It seems that a new crowdfunding or crowd investing platform crops up every few days. With seemingly endless opportunities, it's important to choose a platform that fits your cause, reaches your target audience, and helps you tell the brand story that matters most to you.
Below are six of the best platforms for finding the funds needed for your particular model:
1. Looking to raise donations for your nonprofit?
Try Razoo
Who? Anyone can fundraise on Razoo – for a personal cause or for one of the 1 million+ registered US nonprofit organizations.
What? Razoo accepts donations that are received and receipted by Razoo Foundation, a registered 501(c)3 charity that operates a donor-advised fund to fulfill donor advisements.
What’s the Fee? Razoo Foundation retains a low, flat 4.9% on all donations, one of the lowest transaction rates in the online fundraising industry.
How Will I Process Payments? Razoo partners with U.S. Bank to securely process your donations.
Campaign ideas? Here’s a list of Razoo’s best campaigns.
2. Want to support a charity (your own or someone else’s?)
Try Crowdrise
Who? Anyone raising donations for a charity.
What? Donations to US-Based 501(c)3 charitable organizations through Crowdrise are 100% tax-deductible. You'll automatically receive an email receipt that meets the IRS requirements for a record of your donation.
What’s the Fee? Crowdrise charges a flat 3 - 5% (depending on your membership level), plus credit card fees.
How will I process payments? Network for Good or Amazon Payments.
Campaign Ideas? Run/Walk, Do something Ridiculous or Donate your Birthday, among other things.
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3. Need investors for your social enterprise?
Try Return On Change
Who? Startups in Tech, CleanTech, EdTech, Life Sciences, & Social Enterprises.
What? This online funding portal seeks to meet all of startup's capital raising needs, as well as providing a place where investors can find socially innovative businesses to invest in.
What’s the Fee? Return on Change does not charge posting fees. Broker dealers on the Return on Change site charge a 6% fee.
How will I Process Payments? You will need a business bank account to ‘close’ and receive the capital that you raise.
Campaign Ideas? Here’s a list of startups that have been approved.
4. Looking to run a fundraising campaign?
Try Indiegogo
Who? Anyone looking to fund a creative or cause based project. There is no application process, so anyone can be involved!
What? Indiegogo provides a platform for your family, friends and anyone else you find through digital platforms to donate to your campaign.
What’s the Fee? When your campaign raises funds, Indiegogo charges a 9.0% fee on the funds you raise. If you reach your goal, you get 5.0% back, for an overall fee of 4.0%.
How will I Process Payments? Visa, MasterCard, and American Express credit or debit cards, or PayPal.
Campaign Ideas? Check out Indiegogo’s recent success story, </span>Occupy Love.
5. Looking to fund a project?
Try Kickstarter
Who? Creatives looking to fund projects in film, music, art, theater, games, comics, design, photography, and more.
What? Project creators set a funding goal and deadline. If people like a project, they can pledge money to make it happen. Funding on Kickstarter is all-or-nothing — projects must reach their funding goals to receive any money.
What’s the Fee? Kickstarter collects a 5% fee from a project’s funding total if a project is successfully funded. There are no fees if a project is not successfully funded.
How will I Process Payments? Kick Starter uses Amazon Payments.
Campaign Ideas? Check out Kickster’s staff picks.
6. Trying to launch a new product?
Try Crowdfunder
Who? US based businesses with a product or service.
What? Crowdfunder connects your business to their local networks of 20,000 interested investors.<br>What’s the Fee? 5% if you meet your goals plus payment processing fees.
How will I Process Payments? Crowdfunder uses Amazon Payments.
Campaign Ideas? The most funded project to date is It's For Life, a company producing consumable and convenient health products.
Helpful points to remember:
1. Posting a project is not a set-it-and-forget-it project. You must use social media to get the word out, and make funds come in.
2. Once you launch your campaign, it can be almost a full-time job to reach your goal.
3. Individuals and companies with customers, an audience, or a social/professional network that can be converted to “backers” tend to be most successful.
Have a favorite platform you want to share with us? Leave it in the comments below.