Is “Free Crowd Funding” Really Free?

Now that you’ve decided that crowdfunding is best suited for you, it’s important to understand this platforms user terms. Any individual will always be excited whenever they get anything for “free.” If any firms charge a 0% platform fee, they create the selling claim to be “free.” Although this is true their can be some hidden charges always. Some platform also asks the donors to pay in form of donor tip which can be as high as 8%.

Deduction Taken Before You Withdraw

Some Platforms deduct the fees directly from organizer account before transferring the donation amount to organizers account. Till now this was the most common ways for several platforms.A concern of donor is taken before donation to ensure the trust while paying.In this case many times the burden of deduction can be as high as 7% which directly effects the Target set by the organizers.

For Example: If a organizer  wants INR 10 lakh and set the same as target goal at the end of campaign they will end up getting INR 9.1 lakh although the target was completed (as 9% was already deducted ).

What are the possible hidden charges a Crowdfunding website can charge?

  • Subscription Fee:  The annual/ monthly or one-time cost for using the platform. 
  • Platform fee: As the form of payment, the percentage that each platform deducts per donation.
  • Donor Fee: In this case, the donor is charged instead of the fundraiser, it can be considered as an alternative to the platform fee.
  • Process Fee :The payment gateway charges per donation to handle the transaction.

Our Recommendation : Crowdera

 

What is it?
Crowdera is a top crowdfunding campaign which allows the individuals, groups, and nonprofit organizations raise money online, completely free.

Why do we recommend it?

Crowdera is a really free platform and only charges for online bank transaction fees (Process fee) without any hidden transactions from the fundraisers and the donors. It also provides many advanced features to make fundraising easy and manageable.

" crowdfund the things that matters most "
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