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  • #987905
    MattDell
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    Hi all
    I am involved in a trust that is raising substantial funds for a respite care house for families of kids with a disability (a place for kids to stay overnight so parents get a break)

    We have registered an incorporated group, registered for abn and tax, have authority to fundraise and almost completed our tax deductible charity status (delayed by change in govt)
    tl;dr – we are legit

    Group would like a way for people not in our local area to donate to the cause
    We have people interested from around the world looking to contribute, preferably online via creditcard

    Does anyone have experience of fundraising of this nature via a service like Kickstarter or Gofundme?

    Any recommendations on which is the better service and hints on setting up etc
    Cheapest ongoing fees and transaction charges and best options and website etc – for example GoFundMe charge almost 8% of all donations in fees

    I know there was one gentleman here on FS who also ran a service but I can’t find him via search – please reply if you see this!

    Greatly appreciate your thoughts
    Thanks

    #1164811
    Luth6322
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    Hi Matt

    There are lots of options if you want your charity to fundraise online. The most common that I’m aware of include:

    – everday hero which encourages individuals to support not for profits by raising funds through supporting something they might be undertaking such as a fun run. There are some fees associated with this service http://www.everydayhero.com.au/

    – give now which provides an option for people to donate to a cause. I don’t think there are any fees associated with this option. http://www.givenow.com.au/

    – shout for good, is an app which uses the concept of a small sacrifice such the value of coffee to charities. I’ve only recently become aware of this one and I’ve not looked into if there are any fees associated with joining as a charity. https://shoutforgood.com/

    The other option is to have a payment gateway set up on the charities website. A Paypal button, can be set up which would accept credit cards but I belive a fee is charged when funds are withdrawn. Other payment gateways can be used such as eWay but requires a merchant facility to be set up with your bank, and there is a fee from both the bank and the gateway, so can be a little more expensive then the other options presented earlier.

    Hope this helps.

    Cheers

    Carrie

    #1164812
    Luth6322
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    Hi Matt

    I came across an article this morning regarding crowdfunding and thought it might be relevant to the question you raised.

    http://www.probonoaustralia.com.au/news/2014/05/nfp-makes-aussie-crowdfunding-history

    The website used is called Chuffed and seems to have some great projects being funded.

    http://www.chuffed.org/

    Cheers

    Carrie

    #1164813
    NickKaro
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    Matt

    Whilst against my own interests as I am involved in a crowdfunding platform, I would suggest using a no-fee platform such as Chuffed, assuming you obtain deductible gift recipient status.

    Having some in-depth knowledge of the industry, happy to provide some further advice if requested.

    Separately and of interest to those seeking to fundraise/crowdfund but are outside the charity space, sites such as Chuffed are unlikely to accept the campaign. This is the niche my organisation (OzCrowd.com) is targeting. OzCrowd is less restrictive than many other platforms and allows the community decide what is or isn’t “fundworthy”.

    #1164814
    James
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    Hi Matt,

    This is a great question. I was recently involved in the development of a website that needed to handle donations on a fairly small scale just like this.

    From my provisional research I found a lot of the online donation platforms to be extremely overpriced.

    On the surface they seem like genuinely thoughtful services which are helping charities and NFPs collect funds.

    In actual fact they are making a lot of money in fees, and none I found were operating as not-for-profits. (Note: I wasn’t aware of Chuffed.org at the time, and this seems to have filled this market gap nicely)

    I just felt a bit tricked by those fundraising platforms purporting to support charity, when they are actually skimming off the top.

    Kickstarter even as a platform for business, charges less than most donation platforms.

    If anybody in your organisation has any technical knowledge, creating a simple PayPal payment button could be an affordable option.

    You will need to handle tax receipts separately, however I don’t envisage that to be a huge problem. Automated emails could be set up fairly easily in the PayPal account. You would probably be charged 2.4% + 30c for each transaction, which is fairly similar to that on Chuffed.

    In summary, if you can get a listing on the commission-free fundraising platforms (Chuffed, GiveNow) then that might be the optimal solution, however the PayPal donate button could well offer an easier self-managed solution without the jumping-through-hoops that the platforms (probably) require.

    #1164815
    NickKaro
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    James – the same can be said i.e. “skimming from the top” for a good deal of charities, which take up to 40% of funds donated as administration fees.

    Unfortunately good services require funds to support them, said crowdfunding platforms do more than simply provide a gateway, but also provide added value to campaigns by (at least potentially) exposing them to a greater market than if they had gone it alone.

    The time, effort and money spent creating a campaign “stand-alone” should be compared to the cost of using a crowdfunding platform and, of course, the potential upside of increased exposure.

    James Rayers, post: 193738 wrote:
    Hi Matt,

    This is a great question. I was recently involved in the development of a website that needed to handle donations on a fairly small scale just like this.

    From my provisional research I found a lot of the online donation platforms to be extremely overpriced.

    On the surface they seem like genuinely thoughtful services which are helping charities and NFPs collect funds.

    In actual fact they are making a lot of money in fees, and none I found were operating as not-for-profits. (Note: I wasn’t aware of Chuffed.org at the time, and this seems to have filled this market gap nicely)

    I just felt a bit tricked by those fundraising platforms purporting to support charity, when they are actually skimming off the top.

    Kickstarter even as a platform for business, charges less than most donation platforms.

    If anybody in your organisation has any technical knowledge, creating a simple PayPal payment button could be an affordable option.

    You will need to handle tax receipts separately, however I don’t envisage that to be a huge problem. Automated emails could be set up fairly easily in the PayPal account. You would probably be charged 2.4% + 30c for each transaction, which is fairly similar to that on Chuffed.

    In summary, if you can get a listing on the commission-free fundraising platforms (Chuffed, GiveNow) then that might be the optimal solution, however the PayPal donate button could well offer an easier self-managed solution without the jumping-through-hoops that the platforms (probably) require.

    #1164816
    James
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    100% with you Nick. I definitely understand that these platforms require their own funding to employ developers and grow their user base and I’m not against paying a sensible commission for a functional service.

    I suppose my issue at this stage is that crowd-funding platforms are in their infancy, and in the ‘charity’ space they aren’t subject to the same transparency as charitable and NFP organisations.

    I certainly wouldn’t expect a crowd-funding platform to operate at a loss, but there is an unusual ethical dilemma if you were to have a business making significant profit from the charitable donations of others.

    NickKaro, post: 193770 wrote:
    James – the same can be said i.e. “skimming from the top” for a good deal of charities, which take up to 40% of funds donated as administration fees.

    Unfortunately good services require funds to support them, said crowdfunding platforms do more than simply provide a gateway, but also provide added value to campaigns by (at least potentially) exposing them to a greater market than if they had gone it alone.

    The time, effort and money spent creating a campaign “stand-alone” should be compared to the cost of using a crowdfunding platform and, of course, the potential upside of increased exposure.

    #1164817
    Dardee
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    Hi Matt.

    Over the last 2 years I have been involved in a charity that has set up multiple avenues for donations to be received. There are solutions like Artez which are comprehensive or be as simple as a Paypal button on a page as has been mentioned.

    There are many factors that need to be considered such as:

    • one off credit card payments
    • recurring credit card payments (ie monthly donors)
    • how much control do you want
    • how much can you do yourself
    • what is required in the backend
    • how will all this tie into your accounting solution

    Systems such as Artez are great, but the backend is quite poor and getting good information out of it is time consuming and cumbersome.

    From my experience getting the donation is one thing, but how it flows through into accounting and hence receipting is another. The more automated you make it the better. And the less errors you will get.

    Happy to discuss this further if you’d like.

    #1164818
    ClickyEmail
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    I would like to add my vote to Chuffed – they’re great. Friendly and here in Sydney too.

    If you’re looking for a website to support it – the guys at Brown Box (brownbox.net.au) are all about that kind of stuff too.

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