How it works
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.
- Create your fundraiser: Crowdfunding starts with a clear goal in mind and a plan to execute it. 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. Once the page is set up, you’ll then share it with friends, family, and on social media.
- 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.
- Easily accept donations: When creating your GoFundMe, you’ll add your banking information, and add a beneficiary if you’re raising donations for someone else, and you can start receiving your funds as soon as supporters start to donate. There is a small transaction fee deducted for each donation.
How do I know if crowdfunding is right for me?
Crowdfunding can work for anybody, and there is no cause too big or too small. You only need to tell your story in a simple and honest way, and share it with friends, family, coworkers and your broader community. It suits things like urgent needs, local projects, creative ideas, and testing a product idea. Whether you want to raise money to pay for a memorial, get help with bills, or get help with a personal issue that needs funds, crowdfunding can help you figure out the financial things that might get in the way.
Is it okay to raise money for myself?
Absolutely. Thousands of people start online fundraisers every day to raise money for themselves. It’s understandable that you might be nervous about asking for money. But it’s important to remember that nearly everyone has experienced financial hardship at one point or another. You might be surprised by the number of people who want to support you when you need it most. Just make sure to be clear about how the funds will be used and update your supporters often.
What is the best way to get more donations?
The best way to get more donations is to share your fundraiser with as many family and friends as possible, and make sure your story is relatable to your audience and understandable. A compelling story and high-quality images go a long way to getting your funds raised.
How long does it take to raise money through crowdfunding?
There’s no fixed time for how long the money will take to raise. Small and large fundraisers have been met in a few days after going viral, while others take months to raise. The story you tell, how often you update donors, and who shares your fundraiser play major roles in how well it does.
The rise of crowdfunding
In recent years, crowdfunding has transformed the traditional fundraising landscape, breaking down barriers between those in need and those available to help them. It lets people give to causes they care about quickly, and platforms like GoFundMe now host countless fundraisers each year and help drive millions of donations.
When people struggle to cover the cost of medical care for a life-changing diagnosis and have to pay for out-of-pocket costs, they often turn to crowdfunding for help.
What are the different types of crowdfunding?
Crowdfunding can be used for a host of different reasons, and there are four distinct types of crowdfunding for you to choose from.
Donation based
This type of crowdfunding is one of the most common when looking up “what is a crowdfunding campaign.” GoFundMe is one of the major crowdfunding sites that uses donation-based crowdfunding.
- What it is: People give to a cause without expecting money back.
- Who it suits: Personal needs, community causes, charities.
- Typical return expectation: None.
- Example: A local community fundraiser to restore a park.
Rewards based
Through rewards-based crowdfunding on platforms like Indiegogo and Kickstarter, the organiser of the fundraiser provides a reward or product to donors, usually a service or physical item, in exchange for a contribution.
- What it is: Supporters of the cause are rewarded with a product or perk in return.
- Who it suits: Creators testing a product or small businesses pre-selling items.
- Typical return expectation: A reward such as early access or merchandise.
- Example: A designer funds a first run of shoes by offering early units.
Equity based
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 a small piece of equity in the business or company.
- What it is: People invest for a share in the business.
- Who it suits: Startups looking for growth capital.
- Typical return expectation: Shares and potential financial returns if the business grows.
- Example: A tech startup raises funds in exchange for equity.
Note that GoFundMe only allows donation-based crowdfunding.
Advantages and disadvantages of crowdfunding
Many people turn to crowdfunding to rely on the kindness of their community. Online fundraising removes the traditional barriers that typically exist when asking for support, making it simple to overcome financial obstacles quickly or raise money for a worthy cause.
Benefits of crowdfunding
- There’s no application process
- There are no long wait periods to receive your funds.
- Crowdfunding takes the fear out of asking for financial help. It’s simple to share your fundraiser with your network of friends and family members on social media.
- Crowdfunding makes it easy to reach people outside of your network.
- Good for testing product demand via rewards campaigns.
- Can build a community around a project or cause.
Disadvantages and risks to consider
- Crowdfunding takes time to promote and maintain.
- Not every fundraiser reaches its goal, so results are not guaranteed.
- Some models carry legal and tax obligations for organisers and investors.
- Equity and debt crowdfunding involve securities rules and repayment risk.
- Transaction fees and platform rules reduce final funds available.
Choosing the right crowdfunding platform
A crowdfunding platform hosts fundraisers online, processes payments, and offers tools for sharing and updates.
Platform selection criteria
- Audience and reach of the platform.
- Category fit for your cause or product.
- Trust and safety measures.
- Fees and payment processing costs.
- Payment methods accepted.
- Withdrawal rules and timing.
- Customer support and resources.
Here’s what sets GoFundMe apart from the rest:
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 ideas and tips to set you up for success. Our blog is packed with content that helps you drive more donations to your fundraiser.
Crowdfunding best practices
Tell a compelling story
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. For more tips, see these helpful blog posts:
Build trust and social proof
Every time you share your fundraiser, you’ll bring in an average of $43 in donations—so share your fundraiser often on Instagram, Facebook, 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 can share will also keep supporters and potential donors engaged and in the loop. For more tips, see these blog posts:
Promotion checklist
- Make a share plan with friends and family.
- Post on social media and in relevant groups.
- Send personal messages to likely supporters.
- Use email and messaging apps for regular updates.
- Ask supporters to share their donation and the fundraiser link.
- Use visuals and short videos to boost engagement.
Thank your donors: updates and accountability
Once you’ve raised the funds you need, updating your supporters and being transparent about accountability is a must. Let them know you’ve reached your goal, and offer transparency around the spending of the funds so you gain added trust.
Everyone loves being thanked after doing a good deed, and it’s no different with your donors. In lieu of gifts or rewards, sending thank-you messages is a way to make each donor feel appreciated. And as a bonus, expressing gratitude can encourage additional donations and increase donor retention.
Our blog post Templates on How to Write a Donation Thank You Letter will walk you through the process of crafting the best thank-you note possible. Be sure to also check out our list of 20 Affordable Ways to Say Thank You to Donors if you’d like to show your thanks beyond an email.
View more tips
Alternatives to crowdfunding
Crowdfunding is one of the best ways to raise money for specific causes or business ventures, especially for those looking to raise money without needing to pay it back. There are, however, a couple of alternatives to think about if you need to raise funds quickly.
Business loans
A bank or business loan is a popular choice for many, one that offers a line of credit with clear repayment terms. Although the repayments and interest are typically higher than crowdfunding, it’s a great way to get money quickly, with a clear moving-forward process.
Other funding routes to consider
Outside of business or bank loans, here are a few alternatives that have trade-offs in cost, control and speed. Choose what matches your needs and risk tolerance:
- Grants from charities or government bodies.
- Angel investors or venture capital for high-growth startups.
- Personal savings or friends and family support.
- Invoice finance or business credit lines.
