What Is Crowdfunding?
Crowdfunding is the process of asking for financial support from a large number of people. Crowdfunding involves people individually contributing a small sum of money, relying on the volume of donations to reach a goal amount.
Although crowdfunding is commonly thought of as a strategy for business start-ups or projects, it’s also a good way for individuals, pets, charities and other organisations to raise money. Explore more about how crowdfunding works.
What are the advantages of crowdfunding?
Crowdfunding’s main benefit is that the benefactor does not have to ask for a large amount of money from a single individual, investor or organisation to receive the funds they need. Typically, smaller amounts of money will be donated by a large number of people in order to reach a goal amount.
Many people use crowdfunding when funding from the government and charities falls short, relying on the kindness of their community. Crowdfunding often takes place online, removing the traditional barriers that typically exist when asking for support and simplifying the process. Learn more about the advantages of crowdfunding.
Crowdfunding on GoFundMe
GoFundMe is one of the major crowdfunding sites to use donation-based crowdfunding. 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.
Crowdfunding can work for anybody, and there is no cause too big or small – the beauty of crowdfunding is that it exists to help an array of people and needs. At GoFundMe, we empower people to rally support for personal and charitable causes. Crowdfunding is made easy and risk-free, with a clear interface, quick withdrawals and a 0% platform fee. See how GoFundMe compares to other crowdfunding platforms.