Donation-based crowdfunding: This type of crowdfunding is the most common when searching for crowdfunding campaigns. People donate money to specific fundraising campaigns as a donation without receiving anything in return.
How does donation-based crowdfunding work? When people decide to support a charitable cause, they decide how much they are willing to donate. The person running the fundraiser isn’t obligated to pay back funders or give them anything else in return for their contributions.
Equity-based crowdfunding: In equity-based fundraising, the fundraiser organizer accepts money from people looking to invest, typically to help launch a small business or startup. In return, investors will receive a small equity in the business or company.
Rewards-based: Through rewards-based crowdfunding on platforms like Indiegogo and Kickstarter, the fundraiser organizer provides a reward or products to donors, usually a service or physical item, in exchange for a certain amount of money.
Note: GoFundMe is a donation-based crowdfunding platform, meaning it only allows donation-based crowdfunding.