Kickstarter VS GoFundMe

If you’re familiar with crowdfunding, you probably know that Kickstarter is generally known for crowdfunding campaigns that support people who make things such as tech gizmos and fantasy board games, while GoFundMe tends to be more for personal causes. While this is essentially accurate, it’s worth drawing some finer distinctions between the two.

In this GoFundMe versus Kickstarter post, we’re going to compare and contrast these two platforms in greater detail so you can find the best option for your situation.

Kickstarter VS GoFundMe: At A Glance Comparison

Where Kickstarter Wins

Where Kickstarter Falls Short

Where GoFundMe Wins

Where GoFundMe Falls Short

Kickstarter VS GoFundMe: Pricing Comparison

Kickstarter charges a 5% platform fee. This is pretty standard when compared to other crowdfunding sites. It also charges processing fees of 3% + $0.20 per pledge OR 5% + $0.05 per pledge under $10.

On the other hand, GoFundMe does not charge any platform fees. You will have to pay processing fees of 2.9% + $0.30 per donation.

Kickstarter VS GoFundMe: Terms Comparison

The application process, campaign requirements, and terms of Kickstarter and GoFundMe. Here’s a breakdown of what to expect from each platform.

Kickstarter Terms

The application process is pretty easy with Kickstarter. Simply fill in information about yourself and your campaign and submit. Most (though not all) campaigns are flagged for further review based on the application details. Ultimately, Kickstarter estimates that about 80% of the campaign submissions it receives are approved.

Kickstarter’s rules for its campaigns are as follows:

• Projects must create something to share with others
• Projects and backer statistics must be honest and clearly presented
• Projects can’t fundraise for charity
• Projects can’t offer equity
• Projects can’t involve prohibited items

All projects must be cleared by Kickstarter before they can go live. This process can take up to three days.

Kickstarter campaigns are all-or-nothing when it comes to collecting the funds you raise from donors. What does this mean?

It means that with Kickstarter, your funding campaign can last anywhere from one to 60 days (Kickstarter recommends setting a funding period of 30 days, as data indicates that shorter campaigns are more likely to reach their target). If you don’t reach your fundraising goal by the end of your campaign, you won’t get any of the money raised. It will instead go back to the donors who sent it.

Since only about 39% of Kickstarter projects reach their funding goal, roughly 61% of Kickstarter campaigns result in the project taking in $0. While this sounds bad, Kickstarter makes a case for all-or-nothing funding with three points:

1. It takes the pressure off of creators who fall short of their fundraising goal — otherwise, backers might expect campaigners to deliver results without the funds necessary to do so.
2. Motivation. As Kickstarter puts it, “Adding a sense of urgency motivates your community to spread the word and rally behind your project.”
3. Pointing to the data that shows that the projects that reach 60% of their funding goal end up meeting their funding goals 98% of the time, Kickstarter simply states that “it works.”

Do these arguments truly justify Kickstarter’s all-or-nothing funding policy? I’ll leave you to be the judge of that.

GoFundMe Terms

Like Kickstarter, GoFundMe has an easy application process. Unlike Kickstarter, however, GoFundMe lacks a similar set of concrete rules for what constitutes a proper campaign on its site and likewise does not require campaigners to get pre-clearance before launching.

Although campaigns are not prescreened, GoFundMe forbids campaigns that involve illegal activities, weapons, porn, hate speech, fraud, drugs, and the like.

Which Is Best For My Business?

While both platforms can help you achieve your fundraising goals, one option may be better suited for your business.

Choose Kickstarter If…

• You want to raise money for a business/entrepreneurial venture using the crowdfunding platform that’s most optimized for such ventures
• Your project involves producing something that can be offered to your backers in exchange for their support
• Your project is creative in nature (art, tech, film, board games, etc.)

Choose GoFundMe If…

• You want to raise money for a personal cause/emergency/tragedy, whether it be yours or that of a friend or family member
• You want to raise money for a business/entrepreneurial venture but want to avoid paying a 5% platform fee
• You want to raise money for a business/entrepreneurial venture but want to keep whatever you raise, regardless of whether you reach your funding goal

As the two leading crowdfunding companies, Kickstarter and GoFundMe, target different audiences, it wouldn’t make much sense to name a winner and a loser in this comparison.

However, by highlighting the similarities and differences between the two outfits, we hope to give you a better sense of which platform you should use, depending on your funding needs.