Solving the Problem of Choosing the Right Crowdfunding Platform
Kate Abbey-Lambertz reported for The Huffington Post on the ambitious plans of 16-year-old Isabel Ivanescu to convert vacant houses into residences for homeless persons in Detroit launching a fundraising campaign via a crowdfunding platform to raise the $80,000 it will take to buy and convert the first of what she hopes will be many more houses.
Trending Article | Nonprofit Quarterly | Kate Abbey-Lambertz | 02/25/2016
This Teen Has A Simple Idea To Tackle 2 Of Detroit’s Biggest Problems
Isabel Ivanescu is a high school senior with a simple idea to achieve an ambitious goal: She wants to end homelessness in Detroit by renovating abandoned houses.
The 16-year-old remembers being a little kid, looking out a car window and seeing a man in Detroit who appeared to be homeless standing just a few feet from an abandoned house.
“I just started to think, why can’t he have it?” Isabel recalled.
Although she knows solving homelessness isn’t as simple as giving away houses, that feeling has lingered.
Insider Outlook | Michael Goble | MobileCause Sales Director
Not Every Crowdfunding Platform Is Created Equally
The crowdfunding platform Ms. Ivanescu chose to raise the $80,000 she needs to get started may work well for her personal passion project, but may not the best choice for education, healthcare, faith-based and other charitable nonprofit organizations looking to raise money for their cause.
Factors like rules and limitations that could be imposed on your campaigns, along with credit card processing fees and other charges that vary across crowdfunding platforms, and can significantly impact how well your organization can effectively raise money to fulfill its mission.
For example, depending on the crowdfunding platform that you choose and the type of crowdfunding campaign that you run, it’s possible that if you fail to reach your fundraising goal, even by a small amount, any money your organization raises could be refunded back to donors. Or, if your crowdfunders are successful in helping you to reach your target, high credit card processing and other extra or hidden fees would reduce the amount of money that your organization receives, even after all of their hard work.
Summary: Carefully research your options to pick the right crowdfunding platform for your organization by choosing one that will let you keep any amount that you raise, and will allow you to lower the cost of fundraising with a low flat-rate credit card processing rate on all donations, including those made with American Express, zero transaction fees. That way, you’ll be able to keep more of the money you and your volunteer fundraisers collect for your cause.