GoFundMe is great for personal causes and life events. The site is also great for nonprofits because of the flexibility with tax-deductible campaigns. All three platforms allow you to raise money without taking on debt or giving up equity. There's also a social aspect of fundraising which can help you gauge market interest if successful. You will, however, have to pay taxes on any funds you receive on any of the platforms.
I would recommend Kickstarter to anyone who is wanting to launch a product, but stress the importance of preparation. I found this site to be easy to use, and fairly successful. It is up to the person trying to raise money for a cause to make it work. Pledges to date are more than every other crowdfunding site combined Backers on the site are looking for creative projects Offer resources to help you build the best project.
No deadlines or goal limits 5-minute support guarantee Optimized for sharing Personal causes are encouraged. This is one reason why backers are extremely cautious of funding projects that do not already have a prototype or some sort of legitimacy proving its validity. A situation like this is troublesome for everyone involved. We highly discourage project creators to misuse the platform for personal gains.
In doing so, you not only ruin the market for others but are also robbing genuine backers of their hard-earned money. Kickstarter backers are not VC investors or tech big wigs. They are ordinary people like you and me, who either believe in supporting new talent or who are daring enough to bet their money on innovation and technology.
These backers are usually industry experts such as gamers, game journalists or tech enthusiasts who are always on the hunt for new and innovative products for which they can be first buyers. People love getting the latest smart gadget, the cool game that is available nowhere else, the gadget that they can boast about to their friends.
Crowdfunding is a world of coolness and creators that have an interesting, functional product is bound to find success on the platform. For this reason, it makes sense to launch a Kickstarter campaign through a legal business structure, such as a Limited Liability Company LLC , as opposed to posting it as an individual.
A traditional kickstarter is a device that sets something in motion. Kickstarter uses an all-or-nothing funding approach, so projects only receive funding if they reach their goal. In other words, if your project or idea does not reach its original funding goal, then funds are not collected and no money is paid out.
The name on the kickstarter profile is just like the name on an LLC. You absolutely do need to use your real name for so many reasons. Kickstarter must approve all projects before they can go live. Approval can take up to three days. While LLCs are still able to create offerings on StartEngine, their corporate documents do not lend themselves well to Equity Crowdfunding.
Otherwise, business recipients must be owned by a business account. Perhaps the most significant difference is that if you want to use Kickstarter for a new product, you must have a prototype to show potential backers. Kickstarter only allows device and new product projects that already have an existing prototype.
The takeaway: Kickstarter has a higher success rate because of its quality control and more selective process. Helpful tips.
Can you lose money on Kickstarter? What happens if Kickstarter project is overfunded? Which is better Kickstarter or GoFundMe? Do you have to pay back Kickstarter backers?
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