> > Crowdfunding

Crowdfunding



Researched and written by one of our volunteers: Chris Hosking




What is Crowdfunding?

Crowdfunding is a method of getting finance by sourcing small amounts from a relatively large number of people rather than getting large amounts from one or a few.

This allows individuals or organisations to source funds from anyone via a website or crowdfunding ‘platform’.


Donation Crowdfunding

The donation model of crowdfunding is a means for individuals’ or charities to raise money for social or charitable projects, to gather a community online and to enable them to donate to a project.


Which site should I use?

It really depends on your own preferences and circumstances.

Some sites are easier to use, but it costs more, and others are the opposite.

It is recommended to browse the sites first, so you can find out which one is the best for your own needs.

Here, we have outlined 4 of the best crowdfunding sites, but there are a lot more out there.

So if you don’t find the right site for you, don’t worry!

These sites are good examples of what you can expect from crowdfunding sites:





SpaceHive


What is great about SpaceHive?

  • Highly detailed profiles, which attract people to your project.
  • Free to upload projects.
  • All projects are verified by an advisor before they are made ‘live’, where you can ask questions and will be informed of any problems with your project (if there are any).
  • Fantastic social media links (Facebook, Twitter, tumblr etc.), where your project can be advertised to a wider audience.
  • People can donate by either credit or debit card.
  • No time limit to reach target.

What are the negatives?       

  • 5% of total raised is automatically charged for using this site (if you reach target).
  • The funding is “all-or-nothing”- you either make 100% or you make nothing. If people have already donated, and you fail to make the target, they will be refunded.
  • You can only raise as much money as you originally ask for.
  • There are transaction fees ranging from 1.4% - 3.4% of the amount donated + 20p per pledge deducted from each donation for credit cards. It is 0.5% for debit card donations. These are only charged if the project hits its funding goal.

Take Me There!







Buzzbnk


What is great about Buzzbnk? 

  • "Milestone" concept which helps you break down your target into realistic stepping stones towards your overall goal (you keep all funds raised if you reach at least your 1st milestone, but you can continue to raise money after this. 
  • Eg: you might require item C, but first you need to have items A and B. Buzzbnk lets you break down your project into these milestones to make it easier to achieve realistic goals.  Also people who donate can see that their money is more likely to help someone quickly; and that eventually it could lead to the larger item, rather than worrying whether the larger target will ever be raised.
  • As you reach each milestone you are welcome to extend your fundraising period to aim for that next big goal.
  • No limit on how long you can fundraise for.
  • If you are a UK Registered Charity they can offer a fully automated collection of Gift Aid for those projects and benefits which are applicable.
  • You can not only crowdfund cash, but you can also crowdfund donations of items and volunteer time.
  • You can add pictures to each of your rewards you are offering.
  • Gift Certificate function so that you can encourage your network to buy Gift Certificates in your project for family and friends.
  • Very easy to find projects through search function, and categories.
  • Supporters can pay by credit/debit card, or by cheque/bank transfer (if donation over £500.

What are the negatives?      

  • Non-refundable £25 registration fee.
  • 5% of total raised is automatically charged for using this site (if you reach target).
  • The funding is “all-or-nothing”- you either make it 100% or you make nothing. If people have already donated, and you fail to make the target, they will be refunded their donation.
  • There is a 2% card transaction fee for credit cards, and 37p for debit cards.  This is not refunded if you fail to make the target.

Take Me There!







CrowdPatch 


  • What is great about CrowdPatch?       
  • Commission Free. Amazingly, there are absolutely no fees involved for either the project, or people donating.
  •  ‘Patches’: connects local communities and projects together, and allows you to connect through the digital environment.
  • The funding is ‘keep-it-all’. You do not have to reach your target to get any money. You keep everything that is donated
  • People can donate by either credit or debit card.
  • No time limit to reach target.

What are the negatives?       

  • There is much less support from the website owners, and any problems may take longer to resolve.
  • Profiles are more basic, and might not stand out as much.

Take Me There!








Yimby 


What is great about Yimby?       

  • Yimby is run by the people behind Justgiving. This means that your project is part of a wide community of charitable causes.
  • It's separate from the main Justgiving site - the financial aspects, and the way it operates are very different, so be careful, and make sure you are signing up for the right part.
  • Fantastic social media links (Facebook, Twitter, tumblr etc.), where your project can be advertised to a wider audience.
  • There is a lot of support from Yimby, and they will do their best to make sure you reach your target, by encouraging people who donate, to advertise the project.
  • People can donate by credit/debit card, text, or PayPal.

What are the negatives?        

  • 5% of total raised is automatically charged for using this site (if you reach target)
  • The funding is “all-or-nothing”- you either make it 100% or you make nothing. 
  • If people have already donated, and you fail to make the target, they will be refunded their donation.
  • There are card transaction fees for credit cards debit cards (either 1.3% or 16p per pledge).  This is refunded if you fail to make the target. There are also standard charges for using PayPal or text messages (check with your own operator for these charges). If you donate by either of these two methods, you will not be refunded if you fail to make the target.
  • You can only raise money for a maximum of 90 days, so be extra sure that your target is realistic. 

Take Me There!





Have you used a Crowdfunding website?  If so share your

experiences in the Comment box below.



Return to top









Return from Crowdfunding to Fundraise for Your Disability





Return to Disability Grants Home
















Don't miss it!

Disability Grants News

FREE monthly up-dates



Your E-mail address is totally secure

We will only send you Disability Grants News


Back Issues Page





Popular Pages


Grants for Children

Grants for Children



Grants for Families

Grants for Families



Grants for Adults

Grants for Adults



Holiday Grants

Holiday Grants



Grants for Disability Equipment

Disability Equipment



Grants for Housing

Grants for Housing



And....for grants in

YOUR local area

Grants UK

Grants UK







Testimonials






Accessibility