Crowdfunding: How fundraisers choose the right donation platform

With the help of 37 online platforms, fundraisers in Switzerland can raise money for charitable and commercial projects. Fundraiso.ch clears up the platform jungle and tells you what you need to consider when making your choice.

Annika Berger 's mini-restaurant on wheels project has already received over 28,000 francs in donations on Crowdify.ch. But how did the 44-year-old truck driver from Pfäffikon ZH choose her donation platform? Annika Berger says: "I still had the old name of Crowdify - 100 days - in my head from the advertising. I then simply decided on Crowdify". Annika Berger refrained from making a comparison with other platforms.

Platform choice not left to chance

Even if the amateur fundraiser is successful with her fundraising project on Crowdify, every fundraiser should put a potential platform through its paces beforehand (see box below). But which platforms are actually available in Switzerland? According to the Crowdfunding Monitor Switzerland 2019 published by Lucerne University of Applied Sciences and Arts (HSL), there were a total of 37 crowdfunding platforms based in Switzerland in 2018. The largest donation platforms include Crowdify.ch, Cause direct, fundeego, funders, GivenGain, I believe in you, I care for you, Indiegogo, Kickstarter, Lokalhelden.ch, Progettiamo, ProjektStarter and Wemakeit. But which platform is suitable for your project? Only a serious platform comparison can answer this question. The fact is: every platform has its advantages and disadvantages - and often also obstructive restrictions in terms of content, time, financial, technical and legal restrictions.

Differences in fees and terms

An example: With Crowdify, a user pays 9 or 11 percent processing fees from the donations received for a successful campaign. On the Raiffeisen platform Lokalhelden.ch, there are no such high costs. Another sticking point is often the duration: a Crowdify campaign, for example, is limited to 100 days. This can be an advantage to create a certain amount of time pressure for potential donors. For multi-year projects, however, this "short" time span is at best a disadvantage.

Check reach and user numbers

It can also be worth taking a look at foreign donation platforms: On the US platform Gofundme.com, for example, more than 50 million people have already been active and have donated over 5 billion US dollars to campaigns. This platform is available in German and offers a wide reach. A fundraising campaign can also be set up here without a time limit. There are therefore good reasons to check platforms in detail with your own individual list of requirements before making a final selection.

Bernhard Bircher-Suits, FundCom AG

How to choose the "right" crowdfunding platform

• Requirements catalog: Think about what the fundraising platform you are using must be able to do for your project to be successful. Create a detailed list of requirements.
• Platform focus: Depending on the project, it is important to find a platform that fits the topic. Some crowdfunding platforms are more suitable for non-profit organizations, others for companies or private individuals. Some focus on sport or culture, others on charitable projects.
• Where is my crowd? It is important that you know as much as possible about your target group or potential supporters. Each platform appeals to a certain type of person. Check whether your potential supporters are on your favorite platforms and also make effective donations there.
• Multimedia and social media channels: Check which media (images, graphics, videos, etc.) and which social media channels can be used for a project description.
• Operation and support: Clarify whether the platform offers help texts and instructions and is easy and quick to use.
• Amount of donations raised: If possible, clarify the amount of donations raised in your topic area on the platform.
• Terms of use: Check the contract or terms of use of the platform in detail. Anyone who violates the terms of use can be excluded from the platform.
• Support: Does the platform offer technical support and is the support free of charge or subject to payment? Which channels (telephone, e-mail, etc.) can be used to contact the platform?
• Data protection and addresses: Check in detail what happens to the addresses you use on the platform. Does the platform comply with the data protection regulations applicable in Switzerland and the EU?
• Marketing support: Check which marketing tools the platform offers free of charge or for a fee.
• Reach: How many donors can you theoretically reach with your project on the platform?
• Languages: Does the platform cover the languages you need?
• Payment options: Check whether all the payment options that are important to you are available on the platform.
• Donation certificate: Does the platform offer support for the creation of donation receipts?
• Campaign duration: Does the platform have time limits for project funding?
• Fees: According to the Crowdfunding Monitor Switzerland 2019, fees in Switzerland are between zero and 12 percent of the amount raised. Lokalhelden.ch and Progettiamo do not charge any fees. Transaction fees for payments are usually added.