What it is
Crowdfunding is a way of raising money online by inviting many people to give, usually in smaller amounts, through a shared campaign page. Supporters often find the page through email, text messages and social media shared by the organizer and their friends.
Crowdfunding sites are the online platforms that host those pages. They typically handle the donation form, payment processing and basic updates, and they may offer tools such as progress meters, supporter messages and receipts.
Platforms differ in who they are built for. Some focus on personal causes, some on nonprofits, schools and teams, and others on creative or business projects. Because of this, the best crowdfunding site for fundraising depends on who you are, what you are raising money for and who your supporters are.
How it’s traditionally been approached
Many organizers have traditionally started by asking friends, family or other groups which sites they have used and trusted. Word of mouth, a familiar name or a link a supporter has seen before often shaped the first choice.
Others have compared platforms side by side on features such as fee structure, how and when funds are paid out, ease of sharing, mobile friendliness and customer support. Some also look at whether the platform is set up for tax-exempt organizations, individuals or both.
Crowdfunding has often been paired with other approaches, such as events, mailings or in-person asks, rather than used alone. Organizers have also commonly read the terms of service closely, since rules about allowed campaigns, fees and payouts vary by platform.
How the right fundraising consultant may help
The right fundraising consultant may help you step back from the long list of platforms and clarify what you actually need first. That can include your audience, your timeline, whether you are an individual or a registered nonprofit, and how comfortable your team is with online tools.
A first conversation is generally a chance to talk through your cause, your goals and any past fundraising experience. A consultant may walk through how different kinds of platforms tend to work, point out questions to raise, and help you think about messaging, sharing and thank-you plans.
Helpful questions to ask include: How have you helped groups like mine choose an online platform? How do you stay independent of any one company? What do you suggest I confirm about fees, payout timing and platform rules? How would we handle registration, permits or tax questions with the right professionals? Results are never guaranteed, but a thoughtful plan may make the process feel clearer.
The bigger picture
Asking others for help can feel vulnerable, especially when the need is personal or time-sensitive. Choosing a platform and watching a campaign unfold can bring hope, but also stress, so it can help to set realistic expectations and to share the workload with trusted friends or teammates.
Fundraising also touches your finances and peace of mind. Taking time to understand fees, rules and your own obligations before launching may ease worry later. If a hardship has also affected your health or wellbeing, Providers.plus may help you find supportive resources alongside your fundraising work.
Keep in mind
- Fundraiser.biz is an independent educational directory, not a professional advisor, and it does not name any platform as the best.
- Fees, payout timing, allowed campaign types and platform policies differ and can change, so read each site's current terms before you start.
- Charitable solicitation registration requirements vary by state, so check current state and local rules and any required permits before launching. Raffles and other gaming-style activities have their own laws that vary by state and sometimes by city or county.
- Whether a gift is tax-deductible depends on the recipient's tax-exempt status and current IRS rules, so confirm with a tax professional rather than assuming. No consultant or platform can guarantee fundraising results.
Not sure where to start? Answer a few gentle questions and choose who you’d like to hear from.
Keep exploring
Online, peer-to-peer & crowdfunding
Frequently asked questions
What are the best crowdfunding sites for fundraising?
There is no single best crowdfunding site for fundraising, because the right choice depends on your cause, your audience and whether you are an individual or a nonprofit. Many people compare several platforms on fees, payout timing, ease of sharing and support. A fundraising consultant may help you weigh these factors for your situation.
How do I choose a crowdfunding site for my fundraiser?
Start by defining your goal, your timeline and who you expect to give. Then compare platforms on features, costs, payout rules and policies about the type of campaign you plan. Reading current terms of service carefully is an important step.
Are crowdfunding sites free to use?
It varies by platform. Some charge no listing fee but take a portion of donations, and most payment processors charge their own fees. Check each site's current fee details before you commit.
Are donations through crowdfunding sites tax-deductible?
Not necessarily. Deductibility depends on the recipient's tax-exempt status and on current IRS rules, so it can differ from one campaign to the next. Please confirm with a tax professional before saying or assuming a gift is deductible.
Do I need a permit or registration to run a crowdfunding campaign?
It depends on who is raising the money and where. Charitable solicitation registration requirements vary by state, and some activities, such as raffles, have separate rules. Check current state and local requirements, and ask a qualified professional if you are unsure.
Can a fundraising consultant help me with crowdfunding?
Possibly. A consultant may help you choose a platform, shape your story, plan how to share your campaign and think through thank-yous and follow-up. They cannot guarantee results, but their experience may make the process more organized.
Educational resource. Fundraiser.biz shares general information and connects people with independent fundraising consultants. It is not professional advice. Talk with a qualified professional about your own situation.