What are the best crowdfunding sites for nonprofits? What are the best crowdfunding sites for small business? We purposely link these two categories that may otherwise seem quite different because in many ways the reasons why companies in both of these categories need funding are similar: A lack of a current profit margin, no natural investor base, and a need for growth or expansion despite both of those circumstances. This does not mean that the same websites are necessarily always the best ones for each of these types of business, but in many cases they are, and therefore we cover both topics here.
Best Crowdfunding Sites for Nonprofits
Here we cover the best crowdfunding websites for nonprofits. Our list below may not include all of the good sites so we start with a section that may help you make a choice whether among the websites we list, or others that you find or are recommended in other ways.
Choosing the best crowdfunding sites for nonprofits
The best crowdfunding sites for nonprofits would naturally have three characteristics:
- There would be little investment needed up front in order to make the pitch. Nonprofits cannot usually afford a huge up front investment and are much better off paying after they are successful.
- They would attract investors who to some degree want to invest in a mission. Investors who are looking for the maximum return on their investment might look elsewhere, perhaps at start-ups or for profit expansion.
- The best crowdfunding sites for nonprofits may be able to cater their customer service and other information to the nonprofit world – giving information about tax advantages and other advice that specifically covers this niche.
But what exactly are the best crowdfunding sites for nonprofits right now, and which one might be a fit for your business or your investment? Below are three possibilities.
Best Crowdfunding Sites for Nonprofits List
So what are the best crowdfunding websites for nonprofits. Here are five of our choices. This is not necessarily a comprehensive listing; There are many other websites out there that could be an excellent fit for your project or purpose. For example, there are some newer sites that we have not included but which may become strong as they grow, and some niche sites that we have not included because they only serve a very specific kind of nonprofit. Note: The links below are not affiliate links. We have no stake in what you choose.
- Razoo: This may be the biggest of the crowdfunding sites for nonprofits, or at least the biggest platform that does not do other things as well. Razoo likes to consider itself a “movement” as they encourage investors to generously give to nonprofits with strong missions and important causes, Razoo claims to have helped over 14,000 nonprofits
- StartSomeGood: Of the websites on our top crowdfunding sites for nonprofits StartSomeGood may be the newest. This site has carved out a unique place as they cover “social innovations,” basically new ideas and products that lead to good. Social entrepreneurship is up-and-coming and this site is looking to take the lead as far as a platform.
- Causes: This is a great crowdfunding website for nonprofits because investors can choose among different causes before choosing what to invest in. In other words, an investor can first decide that human rights is her or his cause, and then research that particular category further to see where the investment should go.
- Crowdrise: This platform may be the one with the most potential of these six sites on our top crowdfunding sites for nonprofits listing. The site is around eight years-old as of this writing and serves nonprofits by helping them recruit both philanthropists and volunteers.
- Indiegogo: We wanted to include at least one example of a more general crowdsourcing website that has an excellent section dedicated to nonprofits and charity. Indiegogo has done a great job on a worldwide scale in the nonprofit fundraising niche.
Once again, these are just five solid examples of the top crowdfunding sites for nonprofits. There are others as well and we invite you to share your own experience in the comments section. As other websites become more popular and effective we may add them here.
Best Crowdfunding Sites for Small Business
While some of the best crowdfunding websites for nonprofits may naturally also be the best crowdfunding sites for small business, there are some differences which we cover here.
Choosing the best crowdfunding sites for small business
As we mentioned, the best crowdfunding sites for small business might share a lot in common, and even be the same, as the best crowdfunding websites for nonprofits. There may be subtle differences however, including the following:
- There would also be little investment needed up front, but the amount may be more than is expected of nonprofits – investors need to know that their money is not the only thing keeping the small business afloat.
- The best crowdfunding websites for small business would attract investors who are attracted to the product and the potential of the company. Investors will want to vet the company from a variety of angles, including getting to know the leaders and judging their potential.
- The best crowdfunding sites for small business will also cater their customer service and other information to information about tax advantages and such, but of course it would be in relation to the for profit world.
So what are some examples of the best crowdfunding websites for small business right now, and which one might be a fit for your small business or your investment? Below are three possibilities.
Best Crowdfunding Sites for Small Business List
If you are looking to take on debt to help with a new product launch or business expansion, one of the best crowdfunding sites for small business is Endurance Lending Network.
- Funding Circle works to connect small businesses with up to $500,000 of debt capital. There are many ways that this debt can be furnished, such as accredited investors who are excited about the potential of a product or expansion, fund managers, family trusts, etc. Like many peer-to-peer lending platforms investors can invest in a variety of opportunities that are aggregated.
- For equity small business investing, which is better known and has the highest risk/reward profile, MicroVentures is a great choice among the crowdfunding websites for nonprofits. The great thing for investors is that MIcroventures carefully vets the proposals before they are posted on their platform. Their due diligence saves the investor from having to weed through a multitude of sites. Relatively small amounts of capital are aggregated until the small business has what it needs to pursue its goal.
- Angel List may be the most popular and busiest of the crowdfunding websites for nonprofits. If your small business has been successful enough to have already raised $100,000 in seed money, Angel List may provide a great platform to raise even more. With a strong and well-vetted group of investors, AngelList is a great choice for small businesses that have already found some funding success.
- CircleUp is an example of a crowdfunding site for small business that focuses on a niche, in this case consumer product and retail companies. If you want a portal that allows friends and family to invest in your product or store, this may be the best choice, and of course it is also good because its investors are already interested in this niche.
Best Crowdfunding Sites for Nonprofits and Small Business Summary:
Above we covered how to make the choice whether you are an investor or looking for an investment as far as the best crowdfunding websites for nonprofits and the best crowdfunding websites for small business. As you can see these two categories lead in the same direction in many ways, yet there are subtle but important differences.
We would love to hear from readers who have had experience with any websites in these niches. Which were the best crowdfunding sites for nonprofits, and which were the best crowdfunding sites for small business in your experience?