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GoFundMe and CrowdRise are two popular crowdfunding sites that allow individuals (like you!) to raise money for different personal expenses, causes, and charities. Just like there are subtle differences between Kickstarter and Indiegogo, two popular reward-based crowdfunding sites, there are also similarities and differences between these two platforms. Choosing the right platform for your needs is key.
Do you want to raise money for a charity? Are you fundraising for unexpected medical expenses, or to cover education costs? This GoFundMe vs CrowdRise comparison should help clear up some details about each of these fundraising services and give some insight as to which one is best for your situation.
GoFundMe
GoFundMe is a crowdfunding site that markets itself as a platform where individuals can raise money for a wide variety of personal causes for established charities. This platform has categories for just about any cause you can think of, and an ‘other’ category in case your cause is really out of the box.
They also have a special section for major event fundraising – like Ferguson Rebuilds, Philippine Typhoon, and Colorado Flooding. GoFundMe allows users to raise money without a campaign deadline or to choose an all-or-nothing model (you must hit your goal to keep the funds raised. See all or nothing vs. flexible funding).
“San Diego-based GoFundMe was launched on May 10, 2010 and has quickly become the World’s #1 fundraising site for personal causes and life-events. Hundreds of thousands of people have raised over $700M from 8M donors for the things that matter to them most.” – Source.
Categories: medical, volunteer, emergencies, education, memorials, sports, animals, business, charity, community, competitions, creative, events, faith, family, national news, newlyweds, other, travel, and wishes
Cost: GoFundMe takes a 5% fee while the cost of credit card processing depends on your location (2.9% + $0.30 for USA and Canada) or if you are a charity. For information on pricing for other locations see this page.
Notable campaigns: There have been several campaigns that have gone viral in the media on GoFundMe, including money raised for Boston Bombing victims and businesses that were harmed during the Ferguson protests. I’ve included snapshots of them below. For more campaigns, check out our list of inspiring GoFundMe projects or those listed on the GoFundMe website.
Negative Reviews: In my research, GoFundMe has received mix reviews. There have been several scam projects, which can shake donor confidence. The main complaints I’ve seen have appeared on Highya and Reviewopedia, which are related to customer service and the fact that the platform takes a large fee.
“They now claim they’ve raised over 580 million – which means they’ve earned over 23 million for themselves. So who are they really helping? 5% + 2.9% = 7.9%” – Source.
Considering that Indiegogo’s new Life section charges no platform fees, I think this may begin to take market share from GoFundMe in the future.
Positive Reviews: Most of the positive reviews I’ve read underscore the platforms’ ease-of-use for non-technical users. GoFundMe makes it dead simple to set up an online fundraising campaign and gives you the tools to promote it to your social network.
“I just got involved with Go Fund Me. It’s super easy to get started and to set everything up. Everything is user friendly and there’s the functionality to promote your fundraising goals on Facebook and Twitter” – Source.
CrowdRise
CrowdRise is a spunky site that takes a very creative approach to online fundraising. One of the mottos prominently displayed on the platform is, “If you don’t give back no one will like you.”
This site allows you to raise money for personal causes as well as for charities. CrowdRise is a great place to tie in fundraising efforts with real world events. For example, instead of having people buy gifts for your wedding you can create a registry for your favorite charities and ask your guests to make a donation.
“CrowdRise was named one of the “best online fundraising websites” by Mashable and Forbes.” – Source.
CrowdRise also has what are called Impact Points, which donors get for specific actions on the platform. You can use these points for causes, exposure on the platform, or for CrowdRise swag.
Categories: run/walk, birthday, creative, volunteer, wedding, memorial, celebrity, and challenges.
Cost: For personal causes, fees average under 1% including credit card fees (because donors can choose to have 100% of their donation go to your cause, if they don’t CrowdRise takes 5%). For charity fundraising, CrowdRise takes a fee of 3-5% and there is a 2.9% + $0.30 credit card fee for each donation.
There are also monthly pricing options for nonprofits.
Campaigns: You can check out some of the causes on CrowdRise here. I’ve included a snapshot of a few below.
Negative Reviews: Most of the negative reviews on CrowdRise in the past have been regarding their fees and customization abilities.
“We wish there were a few more design options on the free use site. Other than that we really loved using this site.” – Source
“I’m giving crowdrise two stars only because it may offer charities some benefits I’m not aware of. As a donor, I was ticked off that crowdwise wants a 10% fee for processing a transaction.” – Source.
Positive Reviews: I really like the Impact Points that CrowdRise incorporates into its platform. Other users like how easy it is to set up a fundraiser and the types of campaigns on the site.
“Crowdrise was extremely easy to use. We were able to set up our campaign within minutes and add images, video, and copy. Donors find it easy to use and this has been helpful in garnering support and funds for our campaign.” – Source.
“They communicate: I have both emailed and tweeted back and forth with them… They are quick- I’ve gotten responses from them right away every time.” – Source.
Conclusion
When making the GoFundMe vs CrowdRise decision, it is best to consider the short-term and long-term benefits of each of these platforms. GoFundMe and CrowdRise are considered two of the top online fundraising websites and can help make your fundraising efforts a lot easier (and potentially more fun) as long as you know the ins and outs of each service.
Deciding on GoFundMe vs Crowdrise can include a number of factors – like price, how projects in your category have done on the platform in the past, and whether you want to explain your story more simply (which is more common on GoFundMe) or center your fundraising around a specific event (CrowdRise focuses on fundraising for birthdays, weddings, memorials, etc).
For more help and advice on how to run a successful online fundraising campaign, check out the CrowdCrux post 6 Online Fundraising Tips for Nonprofits and Individuals!
What online fundraising platform is your favorite?
