Crowdfunding for Non-Profits: Everything You Need To Know

non-profits crowdfunding

If you’re a non-profit, there’s always the incentive to keep costs down so that more of your money goes to your cause. But there’s only so many times you can spend searching discount codes websites looking for ‘healthspan 50 discount code‘ to keep costs down. Eventually, you need to raise money.

A non-profit is defined as an organization that exists to take donations, providing a service for their constituents, or people who use that nonprofit. You have to file to start a nonprofit at a state and federal level, while at the same time defining and implementing policies and procedures that your nonprofit needs to design in order to make success happen. Nonprofits hold a tax-exempt status in the eyes of the IRS. It is necessary to consult a local attorney or an accountant who understands what a nonprofit does in your state. You need to know about how charitable organizations are formed within your state’s legal structure.

Each state has a specific method of incubating your nonprofit idea in a way that is practical for fundraising and less expensive. There are at least five steps that require making a decision for your nonprofit idea. The very first step in starting a nonprofit using crowdfunding is to research what your community needs in a nonprofit. There are 1 million nonprofits in operation in the United States that are considered charitable organizations that struggle to attract funding.

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Nonprofits are bound by specific rules that they cannot make a profit off of their services, which is why it is called a not-for-profit organization. There are potential risks with different ways of making money if you do not know the rules surrounding how to raise money. Indiegogo and GoFundMe help raise money by allowing a non-profit to broaden their support system since an organization can operate in one city and receive their funds from another city in another state precisely because of their fundraising objective.

Thirty-nine states and the District of Columbia have various laws governing charitable solicitation, which is technical jargon for a gift a nonprofit receives that is going to be used by that nonprofit for charitable purposes, such as getting the homeless toiletries. Some states do require a nonprofit to register their intent to get charitable solicitations in that state. As an example, California does not require registration until the funds or property are received, while thereby the nonprofit must register within 30 days of receiving charitable assets that will be used to further the goals of the nonprofit.

Failure to register a nonprofit could lead to civil and criminal punishments that vary across states, with potential penalties including state fines. The nonprofit has to then return all solicited funds. Crowdfunding platforms such as Donately offer a solution for a nonprofit to launch specifically tailored-to-their-needs campaigns. Donately offers a stress-free way to start a campaign. Donately has created a simple way to launch a crowdfunding campaign. Donately offers fundraising tools to accept gifts online, letting your team process donations from any location you see fit. Donately takes a 3% fee from the first $100,000 and they also have a credit card processing fee of 2.9% + $0.30 for each donation made. The ACH processing fee is 0.8% with a cap of $5.00. ACH refers to an electronic payment from an originating institution.

The rules for using online fundraising platforms for non-profits are determined by the solicitation requirements present in each state. The Charleston Principles mean that a nonprofit has to be registered for online charitable solicitations while the nonprofit solicits donations through what is called an “interactive website” such as GoFundMe. Nonprofits have to follow up with their donors through email or a paper letter that verifies the tax-deductible donation because of targeting a resident of that state, which would make the registration requirement fall into place.

GoFundMe For NonProfits

GoFundMe for nonprofits gives nonprofits the option to raise money for specific campaigns, while also given that they sell tickets and also collect registration for events. Nonprofits want fundraising tools that match the branding they have put together, Paypal also has a donate button option. A nonprofit called March for Our Lives raised $3,531, 110 on April 12th, 2018, after the Stoneman Douglas High School Shooting by Cameron Kasky for a march, the funds going to the victims of the shooting. Nonprofits are governed by many rules that a founder of a nonprofit has to learn in order to make sure that the nonprofit is being adequately funded. However, GoFundMe may take a large chunk of fundraising profits from organizations it is raising money for. GoFundMe is effective as a fundraising tool however because it defines the very idea of fundraising being able to raise more money online than through other, snail mail derived methods of fundraising. Raising the money necessary for a nonprofit has become easier these days with the Internet but nonprofits need to be aware of the rules in each state that governs having a nonprofit status acknowledged by the State the nonprofit is started in. Fundraising for a nonprofit is governed by many rules as it is a tax deduction.

How To Set Up a Go Fund Me Page: Our Ultimate Guide

gofundme fees

Our Step-By-Step Guide For Setting up a Go Fund Me Page.

Many people have put their inventive ideas on hold due to the lack of financial resources. Thanks to crowdfunding platforms such as GoFundMe, your creativity doesn’t have to be placed on hold. Crowdfunding allows many people over the net to fund your projects whether big or small. You can think of it more like sourcing a crowd of people in request for a financial donation to support your cause but via the internet.

Unlike many crowdfunding platforms, GoFundMe does not necessarily reward its donors. Some platforms offer a reward in exchange for generous donations, like free gifts or coupons for benefactors. GoFundMe does not. Users of the platform can choose to offer a reward to donators, however, that is not common. Generous people that often give to GoFundMe campaigns typically do so based on wanting to support a great cause. Why start a GoFundMe campaign anyway?

Reasons To Start A GoFundMe Campaign

GoFundMe isn’t just for those who have the entrepreneurial spirit. In fact, you don’t have to be business-minded at all to start a campaign. You don’t even have to want or need donations for yourself personally. You can start a campaign to help support a need of a friend. Below is a list of reasons people have started GoFundMe campaigns. The list doesn’t stop here.


  • Transportation For The Employed – Years ago someone started a GoFundMe for an older gentleman that got up at five in the morning to ride his bike to work. He had been following his routine for many years before someone started him a GoFundMe.
  • Raise Money To Feed The Homeless
  • Help With Surgery Expense
  • Help A City Or Town Recover From A Natural Disaster
  • Memorial Funding
  • Start A Local Business

GoFundMe Tutorial

So you’ve heard enough about GoFundMe and now your ready to sign up and start your first campaign. Follow the simple tutorial outlined here. When you get to the official website you should see a green button that says Start a GoFundMe.

Account Sign Up:

how to start a GoFundMe fundraiser

The First Steps To Setting Up Your GoFundMe Page:

  • Click Start a GoFundMe button
  • Sign up using Facebook account or Email address
  • Enter Full Name, Email Twice and a Password
  • Enter Campaign Title, Fundraising For Who?, Your Zip Code, Campaign Category and Fundraising Amount
  • Select Individual if you plan to promote alone
  • Add Cover Photo and YouTube Video
  • On the next page you will explain why your fundraising
  • Click Start Sharing green button to get your GoFundMe link
  • Click Next
  • Click Manage Fundraiser – You will be taken to your campaign. From there you can click view to see what donors would view on your campaign.

Withdrawal Process

Withdrawing to your bank account is simple. After creating your campaign you need to click withdraw. You will see the withdraw link in the Manage GoFundMe section. Click the green button that says Set Up Withdrawals. You will receive a verification link to your email. After verifying through the email you will need to verify through text also. You want to set up Withdrawals within the first thirty days to avoid confusion.

You will need to enter the last four digits of your social security number into GoFundMe for verification. You also need to input your bank name, account number and routing number to receive your funds. You can sign up for a free account with American Express Blue Bird or MyVanilla to receive direct deposit if you don’t already have a bank account. Both card types are reloadable in stores that participate. Withdrawals from your campaign normally take between 2 to 5 days to complete.


It’s important for you to check for GoFundMe updates. GoFundMe rarely but does update their terms and fees. To start a campaign is free. The fees would include a 2.9% transaction fee and a 0.30% per donation fee.

Fundraising Approach

Starting a campaign does not guarantee you donations. You can start sharing your link on social media sites like Facebook, YouTube and Instagram. You can also promote your campaign on your blog or pay to promote it on a blog source that receives a lot of daily traffic. Always encourage people to share your link whether they plan to donate or not.

Start Your First Campaign

I know by now you should see the value in starting a GoFundMe campaign. It’s a powerful way to bring thousands of people together to support a common cause. Always play fair when signing up to start your campaign. Never seek to take advantage of good people that work for their hard-earned money. If you think someone can benefit from this information be sure to share this post on your social media accounts.