|
| GoFundMe | 2.9% + 30 cents per donation | 33% |
| Kickstarter | 5% + 3-5% payment processing fees | 37% |
In the end, it's up to you to decide which platform is the best fit for your specific needs.
References
- GoFundMe. (2021). About Us. Retrieved from https://www.gofundme.com/about
- Kickstarter. (2021). FAQ. Retrieved from https://www.kickstarter.com/help/faq/backer+questions
- Wind, J. Y., Ransbotham, S., & Farnsworth, P. C. (2019). Crowdfunding creative ideas: The dynamics of project backers in Kickstarter. MIS Quarterly, 43(4), 1165-1186.