Where to launch a coronavirus crowdfunding campaign

As with a regular crowdfunding campaign, itโ€™s important to do your research and find a platform that best suits your business needs and goals. Theseย popular crowdfunding sitesย are a good place to start:

  • GoFundMe.ย Founded in 2010, GoFundMe is a popular crowdfunding platform used to raise money for emergencies and charitable causes. GoFundMe can be used by both individuals and businesses, but the most successful campaigns tend to center around service-based causes. Unlike other popular crowdfunding platforms, your campaign does not have to meet a deadline or goal requirement, meaning you keep everything you raise minus a 2.9% processing fee and 30 cents for every donation.
  • Kickstarter.ย Kickstarter is a rewards-based crowdfunding platform designed to โ€œhelp bring creative projects to life.โ€ To launch a campaign, you set a fundraising goal, deadline and different pledge levels for backers to choose from. Each pledge level provides something in return, such as a small gift, early access to a product, a personal experience and so on. Kickstarter is an all-or-nothing platform. A campaign that doesnโ€™t reach the fundraising goal within the timeline will go unfunded. For successful campaigns, Kickstarter charges 5% of the total funds raised, plus payment processing fees that range between 3% and 5%.
  • Indiegogo.ย Like Kickstarter, Indiegogo campaigns are usually centered around creative works, charities or start-up businesses. Unlike Kickstarter, a campaign can be fixed or flexible. A fixed campaign is all or nothing, whereas a flexible campaign allows you to keep all the funds whether or not you meet your goal. If you donโ€™t meet your goal on a fixed campaign, you will not be charged any fees. For flexible funds, you will be charged a 5% fee plus a 3% processing fee, plus 30 cents per transaction.
  • Kiva.ย Unlike other crowdfunding platforms, Kiva is a non-profit organization that connects entrepreneurs who need a loan with people who want to loan money. Kiva is ideal for individuals who are considered โ€œunbankableโ€ by traditional financial institutions because they have no collateral, no credit history or are otherwise seen as a โ€œriskyโ€ investment.

“We WILL get through this together.”ย 

What can I use my crowdfunding proceeds for?

According to GoFundMe, businesses that have used its platform to cover coronavirus losses have used the money theyโ€™ve raised for any or all of the following:

  • Monthly rent or mortgage payment.
  • Health insurance for employees.
  • Paid sick time for employees affected by COVID-19.
  • Crisis pay for employees who arenโ€™t sick but are out of work.
  • Employees who need time off to care for their children.
  • Other operational expenses youโ€™re struggling to pay.
  • Matching discounts for their donation spread out over time.
  • Discounted gift cards for when business is back to normal.
  • Priority booking for service-based businesses.
  • Free upgrade or add-on service.
  • Buy one now get two during the first week back in business.

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