> Skip to content
FEATURED:
  • Philanthropy 50
  • Nonprofits and the Trump Agenda
  • Impact Stories Hub
Sign In
  • Latest
  • Commons
  • Advice
  • Opinion
  • Webinars
  • Online Events
  • Data
  • Grants
  • Magazine
  • Store
    • Featured Products
    • Data
    • Reports
    • Collections
    • Back Issues
    • Webinars
    • Featured Products
    • Data
    • Reports
    • Collections
    • Back Issues
    • Webinars
  • Jobs
    • Find a Job
    • Post a Job
    • Career Advice
    • Find a Job
    • Post a Job
    • Career Advice
Sign In
  • Latest
  • Commons
  • Advice
  • Opinion
  • Webinars
  • Online Events
  • Data
  • Grants
  • Magazine
  • Store
    • Featured Products
    • Data
    • Reports
    • Collections
    • Back Issues
    • Webinars
    • Featured Products
    • Data
    • Reports
    • Collections
    • Back Issues
    • Webinars
  • Jobs
    • Find a Job
    • Post a Job
    • Career Advice
    • Find a Job
    • Post a Job
    • Career Advice
  • Latest
  • Commons
  • Advice
  • Opinion
  • Webinars
  • Online Events
  • Data
  • Grants
  • Magazine
  • Store
    • Featured Products
    • Data
    • Reports
    • Collections
    • Back Issues
    • Webinars
    • Featured Products
    • Data
    • Reports
    • Collections
    • Back Issues
    • Webinars
  • Jobs
    • Find a Job
    • Post a Job
    • Career Advice
    • Find a Job
    • Post a Job
    • Career Advice
Sign In
ADVERTISEMENT
Online Fundraising
  • Twitter
  • LinkedIn
  • Show more sharing options
Share
  • Twitter
  • LinkedIn
  • Email
  • Facebook
  • Copy Link URLCopied!
  • Print

Crowdfunding Continues to Gain Traction as a Fundraising Tool

By  Emily Haynes
April 9, 2021
Novi Sad, Serbia - November 9, 2015: Websites (homepages) of five leading crowdfunding platforms in the world - Kickstarter, IndieGoGo, RocketHub, Crowdfunder and GoFundMe on a computer screen.
Getty Images

Roughly 32 percent of people say they donate to a crowdfunding effort each year, according to a September 2020 survey of 1,535 adults by the Lilly Family School of Philanthropy at Indiana University. People were most likely to give to appeals made by a family member or close friend: More than half of respondents who had supported a crowdfunding campaign said they had given to one such effort. Campaigns organized by charities were the second most popular, with more than 47 percent of crowdfunding donors saying they had donated to a nonprofit on a crowdfunding platform.

We're sorry. Something went wrong.

We are unable to fully display the content of this page.

The most likely cause of this is a content blocker on your computer or network.

Please allow access to our site, and then refresh this page. You may then be asked to log in, create an account if you don't already have one, or subscribe.

If you continue to experience issues, please contact us at 571-540-8070 or cophelp@philanthropy.com

Roughly 32 percent of people say they donate to a crowdfunding effort each year, according to a September 2020 survey of 1,535 adults by the Lilly Family School of Philanthropy at Indiana University. People were most likely to give to appeals made by a family member or close friend: More than half of respondents who had supported a crowdfunding campaign said they had given to one such effort. Campaigns organized by charities were the second most popular, with more than 47 percent of crowdfunding donors saying they had donated to a nonprofit on a crowdfunding platform.

That finding should pique nonprofit fundraisers’ interest in crowdfunding campaigns, said Una Osili, associate dean for research and international programs at the Lilly School. “Charitable organizations can start to think about how they can build crowdfunding into their strategy,” she said in a webinar presentation on the report.

Participation in crowdfunding campaigns is still relatively low. About 91 percent of people surveyed were familiar with the concept, but just under 32 percent said they had given to such an effort. Still, that’s an increase from four years ago. In 2016, just 22 percent of Americans made contributions to a crowdfunding campaign, according to a Pew Research Center report.

While these campaigns aren’t booming, they’re clearly growing, Osili said. “Getting in now and brushing up your own ability to use this new tool is going to be critical for many nonprofit organizations,” she said.

ADVERTISEMENT

What’s more, people who had already given to crowdfunding campaigns grew more comfortable giving that way during the pandemic, when individuals’ and nonprofits’ financial needs skyrocketed and many took to mass giving platforms to appeal for contributions toward rent, medical bills, funeral costs, and other expenses. Among donors who routinely gave to crowdfunding efforts before the pandemic, more than 47 percent said they had contributed to a stranger’s fundraising appeal during the previous year. That’s nearly 10 percent higher than the share of all donors who said they had supported a stranger’s crowdfunding campaign.

Nine out of 10 donors surveyed said they’d continue to give the same amount or more to crowdfunding efforts over the next three years.

Moving fundraising to social media and crowdfunding platforms isn’t replacing giving by check or through an organization’s website, Osili said. Rather, these campaigns are “growing the pie.”

Younger and More Diverse

The survey also captured some demographic trends that set crowdfunding donors apart from those who give through other means. Crowdfunding donors are slightly more racially and ethnically diverse than donors who give by check or through a charity’s website. They’re also more likely to be younger, single, and less religious, according to the survey.

ADVERTISEMENT

What’s more, because crowdfunding donors give most often to people they know, those who prefer this giving method can be ambassadors who introduce charities to new donors among their family and friends. That potential hasn’t yet been realized, however. More than 62 percent of donors to crowdfunding efforts say they never use social media to ask their friends or family to join them in giving to a campaign.

Charities could broaden their reach by asking supporters to tap their networks for gifts, says Lloyd Hitoshi Mayer, a professor of nonprofit law at the University of Notre Dame Law School. For now, crowdfunding campaigns tend to post the biggest numbers when they respond to crises, Mayer said.

That was the case this summer when a GoFundMe memorial fund for George Floyd received almost 500,000 individual donations — the most people ever to support one campaign on the platform. That fundraising effort was one of many to see donations skyrocket as protests for racial justice surged across the country. The Lilly School survey found that roughly 20 percent of donors to crowdfunding campaigns give to social-justice causes. Nonprofits with social-justice missions could use crowdfunding to connect with new donors, Osili said.

While crowdfunding is still maturing — and potential donors still have questions about security and trust — Mayer says the fundraising tactic has promise: “You have to embrace these new tools because otherwise you’re foreclosing an avenue for potential supporters.”

We welcome your thoughts and questions about this article. Please email the editors or submit a letter for publication.
Fundraising from IndividualsMass FundraisingTechnologyData & ResearchDigital Fundraising
Emily Haynes
Emily Haynes is senior editor of nonprofit intelligence at the Chronicle of Philanthropy, where she covers nonprofit fundraising.
ADVERTISEMENT
ADVERTISEMENT
SPONSORED, GEORGE MASON UNIVERSITY
  • Explore
    • Latest Articles
    • Get Newsletters
    • Advice
    • Webinars
    • Data & Research
    • Podcasts
    • Magazine
    • Chronicle Store
    • Find a Job
    • Impact Stories
    Explore
    • Latest Articles
    • Get Newsletters
    • Advice
    • Webinars
    • Data & Research
    • Podcasts
    • Magazine
    • Chronicle Store
    • Find a Job
    • Impact Stories
  • The Chronicle
    • About Us
    • Our Mission and Values
    • Work at the Chronicle
    • User Agreement
    • Privacy Policy
    • California Privacy Policy
    • Gift-Acceptance Policy
    • Gifts and Grants Received
    • Site Map
    • DEI Commitment Statement
    • Chronicle Fellowships
    • Pressroom
    The Chronicle
    • About Us
    • Our Mission and Values
    • Work at the Chronicle
    • User Agreement
    • Privacy Policy
    • California Privacy Policy
    • Gift-Acceptance Policy
    • Gifts and Grants Received
    • Site Map
    • DEI Commitment Statement
    • Chronicle Fellowships
    • Pressroom
  • Customer Assistance
    • Contact Us
    • Advertise With Us
    • Post a Job
    • Reprints & Permissions
    • Do Not Sell My Personal Information
    • Advertising Terms and Conditions
    Customer Assistance
    • Contact Us
    • Advertise With Us
    • Post a Job
    • Reprints & Permissions
    • Do Not Sell My Personal Information
    • Advertising Terms and Conditions
  • Subscribe
    • Individual Subscriptions
    • Site License Subscriptions
    • Subscription & Account FAQ
    • Manage Newsletters
    • Manage Your Account
    Subscribe
    • Individual Subscriptions
    • Site License Subscriptions
    • Subscription & Account FAQ
    • Manage Newsletters
    • Manage Your Account
1255 23rd Street, N.W. Washington, D.C. 20037
© 2025 The Chronicle of Philanthropy
  • twitter
  • instagram
  • youtube
  • facebook
  • linkedin