Crowdfunding: A strategy where an individual, nonprofit, or business runs a campaign to reach a pre-determined funding goal from a large group of people through an online platform such as Kickstarter, Indiegogo, or others. The campaign is usually to fund a specific project, program or venture, and the funding period tends to be very short, from two weeks to three months. Although most crowdfunding platforms are similar in terms of fee structure, available features, and payment dispersal, the actual cost, rules, and criteria for nonprofits vary greatly from platform to platform.
Peer-to-peer fundraising: A type of crowdfunding where volunteers raise money and solicit donations from their own network of friends, family, and contacts on behalf of a charitable organization. Many walk-a-thons and fundraising challenges operate using peer-to-peer fundraising. Some, though not all, crowdfunding platforms have options for peer-to-peer fundraising.
All or nothing: Some crowdfunding platforms require projects to meet their fundraising goal in order to receive any of their funds. If the goal is not reached, all of the raised funds are returned to the investors. All-or-nothing campaigns create a sense of urgency for investors and donors to reach the fundraising goal, but there is a high risk that the fundraising effort will not yield any funding.
Keep what you earn: Most crowdfunding platforms will allow campaigns to keep all of the funding that they receive, regardless of reaching the fundraising goal. However, some platforms tack on higher fees if the goal is not reached.
Note: Details for the crowdfunding platforms are subject to change. Please check the platform website for the most up to date information.