Crowdfunding harnesses the power of social networks and the internet to give people the means to raise funds, help others overcome hardship, and meet aspirational goals.
If you’ve ever found yourself wondering, “What is crowdfunding?” “What does crowdfunding mean?” or “What are the benefits of crowdfunding?” Then keep reading. We’ll answer your questions about crowdfunding and give you top tips on bringing in donations.
The core principles behind crowdfunding include:
Crowdfunding can support many different types of causes, from helping cover medical expenses to enabling students to pursue their education. Some examples of areas crowdfunding can be used effectively include:
You can easily share your crowdfunding fundraiser via WhatsApp with friends and family or on TikTok and Instagram to harness the power of social media and increase engagement across a wider base.
In recent years, crowdfunding has transformed the traditional fundraising landscape, breaking down barriers between those in need and those available to help them.
The Charities Aid Foundation reported donations to charities of around £14 billion in the UK in 2025. Crowdfunding has made it possible for people to directly support those who need emergency financial assistance, contributing to the larger trend of individual giving. People often turn to crowdfunding when they can’t afford the rapidly increasing cost of medical care or health insurance and have to pay for out-of-pocket costs.
Sometimes, when government and nonprofit funding fall short, getting the help you need can be challenging. That’s why crowdfunding can be such a valuable resource. It allows you to reach out to your community for support in a way that’s easy and accessible. Whether you’re facing financial difficulties or hoping to impact the world positively, online fundraising can help you achieve your goals.
There are advantages to crowdfunding on both sides of the equation. The recipient can get much-needed funding, either for a personal or charitable cause, as well as the emotional benefits of feeling supported by the wider community. For donors, there is a major feelgood factor involved in coming together to support a worthwhile cause, yet the nature of crowdfunding means that each individual donor does not feel like they have to give more than they can afford.
For those looking for crowdfunding basics, here are some of the main advantages of crowdfunding:
Whether you have to pay back crowdfunding depends on the nature of the fundraiser. Donation-based crowdfunders, such as those on GoFundMe, don’t require any reciprocation. Loan-based crowdfunding does require repayment eventually, while reward-based and equity-based crowdfunding require offering supporters something in return.
Crowdfunding can work for anybody, and there is no cause too big or too small. Crowdfunding helps bring people together to help others fundraise and ultimately thrive.
Some people might worry that their fundraiser isn’t as worthy as others—but crowdfunding exists to help an array of people and needs. Whether you want to help your pet, raise money to pay for a memorial, or get help with bills, crowdfunding can allow you to overcome the financial barriers that may stand in the way when you need it the most.
Crowdfunding services are not just for individuals seeking emergency financial aid. Businesses can also use them to raise capital and fund new projects. Entrepreneurs can also use crowdfunding to finance their creative ideas or cover damages caused by burglary.
Donation-based crowdfunding: This type of crowdfunding is the most common when looking up “what is a crowdfunding campaign.” In donation-based crowdfunding, people search for and support a cause by donating to it without receiving anything in return.
The person running the fundraiser isn’t obligated to pay back donors or give them anything else in return for their contributions. GoFundMe crowdfunding is one of the major sites that uses donation-based crowdfunding.
Equity-based crowdfunding: In equity-based fundraising, the fundraiser organiser accepts money from people looking to invest, typically to help launch a business. In return, investors will receive small equity in the business or company.
Rewards-based: Through rewards-based crowdfunding on platforms like Indiegogo and Kickstarter, the fundraiser organiser provides a reward or products to donors, usually a service or physical item, in exchange for a contribution.
Note: GoFundMe only allows donation-based crowdfunding.
Absolutely. Feeling nervous about asking for help when fundraising online for personal needs is understandable. However, it’s important to remember that financial difficulties are something that many people go through. You might be pleasantly surprised to find out just how many people are willing to lend a helping hand during tough times.
While there’s no magic formula for crowdfunding the most donations, you can definitely take steps to set yourself up for success. It’s crucial to develop a fundraiser that is captivating and resonates with your community. Investing time into your fundraiser story will inspire your network of friends and family to take action.
We empower people to rally support for personal and charitable causes. We built our reputation by serving and supporting our community of organisers and donors, and we continue to build on that trust every day. GoFundMe’s giving community is more than 50 million strong and has raised more than $9 billion (£7 billion).
Our industry-leading fundraising tools help individuals, groups, and organisations share their stories far and wide. Even small donations can eventually grow into something extraordinary. GoFundMe has been used by people in the UK for a wide range of personal fundraising activities, from raising money for specialist cancer care, to emergency bill payments, academic fees, and providing aid after a disaster.
1. Create your fundraiser
GoFundMe helps you quickly create a fundraiser and tell your story. You can raise money as an individual or invite others to join your fundraising team. Learn more about team fundraising.
2. Share your fundraiser
Our sharing tools help you spread the word about your story via social media, emails, and even text messages. We make it easy to keep your network informed so you can raise more money quickly.
3. Easily accept donations
GoFundMe allows you to send donations directly to your or your beneficiary’s bank account, so you can get help right away.
When choosing a crowdfunding platform, there are several factors to consider.
GoFundMe is an established, trusted platform that has helped millions of people to reach their fundraising goals through a variety of mediums.
Trust & safety
Backed by the GoFundMe Giving Guarantee, our platform is the safest, most secure place to give and receive donations. We have a dedicated Trust & Safety team that works day and night to prevent misuse and make sure funds reach the right hands.
Advanced tools
The key to fundraising success is sharing your fundraiser with as many people as you can. With built-in social fundraising technology, GoFundMe crowdfunding makes it easy to spread awareness for your fundraiser so you can increase donations.
Fundraising resources
Our resource centre offers proven fundraising tips to set you up for success. Our blog is packed with content that helps you drive more donations to your fundraiser.
Following best practices can help you get your fundraiser off the ground and reach a wide audience, encouraging donations large and small from friends, family, and even total strangers.
From your title to your story and photos, your fundraiser story should be based on your needs and it should inspire people to donate. Before getting started, learn how to make your fundraiser successful with our fundraiser story tips. And don’t forget to upload several high-quality photos or a video to exponentially increase donations to your fundraiser.
Every time you share your fundraiser, you’ll bring in an average of £33 in donations—so share your fundraiser often on Instagram, Facebook, TikTok and other social platforms to encourage others to do the same. If you get enough momentum going, your fundraiser could go viral. Well-written updates with any news you share will keep supporters and potential donors engaged and in the loop.
It’s crucial to show donors that their contributions are greatly appreciated, just like we thank someone for doing a good deed. Instead of giving them gifts or rewards, sending heartfelt thank-you messages is an excellent way to let each donor know how much their support means to you.
Expressing gratitude can inspire donors to give even more and continue supporting your cause beyond the original crowdfunding goal.
Our blog post, How to Write a Donation Thank-You Letter That Gets You to Your Goal, will walk you through crafting the best thank-you possible. Be sure to check out our 20 Affordable Ways to Say Thank You to Donors list if you’d like to show your gratitude beyond an email.
When Constance was 13, she was offered a place at The Hammond School to study ballet. Her mum, who is raising Constance as a single parent, couldn’t afford the fees and all the associated costs – so turned to GoFundMe so that Constance could achieve her dream. Since the fundraiser was started in 2021, more than £120,000 has been raised and Constance confirmed her place at the school. Her mum wrote in an update on the page: “I cannot believe it’s been a year since you lovely people changed my daughter’s life.” She’s since passed all her GCSEs with “flying colours” too.
Florrie Bark is an inspirational little girl. Florrie was diagnosed with cancer in 2022 and her positive attitude and infectious personality has earned her thousands of followers on social media. Florrie decided she wanted to help other children with cancer and began making videos explaining what went on with her treatment and hospitals so they felt less scared. Florrie has also launched her own charity, BeMoreFab, to continue this work. She’s fundraising here.
In 2023, Storm Babet hit the UK hard. One of the worst affected areas was Chesterfield, in Derbyshire. Hundreds of people were affected by flooding from the adverse weather, destroying homes, businesses and livelihoods. The community came together to start this fundraiser to help. More than £100,000 was raised to help people start to rebuild their lives in the area.
Lisa is a 39-year-old mother of two boys who has been battling bowel cancer for several years. After surgery and chemotherapy initially seemed to work, the cancer returned and eventually stopped responding to treatment. Doctors have said that a specialist procedure and HIPEC treatment at Cleveland Clinic London could give her more time with her children, but the cost is far beyond what the family can afford. This GoFundMe was created to help raise the funds so Lisa can access the treatment and keep fighting to spend more time with her boys.
Crowdfunding platforms offer a unique opportunity to tap into the social conscience of many, raising funds for a wide variety of worthwhile causes. This creates a positive impact for both fundraisers and donors – both get an emotional boost and sense of wellbeing, while the funding for the cause is raised through a pool of small donations. Support a GoFundMe crowdfunder today, or consider setting up your own for a cause close to your heart, using a trusted, easy to use, and fully transparent platform.