How to pick the right crowdfunding site for your needs
Crowdfunding has become an essential tool for raising money. Platforms in Australia have grown in popularity in recent years, helping fund everything from new product launches to medical bills to scientific research. But with so many crowdfunding websites out there now, you might be wondering which platform will best fit your needs.
Before answering that question, there are a few things to consider, including site features, community, and fee structures.
Crowdfunding sites compared: Four key services to look for
Before we compare crowdfunding platforms in Australia, here are four key considerations to keep in mind.
Ease of use
Before choosing a crowdfunding platform, explore the site to see how easy it is to use and find the features you need. A good crowdfunding site should make it simple to start your own fundraiser or donate to someone else’s. It should also be easy to find a specific fundraiser, especially if you know the name of the fundraiser or the person who organised it.
Creating or contributing to a fundraiser should leave you feeling motivated or fulfilled, not frustrated. If all you feel is the latter, consider choosing another platform.
Customer support
Does the site offer email support, live chat, or a phone helpline? Remember that your friends and family members will be donating money, and they might need help, too. The people behind the site need to be honest, responsible, and available.
Tools for spreading awareness in your community
Take a look at the social networking tools the crowdfunding site offers. Look for a site with tools that make it easy to share your fundraiser via Facebook, Instagram, email, and many other ways. Since your social network is a vital piece of your crowdfunding effort, features like these are essential.
Crowdfunding fees comparison
A platform fee is when a crowdfunding site takes a percentage of all the money you raise through your fundraiser. Typically, crowdfunding platform fees can range from 0% for the organisers (with fees applied to each donation) to as much as 12%. Look out for punitive fee structures. Some platforms increase fees if you don’t meet your goal. Others have an all-or-nothing model, meaning you only receive the money you raised if you meet or exceed your goal.
Personal crowdfunding and funding for not-for-profits
These sites give anyone the opportunity to set up a crowdfunding fundraiser for almost any purpose. That includes a charity cause, raising money for someone going through a difficult time, or for a personal goal or dream.
Chuffed
Based in Sydney, Chuffed works with individuals in Australia to help raise funds via a crowdfunding model for personal causes, charities, non-profits and community and social enterprises. Fundraisers can be run by registered charities or by individuals raising money for a specific cause.
Fees: There are three pricing options to choose from with Chuffed. The Keep 100% model charges a payment processing fee to donors and asks for an optional donation, with a 0% platform fee. The Shared model takes the payment processing fee out of the donation, still with a 0% platform fee. The final option is Flat Fee, which charges a 4.9% platform fee and takes payment processing fees from each donation.
FundRazr
This platform helps individuals, not-for-profits, and companies raise money for causes they care about. They offer both keep-it-all fundraisers or all-or-nothing fundraisers, meaning you don’t get access to your funds until you’ve reached your goal.
Fees: Individuals can choose a free fundraising model with no platform fee for organisers. A third-party payment processing fee of 2.9% + $0.30 still applies per transaction. Organisations can also opt for a Standard model, with a 5% platform fee plus processing fees for advanced features.
GoFundMe
GoFundMe has a giving community of more than 200 million worldwide, attracted by the 0% platform fee, 24/7 customer care support, and unique donor protection guarantee. Over $40 billion has been raised globally, with over $1.1 billion raised for Australian causes since launch.
Fees: There is a 0% platform fee for organisers plus standard payment processing fees of 2.9% plus $0.30 per donation.
GoFundraise
GoFundraise is an Australian fundraising platform that helps connect not-for-profit organisations with people who want to donate to good causes. The organisation works with charities to boost their digital fundraising through marketing campaigns and events.
Fees: The platform charges a service fee of 0-6% + GST for donations. Other fees may apply depending on the type of fundraiser, the payment method of the donor, and optional voluntary giving fees.
mycause
mycause is a crowdfunding platform specific to Australia that can be used to raise money for a wide range of personal or charitable causes.
Fees: There’s no platform fee or commission to start a fundraiser; some registered charities might pay a 5% platform fee, depending on their contract with the website. Donors are asked to pay an optional tip when they donate, and beneficiaries pay processing fees of 2.5% plus GST.
Crowdfunding for creative projects
Acquiring funding for creative projects can be challenging. Crowdfunding is an effective way to raise money for something that you’re passionate about. It gives you the opportunity to tell the story of your project, explain what it means to you and how the funding would help. The following platforms are commonly used to fund creative projects.
Indiegogo
If you want help at every stage of your creative or entrepreneurial project, Indiegogo offers tools to help you get the job done, from pre-launch to crowdfunding and distribution. You can choose either all-or-nothing or flexible funding.
Fees: Platform fee of 5%, along with 3% + $0.30 per transaction for payment processing. There’s also a $25 international transfer fee for sending funds to banks outside the US. Australian users should factor this in.
Kickstarter
Creators seeking funding can use Kickstarter to bring their project to life. Fundraisers range from individual designers and inventors to large corporations testing new product ideas. In return for support, they offer their donors, known as ‘backers,’ a reward. This might be a small piece of the project, an early prototype, or one of the finished products they’re raising money to manufacture. You must raise all the funds you need, or you get nothing.
Fees: 5% service fee, plus 3% + $0.20 per transaction for donations over$10. Smaller ‘micropledges’ under$10 have a different processing fee: 5% +$0.12. This is an all-or-nothing platform, so you must reach your fundraising goal to receive any money.
Patreon
This platform allows you to gather recurring patronage for your art or other creative projects in the form of monthly subscriptions from fans. Patreon encourages users to offer rewards to fans as a way to repay them for their support.
Fees: Patreon is free to start but operates a percentage-based payment system for all income earned by creators. The percentage can be anywhere between 5% and 12% of total sales, plus any applicable taxes.
Pozible
Pozible is a crowdfunding platform specific to Australia. It’s aimed at people looking to fund creative projects, launch new products, and help local communities. Organisers can offer rewards to supporters for pledging money to all-or-nothing fundraisers.
Fees: All-or-nothing fundraisers pay a 5% commission. Donation-based campaigns have zero platform fees. Transaction fees are 2.4% + $0.30 for Australian bank cards, or 3.4% + $0.30 for international cards. Unsuccessful fundraisers do not incur charges, and fundraisers that earn over a certain amount may benefit from reduced fees.
Equity crowdfunding
Businesses and entrepreneurs can use these crowdfunding platforms to raise the money they need to bring their business plan to life. Equity crowdfunding in Australia is regulated by ASIC under the Corporations Act, and any crowd-financing platform operating in the country must hold the appropriate licences.
Birchal
Birchal works to connect equity investors of all sizes with startups and brands across Australia. Minimum investments can start as low as S$50, depending on the type of offer.
Fees: Birchal operates primarily via an all-or-nothing, commission-based payment model. This means it only takes a percentage of funds raised if the fundraiser meets its target. The platform charges founders an EOI campaign fee of $2,000 + GST, plus an administration fee of $5,000 + GST once the offer launches. Success fees then scale with the amount raised, from 8% on smaller raises down to 5% on raises over $1 million. There is no charge to investors.
Fundable
Fundable focuses on helping entrepreneurs, startups, and companies raise capital from the public through business crowdfunding. The site allows users to offer either rewards or equity in return for financial support. Users in Australia should note that to use Fundable, organisations must have a registered presence in the US. They can be headquartered elsewhere.
Fees: $179 a month, along with 3.5% + $0.30 per transaction for payment processing.
OnMarket
An Australian-based mobile app and online investment platform, OnMarket facilitates equity crowdfunding, private placements, and ASX IPOs. It allows retail investors to view funding updates, research reports and video interviews, and participate in early-stage and growth companies.
Fees: There are no bidding or brokering fees charged by OnMarket, which operates a success fee model. The exact percentages depend on the individual raise, but typically fall between 5% and 8% of total funds.
Real estate crowdfunding
If you want to buy a home or invest in real estate to make money, you’ll need capital to get started. This type of crowdfunding platform specialises in providing funding to real estate investors.
VentureCrowd
VentureCrowd is an Australian real estate crowdfunding platform that allows you to enter the real estate market by pooling your funds with other investors to buy a share of a property. The platform takes some of the work out of investing by giving you access to investments that have already been vetted.
Fees: It’s free to register, with a 0% transaction fee. Investors pay a 20% performance fee after a successful exit, and companies pay 6% on capital raised. Some projects have added fees, such as 1.65% p.a. of the gross asset value for property developments, or 2% for venture capital funds.
Niche crowdfunding
Crowdfunding has proven to be an effective way of raising money, such that there are crowdfunding sites available for a wide range of niches and special interests. The platforms below are designed to raise money for causes in specific areas and industries.
Experiment
A crowdfunding site dedicated to scientific research, Experiment helps researchers raise the funds they need to pursue new discoveries. Backers can review their impact through open access to data and the resulting journal publications.
Fees: Platform fee of 8% with a 3-5% payment processing fee. They only offer an all-or-nothing fundraising model, so fees are only deducted if the fundraiser meets its target.
Honeyfund
For engaged couples or newlyweds, this crowdfunding site helps raise funds for a wedding, honeymoon, or even the down payment on a new home.
Fees: It’s free to register. Bank deposits cost 1.75% + $0.30 for domestic Australian cards, or 2.9% + $0.30 for international cards. Australian users can also upgrade for $39.99 to unlock premium registry designs. This upgrade has its own processing fee, between 2.4% and 3.5% depending on payment method. There may also be an additional 1% cross-border fee applied to transactions in Australia.
Slated
Slated is an equity crowdfunding site for movies. This is a start-to-finish platform that helps with funding film projects, finding talent, and distributing the final project. It also offers extended services such as script and financial analysis for an additional cost.
Fees: It’s free to build a profile on Slated in Australia and to send messages within projects. An active project listing costs $34.99 per month plus a Marketplace Fees Agreement to display the project on the marketplace. Additional fees then apply at various stages of project development. These can be set as monthly fees or a percentage.
Choose the right crowdfunding platform for you
Use this comparison to find the crowdfunding platform that works best for your project or cause. For more crowdfunding inspiration, check out these fundraising tips and easy fundraising ideas. Start your fundraiser today.