Before you embark on a GoFundMe campaign, however, it’s important to understand how GoFundMe works, how crowdfunding compares with traditional business funding options, and the steps involved with starting a GoFundMe campaign. We’ll explore its ins and outs, and help you determine if using GoFundMe is a good fit for your business.
What Is GoFundMe?
GoFundMe is a crowdfunding platform that can be used in a multitude of ways, both for personal and business initiatives. To raise money, you’ll first create a fundraising page with photos and video explaining the story behind the need for funds, as well as the goal amount you’re trying to raise. You’ll then share your fundraising page with friends, family, colleagues, potential customers, and others. Individuals can choose to donate to the cause and help you reach your goal. GoFundMe also provides the tools for you to monitor and manage your donations, as well as communicate to each of your donors.
Crowdfunding vs. Traditional Funding for Businesses
When considering your options for business financing, it’s important to weigh the pros and cons of various choices. Here are some of the similarities and differences between crowdfunding and traditional business funding.
Create Your Fundraising Page
Start your business’s campaign by creating a compelling fundraising page and identifying a financial goal. Include high-quality photos and video that tell your story. Pick a catchy title for the fundraiser, and spend time reflecting on the human aspect of what the business’s success means. Maybe the company is a core part of the community and people will want to help out; perhaps it’s fueled by an inspiring story about a veteran who is launching their own startup; or the business supports a cause donors feel strongly about.
Share Your Fundraiser With Others
The next step is to get the word out about your fundraiser. Spread the campaign via email, text, phone calls, and social media. Create a hashtag for the fundraiser, and ask others to share it with their social media followers. Think about what the funds will be used for and whom the business affects, then reach out to these people or groups to let them know about the campaign. Consider getting press coverage for the cause as well.
Collect Donations and Update Donors
In most cases, you can withdraw the donated funds at any time during the campaign without affecting the status of the fundraiser or the progress tracked toward your goal. It’s important to thank donors for their contributions, and keep them updated on how the fundraiser is going and what the money is being used for.
Other Business Crowdfunding Options
There are many different crowdfunding options for small businesses. Depending on your purpose and fundraising goals, you might find that one specific platform meets your needs more than others. Here are a few other popular platforms:
Kickstarter: Specifically designed for businesses raising funds to create a productIndiegogo: Geared toward new innovations in need of funding, in particular tech projectsPatreon: Allows artists and creators to offer subscription services
Is GoFundMe a Good Option for You?
GoFundMe tends to be a platform that supports social causes and fosters a sense of community. If your fundraising goal positively impacts the community, has a meaningful story behind it, or is related to a cause that others may want to rally behind, then GoFundMe could be a good fit for your business. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
