|
May 24, 2018, 04:52:49 PM |
|
The existing crowdfunding model takes large percentages of donations in order to process FIAT payments and stay afloat. For example, GoFundMe takes 5% of what every campaign raises in addition to passing along a credit card processing fee to donors. This is the same case with Kickstarter. Indiegogo charges up to 9% on the funds raised. There is also processing fees between 3% to 5%, for currency exchange fees and wire fees. Razoo charges 7.9% of funds raised including a processing fees. Others such as Crowdrise, Fundly and RocketHub charge between 5%-8%, also in addition to processing fees. In addition to high fees, another problem is that very few crowdfunding campaigns are successful in raising the required funds. Donations go to the crowdfunding platform, not the actual campaign. Campaigns only receive funding after meeting strict fundraising goals and conditions.
|