Crowdfunding Basics

 Beware of crowdfunding sites claiming to be ‘100% Free, they are unethical and will charge donors more. The three major types of crowdfunds: - 

• Institutional cause or organization
• Private Cause
• Equity Crowdfunding

Institutional cause or organization - this is typically a start-up company or commercial project. These types of crowdfunds are donation-based, but recipients will often refuse all funds if the project does not meet its goals (this is appropriate on projects that cannot succeed without the funds for the complete project). 

Private Cause - this is a person or group requiring immediate help; such as a person with a medical challenge or need, a homeless family or athlete requiring transportation to a sports championship.  These types of crowdfunds are donation-based, and it is not unethical for recipients to accept funds even if the project does not meet its goals. 

Equity Crowdfunding - Equity crowdfunds promise the investors attractive remuneration, a percentage of the revenue or a share in the company. These funds are growing very popular because some of the companies established with these funds develop technology to make them particularly attractive to acquisition. 

For the most part, the top crowdfunding Web sites specialize in one the below areas:

• Personal Crowdfunding
• Web Startup
• Technology Start-up
• Film Projects
• Equity Crowdfunds 

Here is a list of the top 10 crowdfunding sites, they focus and fees:

GoFundMe - 710M for personal fundraising. 2.9% fee+.30

Kickstarter - Creative only, 5% fee. 

IndieGogo - Fee 9%; only if goal is reached 5% is refunded, 3% processing; $25 for international wire. 

TeeSpring - T-shirt crowdfunding site; Fee varies. 

YouCaring - 5% fee is suggested to donars, 2.9% +.30 proceessing fee

Causes - non-profit, 4.75% processing. 

Crowdrise - Free Acct 5%, paid 3%; processing 2.9%+.30

Givefoward 5% fee

Patreon - Pledge on-ongoing amount, Creative only 4% fee

FistGiving - non-profits; 2.5% fee