Funding Methods On Fundraising Websites

Different fundraising websites offer different types of fundraising methods and you need to choose the one that is right for your specific needs.

Here’s a run down on the most popular funding methods:

• Keep-it-all – paid upon expiry

As the name suggests, keep-it-all means you keep all funds that you raise. Money is paid to you in one go once the fundraiser ends. This is often the process on fundraisers that have a time limit.

Naturally, the benefit of this is that you keep all the funds and that you get a lump sum payout. This may help prevent spending the money if you had smaller payouts over time.

• Keep-it-all – instant

Fundraising sites that have no time limit will often send you the money as it comes through. The benefit of this is that the money is immediately available.

• All-or-nothing

This payment method means you have to meet your fundraising target or else money is returned to backers. This is a useful way to motivate people to pledge and is handy when you can’t complete your project unless you raise all the required funds. The downside is all your hard work can go to waste if you miss your funding target.

• Mixture of the above but with variable fees

Some sites use a keep-it-all or all-or-nothing funding method and base their fees depending on how much you raise. It’s normally the case that if you meet or exceed your funding target, you’ll be charged the standard rate. However, if you don’t meet your funding target you’ll often be charged a much higher sum.

Now that you know how the funding methods work, check out the best fundraising sites.