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Top ten crowdsourced funding platforms

   /   Feb 8th, 2011News

Whatever project you can dream up, there’s a crowdsourced funding platform out there for it. Entrepreneurs, investors, journalists, artists, environmentalists, educators, nonprofits and charities are using these sites to fundraise and turn their visions for social change into realities. These sites provide more than just a donor base — they create an online community of people who care about your cause and want to follow your progress.

1. spot.us is a funding platform for citizen journalism. Users can submit story tips, and journalists pitch their story ideas for funding. Reporters can also recruit users to help them with a story, which is later posted on the site. Reporters keep 90 percent of the revenue, the rest goes to site editors. If you’re low on cash but want to participate, you can support a story of your choice at no cost through earning points by taking a survey with a spot.us sponsor. The site hosts some excellent stories done by hardworking, independent investigative reporters.

2.  33needs is a web application that connects investors to small-scale entrepreneurs around the world. The investor receives 3% and 33needs receives 5% of the funding target for a project. The site helpfully divides up projects into categories such as “education,” “the planet,” “community,” and so on. It’s brand new, and looks like it’s off to a promising start.

3.  Profounder aims to help entrepreneurs get a community to invest in their project, creating a support base in addition to bringing in money. The site’s team gives guidance on creating a fundraising pitch, managing investments and returns, and legal issues. Profounder’s blog illustrates various stories of helping small businesses expand and get their products to new markets.

4.  Microplace is a Paypal-owned company that allows investors to put their money into projects that aim to alleviate poverty. Users create an account on MicroPlace like you would at any brokerage firm. Users then receive quarterly interest payments and portfolio statements. When an investment matures, users can either get their money back or roll it over into anther investment.

5.  Kickstarter targets artists and entrepreneurs who need funding to bring their creative projects to life. Its use of video as a means of sharing projects makes it particularly fun and simple. A project cannot begin, and no credit cards are charged, until enough pledges have been made to reach the funding target, so as to discourage poorly-executed projects. Project creators inspire people to open their wallets by offering rewards, such as “thank you” mentions on their personal blogs, or products from their projects.

6.  IndieGoGo, similar to Kickstarter, also caters to artists and creative entrepreneurs. What’s different here is that you can close a project before full funding, but the transaction fees also go up from 4% to 9%. Users can offer unique perks or tax deductions to contributors in lieu of offering profit, but always keep 100% ownership. IndieGogo benefits from an attractive, user-friendly site that makes it fun to browse through the projects.

7.  Crowdrise allows you to support charities and volunteer organizations by voting for their projects on the site, donating money, or helping them fundraise. You can create a profile to help raise money for a charity, or join an existing project team. Crowdrise deducts 5% on donations made through the site and charges a $1 transaction fee for donations under $25 or a $2.50 transaction fee for donations $25 and over. Crowdrise already has 1.5 million charities on board.

8. Firstgiving helps organizations plan, execute, and measure successful online fundraising campaigns and events. Nonprofits can make a page to send to their supporters, or individuals can create a page to raise funds for an organization. With 8,000 organizations and 13 million online donors participating, and $1 billion raised online, Firstgiving’s services appear wide-reaching.

DonorsChoose allows teachers to solicit funding for specific needs in classrooms and schools. The site is well-organized, with tags for different kinds of projects, and it showcases quotes from donors about how good they feel after giving. Almost 7,000 donors have reached 45,000 students through funding over 1,000 projects on DonorsChoose.

10. ioby connects donors and volunteers to environmental projects in their neighborhoods to inspire new environmental knowledge and action in New York City. The site was founded on the principle that NIMBY (not-in-my-backyard) beliefs can result in environmental hazards being pushed into low-income areas and communities of color. The site boasts of supporting innovative environmental projects like recycling and composting initiatives in New York City neighborhoods and schools, as well as street beautification, urban gardening, and park maintenance projects.

If we missed your favorite crowdsourced funding platform, leave it in the comments.

Photo: Anirudh Koul

133 Responses

  1. [...] This post was mentioned on Twitter by jranck, Vinney Arora. Vinney Arora said: Top ten crowdsourced funding platforms: Whatever project you can dream up, there’s a crowdsourced funding platfo… http://bit.ly/eo6jLo [...]

  2. Hi Rachel, thanks for including FirstGiving in your list of great crowdsourced fundraising platforms. In addition to offering an easy-to-use fundraising platform for individuals and nonprofits, we have just launched a partnership with Global Giving which enables individuals to search for projects supported by Global Giving around the world and raise money for those projects.

    Debra Askanase
    Community Engagement Manager, FirstGiving
    @askdebra

  3. Erin Barnes says:

    Thanks for putting ioby in the roundup! We use crowd sourced funding and crowd accelerated innovation to build stronger, more sustainable urban neighborhoods. We’re only working in our NYC pilot right now, but if anyone from another city is interested in seeing ioby in his or her neighborhood, please reach out to us.

  4. Alex Budak says:

    Great list! StartSomeGood will be launching this month, aimed at empowering people from around the world to become social innovators. SSG connects social entrepreneurs with financial and intellectual capital through leveraging the “power of the crowd.” We couldn’t be more excited about joining these great organizations and making it possible to transform an idea for good into a project for good.

    Alex Budak
    Co-Founder, StartSomeGood.com
    @StartSomeGood

  5. Funchange – funding change, one project at a time! Just launched in February 2011! Fundchange keeps cost low for charities and uses their social networks to engage the next generation of donors. Projects are posted, promoted, voted upon, and funded in weeks, even days! The focus is on do-able asks – projects with direct impact on the community and generally not more than $5000.

    • kattie says:

      Am I reading correctly, Fundchange charges an upfornt fee of over $100us to participate in the site if you want to post a fundraiser?

      • Paul D says:

        Fundchange is specifically for charities and set-up so the fees are up-front so they can be built into the project cost. There is a $50 fee to post projects (membership is $99 and you get 2 free project listings) but the fee to cover credit card processing, and the transfer of funds is only 3.9% so compared to other fundraising options, the cost is quite low. The feedback we got from charities was that this cost certainty, low cost per dollar, and opportunity to tap into a much larger crowd of potential donors was well worth it.
        Just thought i’d clarify.

  6. This is a terrific list! A company that recently launched here in the Washington, DC region is FundsOn! It provides group discounts by area merchants and drives a percentage of proceeds back to non-profits and schools! A great concept and a company and idea to watch as it grows!

    Cynthia de Lorenzi
    CEO – Success in the City
    @successnthecity

  7. What a great list! This is truly helpful for a lot of people who don’t have enough funds to make their dreams come true.

    Here’s another interesting list of crowdfunding sites, http://www.crowdsourcing.org/l/340

  8. [...] for which they seek funding.  Further, one need not only post their project on kickstarter (or any other crowd-sourced funding site) and lie in wait.  To be successful, the creator needs to take the initiative to advance their [...]

  9. [...] so engaging. I’m really interested in their model (though I realize it’s not the only crowdfunding platform out there, it certainly seems to be the most successful). So, without further ado, here is [...]

  10. Jeff says:

    There is a new one that has just launched – http://www.advertactivist.com

    Helps fund socially positive advertising campaigns.

  11. [...] 6, 2011 by rachel Fresh on the crowdsourced funding scene is Simpl, a site that aims to help ideas grow by bringing them into contact with people who [...]

  12. [...] microlending, crowdsourcing is definitely transforming social entrepreneurship, as we’ve reported here with our roundup of crowdsourced funding sites. #bbpBox_68425717976801280 a { text-decoration:none; color:#0084B4 !important; } [...]

  13. Lynn Rasmussen says:

    Check out the new site: GreenFunder.com
    They launched for funding last week.

  14. [...] nonprofits can use online fundraising platforms to engage supporters on a daily basis.  They can allow those supporters to come up with their own [...]

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  16. [...] dejes de echar un vistazo a las principales plataformas de Crowdfunding en EE.UU. y, especialmente, al mejor ejemplo de perfil solidario, Firstgiving y al de carácter [...]

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    Great new startup. Fund activities with your friends for events, church groups, schools!

  18. Crowdtilt says:

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  21. [...] reading an article I provided them. Gonna share this list of 10 crowd source fundraising sites from Dowser. Here are a few: 33needs is a web application that connects investors to small-scale entrepreneurs [...]

  22. [...] reading an article I provided them. Gonna share this list of 10 crowd source fundraising sites from Dowser. Here are a few: 33needs is a web application that connects investors to small-scale entrepreneurs [...]

  23. Joseph D says:

    I’ve been watching My Major Company in the UK. Also known as MMC and like what I’ve seen so far… anyone tried it yet? Shine on all!

  24. Sam says:

    Hey Rachel,

    That’s a great list of great sites!

    We’re the new kids on the block and I just wanted to stop by and say hi :)

    Our site is called Go Get Funding (http://gogetfunding.com) and we welcome all types of projects such as fundraisers for personal plans, projects, events & causes. We charge minimal fees (currently 0% for a limited time – thereafter, 2%) and we offer a ton of features to enable funding flexibility for all.

    Fundraisers are required to offer rewards in exchange for pledges and our site welcomes members worldwide.

    Thanks for covering an ever-growing topic :)

    Sam

  25. [...] courtesy of Kramer O'Neill The rise of crowdfunding has shown the power of individual, small donations to collectively support projects of all sizes — [...]

  26. Kelly McCabe says:

    You forgot to mention…. http://www.startsomegood.com

    Thank you for your article!

    Kelly

  27. JLHanke says:

    Here is an updated list, as well: http://www.get-the-411.com/crowdsource/

  28. [...] Kickstarter, and other sites like it, have the ability to take all types of art—from comics to operas—to the next level at a [...]

  29. Sally Outlaw says:

    Another to add – http://peerbackers.com – funds entrepreneurs and innovators! peerbackers has a section for students raising funding for their endeavors as well. FYI – unfortunately profounder.com (on your list) is now out of business, as seems to be 33needs (they’ve had a static page up for months).

  30. [...] platforms for crowdsourced funding, including DonorsChoose, have also gained some traction. DonorsChoose targets donors with a [...]

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  37. Doug Tobs says:

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  38. [...] Here’s a list of 10 you can check out to get the idea – these groups are popping up all the time – enjoy! Crowd-source funding sites. [...]

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  40. [...] Kickstarter is currently the 800-lb. gorilla, other funding platforms have broken through. This begs the question: Do any of these new sites actually work? The answer is [...]

  41. [...] DonorsChoose allows teachers to solicit funding for specific needs in classrooms and schools. The site is well-organized, with tags for different kinds of projects, and it showcases quotes from donors about how good they feel after giving. Almost 7,000 donors have reached 45,000 students through funding over 1,000 projects on DonorsChoose. spot.us is a funding platform for citizen journalism. Users can submit story tips, and journalists pitch their story ideas for funding. Reporters can also recruit users to help them with a story, which is later posted on the site. Reporters keep 90 percent of the revenue, the rest goes to site editors. If you’re low on cash but want to participate, you can support a story of your choice at no cost through earning points by taking a survey with a spot.us sponsor. The site hosts some excellent stories done by hardworking, independent investigative reporters. # [...]

  42. [...] DonorsChoose allows teachers to solicit funding for specific needs in classrooms and schools. The site is well-organized, with tags for different kinds of  projects, and it showcases quotes from donors about how good they feel  after giving. Almost 7,000 donors have reached 45,000 students through  funding over 1,000 projects on DonorsChoose. spot.us is a funding platform for citizen journalism. Users can submit story  tips, and journalists pitch their story ideas for funding. Reporters can also recruit users to help them with a story, which is later posted on  the site. Reporters keep 90 percent of the revenue, the rest goes to  site editors. If you’re low on cash but want to participate, you can  support a story of your choice at no cost through earning points by  taking a survey with a spot.us sponsor. The site hosts some excellent  stories done by hardworking, independent investigative reporters. # [...]

  43. [...] Top ten crowdsourced funding platforms [...]

  44. Abdul says:

    I am working on a project where each and every one of us can make an ongoing charity by creating an ongoing income out of ongoing expenses. I am looking for people to help me launch this project.
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  45. Jenny says:

    Here’s a pretty thorough list of crowdfunding websites: http://www.squidoo.com/crowdfunding-websites

  46. [...] A bunch of crowdfunding and crowdsourcing sites exist. My favorite, Kickstarter, tends to run to smaller business. A list of Top 10 crowdfunding sites, as listed by Dowser, may be found here. [...]

  47. [...] A bunch of crowdfunding and crowdsourcing sites exist. My favorite, Kickstarter, tends to run to smaller business. A list of Top 10 crowdfunding sites, as listed by Dowser, may be found here. [...]

  48. LendSquare helps small businesses grow by raising money from their communities. Individuals invest in the business through LendSquare, and the small business pays back the lenders, plus interest. We provide a web platform, legal framework, marketing advice, and payment solution to make raising money from a group of individuals simple and transparent.

  49. [...] organizations by engaging the general public in the selection of causes and organizations through online contests. Becky Gitonga, a fellow from Kenya, highlighted experiences working with a nonprofit organization [...]

  50. [...] campaigns have happened through crowdsourcing platforms such as Indiegogo and Kickstarter (among others). Crowdsourcing is the process of outsourcing labour or investment to an undefined public. [...]

    • Eva says:

      I disagree. Kickstarter dismisses some very good campaigns without explanation (they are cocky enough to feel they dont have to explain) and run some absolutely ridiculous campaigns. They frown on humanitarian efforts of any kind, which, in and of itself speaks volumes.

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  52. Mike says:

    Kickstarter is still a great platform. Think of it like mini-venture capital folks that you have to appeal to in order to get their funding. Sure, there’s great projects that get totally ignored, but that doesn’t mean we should ignore the platform. :)

  53. [...] Read Share:TwitterFacebookLinkedInMoreStumbleUponDiggTumblr [...]

  54. Cameron says:

    Kickstarter is a great platform but I discovered this new site that doesn’t reject my project ideas like kickstarter does. Its guardianlender.com. Its a great site and it does funding for creative projects.

    • Veronica says:

      I have tried to find the guardianlender.com website and cannot get to it. I can only find you tube videos on it. Does it really exist

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  56. Jane Hansen says:

    I love Kiva. Kiva.org started the whole crowdfunding movement and is one of the largest (1 million people helped).

  57. John says:

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  58. Jon Fields says:

    I’m looking for a funding site that will allow the development of an e-commerce website.

  59. [...] organizations by engaging the general public in the selection of causes and organizations through online contests. Becky Gitonga, a fellow from Kenya, highlighted experiences working with a nonprofit organization [...]

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  100. Akshay says:

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