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Crowdfunding for nonprofits is a tried and true fundraising strategy, but can it work without much visibility or established reach? The answer is yes, and we’re here to help you not only make crowdfunding work, but truly see the benefits as a smaller nonprofit.
When your team is lean, time is scarce, budget is scarce, and processes need to be kept simple, finding the best way to raise money fast can feel complex. Crowdfunding doesn’t require celebrity ambassadors or a huge social media following to drive meaningful donations, especially when you have a simple, 100% free tool that’s built for nonprofits like Zeffy.
In this guide, we’ll show you how to launch a strong crowdfunding campaign, whether you’ve run a few in the past or are jumping in for the first time. You’ll learn how to choose the right crowdfunding platform, build momentum with your audience, and tell your story in a way that moves people to act.
To help you see how small starts can result in big wins, you’ll dive into real-world crowdfunding examples from organizations like the University of Montreal and YesSheCan. We’ll also cover use cases, common mistakes, top tools, and a step-by-step playbook to help you launch confidently.
What is Crowdfunding and Why Should Nonprofits Consider it to Raise Money?
Crowdfunding campaigns enable organizations to raise small amounts of money from numerous individuals online to enhance their fundraising strategy. Nonprofits can set a fundraising goal, share a specific cause they’re funding, and use that sense of urgency and community to connect with donors ready to give.
You may think this only works when you have a large donor base or loyal supporters, but it can also be a great donor acquisition tool. Think of your crowdfunding campaign as a way to introduce your story and the vital work you do to a new community you may not have reached otherwise.
When you can offer an incentive for giving, share updates on campaign projects and programs, and personalize your donor acknowledgement, you can make the most of your crowdfunding experience. We’ll help you with it all as we dive in below.
Pros and Cons of Crowdfunding for Small Nonprofits
What are the Benefits of Crowdfunding for Small Nonprofits?
Reach a larger audience: With the right story to pull on heartstrings and show the importance of giving within a certain timeframe, your campaign can go beyond your usual circle and encourage sharing to reach new donors.
More awareness and broader engagement: You don’t need a huge marketing budget, because crowdfunding uses your mission and programs to attract donors. It’s awareness and fundraising in one campaign.
Cost-effective: Social media donor outreach can be a completely free way to share your campaign, and many online fundraising platforms offer social sharing options so you can get in front of more people with a few clicks.
Speed: Most crowdfunding campaigns last around 30 days or shorter, which helps you draw in donations with a sense of urgency as long as you can showcase why fast funding matters (ex. raising money to support families displaced from recent wildfires in need of meals and shelter immediately)
Donor relationships: Unlike other direct giving campaigns, crowdfunding donors support you because of the first impression of your organization and impact they’re making, which gives you an incredible jumpstart on relationships you can nurture and turn into regular supporters.
What are the Considerations of Crowdfunding for Small Nonprofits?
Highly competitive: Many causes use crowdfunding, so it might take time to consider your angle and the story you’d like to share to touch your supporters’ hearts and lead with personality over marketing jargon.
It helps to have an online presence: Campaigns work best when you have established social media channels, a nonprofit website, or an email list. If you're starting from scratch, it may take some prep to build momentum before you launch your campaign.
How much does it cost to run a crowdfunding campaign?
Even the best platforms can take a small cut in transaction or platform fees which add up for a smaller organization where every penny can make an impact. The good news is that you don’t have to pay anything to run a crowdfunding campaign.
You should always look deeper on “free” platforms to account for fees when setting your budget and fundraising goals, or you can always lean on 100% free crowdfunding (that means you keep every cent of what you earn) with Zeffy.
While they won't work with every fundraising campaign, there are a few projects and causes that benefit from crowdfunding campaigns, including:
1. Urgent Individual Needs
Crowdfunding is ideal for raising money for personal causes, like covering someone’s medical bills, education costs, or emergency housing because people can relate to why the money is needed and where exactly it’s going to make a difference. Even small nonprofits can launch campaigns to support individuals in crisis within their communities, which might resonate more than a general fundraising campaign without precise results you’re trying to achieve.
Example: A local food pantry might raise a larger sum of money in two weeks to help a single mom stay in her home after an unexpected job loss with a timely crowdfunding campaign.
2. Disaster Relief and Emergency Aid
When disaster strikes, people want to help right away and look for ways to do so everywhere they can. Crowdfunding lets you act quickly, spread the word, and collect donations quickly to support urgent needs as you place your organization in front of heightened urgency to help.
Example: After the early 2025 California wildfires, Google searches and social media were filled with lists of ways to give and small organizations were able to get in front of donors nationwide because it was so timely in the news.
If your nonprofit advocates for legislative, environmental, or social change, crowdfunding can fund your advocacy work and amplify your voice. By sharing a common goal with potential donors, you give them a way to turn their intentions into meaningful action.
Example: A youth-led climate nonprofit might raise money to produce a documentary and bring it to state legislators by leaning into a crowdfunding campaign shared amongst college students.
4. Scholarships & Education Funds
Another reason to run a crowdfunding campaign is to raise funds for individual scholarships. In addition to raising funds for underprivileged students, nonprofits can also support educational initiatives and materials by looking to school community meetings, newsletters, or events.
Example: A crowdfunding campaign may be set up to grant scholarships to graduating seniors to attend college, as a nomination-style process that engages the student body to share who deserves it the most and feel personally invested in donating to make it possible.
Are you trying to cover startup costs, hire part-time staff, or upgrade your tech? Crowdfunding can be a lifeline, especially if your mission resonates with a tight-knit online community.
Example: A mental health nonprofit might raise money from the community to hire its first full-time counselor, leaning into the impact this counselor could have on individuals in need of free or discounted services.
6. Capital Campaigns with Clear Goals
Do you have a big goal, like building a new facility or renovating a space? Crowdfunding can help rally your community around a tangible project, and you can add elements like a fundraising thermometer to show them how every gift counts toward that bigger target.
Example: A small arts nonprofit may launch a $20K goal crowdfunding campaign to renovate an old storefront into a creative youth space.
How Can Nonprofits Build a Successful Crowdfunding Campaign?
When trying to gain attention and loyalty from new donors, understanding the way donor behavior evolves will help you meet the moment with a crowdfunding campaign that resonates. Today’s supporters, especially Millennials and Gen Z, expect more than just a donation form.
They’re looking for meaningful connections, transparency, and opportunities to participate in your mission actively.
Curious how donor expectations are changing in real time? Explore Zeffy's 2025 Donor Behavior Report to see the data behind these trends — and what it means for your next campaign.
Here are advanced strategies aligned with modern donor expectations:
Donors are placing far less emphasis on nonprofit names they know, and more on a story that appeals to their values and priorities. For many, they may prefer to give to a smaller organization that needs their support more, and feel compelled to share your campaign when they know their contributions are appreciated.
Instead of just outlining the problem, frame your campaign story with a clear narrative arc:
Feature one individual or small group who benefits directly from donations, and give the cause a face and name that will make visitors want to give right away.
Highlight not only the need you have, but the potential results that can come from a small donation (ex., every $5 provides a breakfast for this child)
Utilize short-form videos, audio snippets, statistics, or interactive timelines to enhance emotional impact far beyond static text.
2. Design Social Media as an Experience
Today's donors want to be part of your journey, which is where social media can really enhance your crowdfunding efforts especially to reach donors who don’t currently follow you. Make your campaign feel live with ideas like Instagram countdowns, TikTok updates, or Facebook Lives to bring urgency and energy to your timeline.
Tips to enhance the social experience of crowdfunding:
Use stories and reels to provide behind-the-scenes updates.
Create shareable micro-content, like quote graphics from beneficiaries, “before and after” reels, or countdown videos.
Feature donors and volunteers with UGC (user-generated content) to foster community pride and visibility.
Run polls and Q&As during the campaign to maintain high engagement.
3. Embed Participation into the Campaign Experience
Crowdfunding isn’t just about giving, it’s about getting involved. Modern donors want agency, so campaigns that foster co-creation can build loyalty and repeat giving.
Gamify giving: Utilize leaderboards, fundraising thermometers, milestones, and unlockable rewards (such as behind-the-scenes tours or donor shoutouts).
Host micro-challenges: Think of "Share Your Story Day" or "Why I Give" reels, where donors post and tag.
Allow choice and voice: Let donors vote on project priorities or how funds are allocated, knowing people give more when they feel a sense of ownership.
4. Build Long-Term Relationship Momentum
Instead of seeing crowdfunding as a one-off ask, build it as the beginning of your donor engagement funnel. Even if you’re just getting started, it’s never too early to think about how you can keep a relationship with each donor to your crowdfunding campaign after that initial gift.
Tips to build long-term donor relationships from your crowdfunding campaign:
Integrate email flows post-donation that share outcomes, provide behind-the-scenes insights, and outline future involvement paths.
Offer low-barrier opportunities for donors to stay involved, such as digital volunteering or ambassador programs.
Follow up with personal thank-you content (e.g., a video from a beneficiary or founder) that emphasizes the increased value of their contributions because you are still growing your audience of supporters.
9 Steps to Start Your Own Nonprofit Crowdfunding Campaign
Determining a fundraising goal and timeline is an essential first step to see how a specific crowdfunding campaign will play into the bigger picture. If this sounds totally overwhelming, know that you can start small and take your time to build your fundraising plan over time.
In many cases, organizations can use past campaigns to set realistic fundraising goals. If your organization has never hosted a crowdfunding campaign, you can also look at other organizations' crowdfunding efforts.
Here are a few areas you want to cover in your planning phase:
Understand characteristics, preferences, or any helpful values that you see in your current donor base and what potential online audience you’d like to attract
Write out specific fundraising totals for the year, and what that might help you accomplish for your community (this will help you craft your story)
Define how you’ll spread awareness and advertise your campaigns using low to no-cost channels like social media, your website, or any in-person community events
No two crowdfunding campaigns are the same, and how you structure yours will help you appeal to your ideal donors. The following examples are ways your organization can raise more funds online by diversifying funding sources.
Donations only
A donations-only crowdfunding campaign relies on individual donations. You can create donation pages that make giving simple, and add some color about your campaign.
Another way your nonprofit can crowdfund is by selling branded t-shirts or merchandise where the proceeds benefit your goals. This offers a nice incentive to reach more donors and increase brand awareness at the same time with your logo or a campaign design. (Imagine a limited-edition tote bag with your logo and a powerful mantra or quote for mental health awareness month in May that benefits a local therapy clinic)
Fundraising Event
Fundraising events like 5Ks and other sports activities are excellent opportunities to use a crowdfunding campaign alongside a way to unite your supporters in real time. New and existing supporters can participate in your event and share your mission and campaign on social media to collect pledges and donations. You can use Zeffy as an event registration platform and add a peer-to-peer fundraising form for your campaign.
3. Choose a Crowdfunding Platform
After choosing a fundraising structure, you’ll want to find a fundraising platform that offers the necessary features to bring it to life (without requiring your team to spend unnecessary time figuring it all out). When researching online crowdfunding platforms for your campaigns, there are a few items to keep in mind:
Do they offer crowdfunding or peer-to-peer fundraising?
What other fundraising tools do they have?
What are their payment processing fees and how much of each fundraising dollar will you keep?
Do they have a way to collect donor details?
Can you integrate with other third-party fundraising tools?
Each campaign is an opportunity to share a unique and timely story. You can think about the reason someone would want to contribute and what they connect with most.
For example, bringing a single child’s story of attending college based on a scholarship that was made possible because of donations can compel your audience to give again. Similarly, you might share the story of your founders and how the organization came to be, noting the spark moment that turned a need into tangible actions to help so donors can feel themselves becoming a part of that vision.
Keep these things in mind when crafting your nonprofit's story:
Share personal beneficiary stories
Include photos and videos
Clearly show the campaign's impact
Show how donor funds will be utilized
Remind donors of the importance of the crowdfunding process
5. Create Your Nonprofit Crowdfunding Page
Your nonprofit's story should be added to your crowdfunding page along with the following details:
Details about your mission and the impact of the campaign
Amount needed and how funds will be used
A clear call to action
A fundraising thermometer
Ensure that you keep these details clear and straightforward for the donor.
6. Form a Fundraising Team
Once you have an organization's crowdfunding page, it's time to find a few volunteers willing to create one and share it with their friends and family. This will give you a more extensive social media reach.
Here are a few ways to encourage more campaign ownership from your supporters:
Find a few followers with a substantial online following
Start a competition and offer incentives to encourage more participation
Train them on how to crowdfund
Provide detailed program and campaign information
7. Start Spreading the Word
You have your campaign, but now what? How do you make sure your hard work is seen? Even without a full marketing strategy, you can use your crowdfunding campaign as a foundation to introduce your cause to larger audiences.
How do nonprofits promote crowdfunding campaigns effectively?
Make your launch a big deal: You can create more excitement and momentum with a countdown on your website or social media stories to the launch of your campaign and details on where the campaign link will be shared officially, so you drive more traffic from day one. You might even consider launching at an event.
Create bite-sized content: Think about short-form video clips with easy design tools with premade templates like Canva. (free for nonprofits!) You might break up the overall story of your crowdfunding campaign into 5 videos that you can share on social media for the duration of your campaign.
Share updates daily: Take your community with you through the campaign with updates through text, social media stories, or weekly emails (all with a link to your campaign of course). You can share fundraising milestones, video messages from beneficiaries excited about results, announce new supporters who’ve joined the mission, celebrate large gifts, and announce the final days to give before the campaign closes.
Create a reason to share: Think about ways to encourage supporters to share your campaign on their social networks. This might look like:
A prize giveaway, where every social media share, repost, tag, or comment equals one entry
A supportive social media campaign such as “tell us your why” where you encourage donors to share the campaign link alongside their story related to the cause to spread awareness
A challenge that encourages supporters to participate in something fun like a 5K step day, then tag someone else to do the same in support of your campaign and use a branded hashtag to make posts easily searchable
8. Monitor and Adjust
Remember to track your crowdfunding campaign's performance as it continues and adjust your strategy based on the response. This is something you can do for free with Zeffy’s 100% fundraising platform.
Data points that can help you make decisions along the way:
Number of total donors who’ve given to your crowdfunding campaign
Average donation size
Number of one-time vs. monthly recurring donations
Open and response rates to emails about the campaign
9. Show Donor Appreciation and Follow-up Promptly
It is vital to demonstrate to volunteers and donors before, during, and after your crowdfunding campaign that your organization appreciates their participation. This is a simple way to build long-lasting relationships, and luckily, email automation makes it a whole lot easier.
There are several ways to do this, including:
Automatic tax receipts when donors give
Sending personal acknowledgments
Share the impact of their crowdfunding efforts online
Send regular updates
Thank the fundraising volunteers publicly
Continue to build donor relationships with emails, phone calls, and personal contact
Nonprofits that want to convert website visitors into donors with no platform processing fees. Zeffy’s urgency-friendly tools, such as fundraising thermometers, simple campaign setup, and easy sharing options, help campaigns maintain momentum. Combined with free access, it’s a top choice for organizations that want maximum ROI and visibility.
User feedback:
”Besides passing our donors' full gifts on to us, Zeffy serves as donation and donor management software, bringing our grassroots nonprofit to a new level of organization. It also provides information and direction for new and improved fundraising ideas. It was easy to set up and our donors appreciate that it's easy to set up recurring donations. The few times I've contacted customer support they were quick to respond and very helpful.” - Mary T.
2. The Best Option for Highly-Customized Crowdfunding: Fundrazr
Fundrazr is a multi-purpose crowdfunding platform for organization and individual fundraising campaigns. Users can create campaigns in minutes and encourage donors to give by sharing the campaign page with others online via social media with just one click.
Key Features:
Peer-to-peer campaigns
Mobile giving
Recurring giving/subscription billing
Easy social sharing
Third-party integrations
Membership management
Donation tracking
Automated tax receipts
Pricing:
2.9% + $0.30 credit card processing fee
Best for:
Individuals and organizations with a strong social media presence. FundRazr encourages diversification through membership and recurring giving options, making it ideal for converting one-time donors into long-term supporters. Their social virality tools make it easy to spark donor-driven urgency through rapid sharing and peer competition.
User feedback:
“I liked that the campaign does not have to be all or nothing. I also like that funds raised outside the platform can be counted in the total. These are features that were not available with my previous campaigns on Kickstarter. I was very happy to have the flexibility to reach my goal through in person avenues as well as through the online campaign.” - Andrew C.
3. The Best In-Depth Crowdfunding Platform for Established Nonprofits: Classy
Classy is a comprehensive online crowdfunding platform that enables nonprofits to connect with donors and raise funds. Classy makes it easy for supporters to view their donation history, manage their contact information, track recurring donations, access receipts, and more. GoFundMe purchased Classy in 2021 to help connect individual donors with nonprofit giving opportunities.
Key Features:
Peer-to-Peer campaigns
Donor Dashboards
Recurring Giving
Virtual and Hybrid Fundraising Events
Gift Matching Management
Membership Management
Mobile Giving
Pledge Management
Third-Party Integrations
Event live stream, chat, polls, and breakout rooms
Price:
Organizations must contact Classy for custom pricing, and transaction fees start at 2.2% + $0.30
Best for:
The combination of Classy and GoFundMe makes it easy for donors to support individuals in need and nonprofits that address the underlying causes. Classy excels at donor journey design, helping nonprofits nurture one-time donors into major gift prospects. Built-in urgency drivers like goal milestones, fundraising deadlines, and live progress bars help campaigns generate action.
User feedback:
”Classy helps us run campaigns that raise funds for our organization! We setup various campaigns such as peer to peer fundraising or recurring giving and attract, manage and cultivate donors with the help of Classy's tools. It is SO easy to create and report on donor activity!” - Lauren A.
3 Common Crowdfunding Mistakes to Avoid
In addition to following the above steps, there are three common pitfalls you must avoid when running a crowdfunding campaign.
1. You've Chosen the Wrong Time for Your Campaign
The success of a nonprofit crowdfunding campaign greatly depends on reaching a larger online audience. The time of year you run a campaign may significantly affect how many people you can get.
International Giving Days
International giving days, such as # GivingTuesday, have many followers, but there is also increased competition for their attention.
At the same time, days like International Women's Day have a specific cause that followers feel strongly about. You can attract more new donors if your organization's mission aligns with this cause. Ultimately, you must decide if the opportunity outweighs the risk of overstimulation.
Major News Stories
The same can be said for stories that garner media attention. Disaster relief campaigns can leverage news publicity to raise more funds, but many organizations will do the same.
2. Your Campaign Doesn't Give Them a Reason to Share
A significant part of crowdfunding marketing is encouraging supporters to share your campaign.
Create a Sense of Urgency
Donors are more likely to give when there is a time limit, whether naturally imposed or created by your nonprofit. Nonprofits can create a sense of urgency with deadline clocks and fundraising thermometers. They can also offer matching gifts and competitions to provide greater rewards for reaching the fundraising goal on time.
Matching Gift Programs
Adding matching funds to your campaign can double the impact of each gift. One of the easiest ways to do this is to match employer gifts. Companies, such as Double the Donation, provide updated lists of companies that match employee donations.
Another type of matching gift campaign can raise even more funds. Nonprofits can find a major donor or sponsor willing to pledge a significant amount if they can raise the same from new and existing donors. Not only do organizations benefit financially from this type of matching gift, but they also excite donors into sharing your story.
Fundraising Competitions
Fundraising competitions are another way to inspire more participation in your campaign. Before sharing your fundraising page on social media, consider offering a prize to entice supporters to participate. Make the competition public to gain more volunteer fundraisers.
You must also regularly share updates on the amount each volunteer has raised and who is currently leading the competition. Volunteers can add a fundraising thermometer to their crowdfunding pages to make monitoring the contest easier.
3. Your Donation Form is Too Complicated
Keep your fundraising page simple to ensure you don't deter donors. The best way to inspire higher conversion rates is to:
Include donation amounts that match donors' interests and ability to give
Nonprofit Crowdfunding Success Stories to Inspire Your Next Campaign
University of Montreal Raises $320,000 for Multiple Sclerosis
The University of Montreal's Faculty of Medicine and the Montreal Neurological Institute decided to undertake research that could support over 77,000 Canadians with Multiple Sclerosis. Doing so required a quick way to reach a large audience of donors online, knowing so many could relate to such a widespread disease.
In 2020, amidst the disruptions of the COVID-19 pandemic in Canada, they were able to use Zeffy's 100% free fundraising platform to host a crowdfunding campaign that successfully surpassed its fundraising goal of $70,000, ultimately raising over $320,000.
With a smooth way to capture donations online, timely health awareness, and compelling storytelling that allows donors to connect to the cause, the organization gained lasting momentum. They additionally gained over 80 social media shares with strong community building and regular updates through a campaign thermometer.
Using Zeffy meant University of Montreal could show donors that every cent of their donation went to the project, instead of to transaction or platform fees. Saving $21,000 in fees made a huge impact on the life-changing research that resulted from this campaign.
#YesSheCan Campaign Crowdfunds to Help Over 3,000 Students
The #YesSheCan Campaign was founded in 2016 to provide young people with the tools, knowledge, and training they need to prepare for college. #YesSheCan's leader, Zaniya Lewis,
Turned her personal struggle with applying to colleges, finding scholarships, and securing jobs to fund her education into a compelling crowdfunding campaign that helps 3,000 students do the same.
For years, the #YesSheCan Campaign used GoFundMe to accept donations online through crowdfunding. In 2022, they turned to more personalized crowdfunding and a huge cost savsings with Zeffy's entirely free fundraising platform.
Zeffy helped Zaniya set up a quick campaign, send automatic tax receipts to donors, and ensure donors that their data was safe to build loyalty that lasts. Today, this organization has raised over $100,000 in donations and grants and without complexity or hidden fees.
2. Choose the type of fundraising campaign you want to run
3. Customize your campaign page with your organization’s story, images, branding, and fundraising goal
4. Launch and share through email, social media, and your website
Is Zeffy really 100% free for nonprofit crowdfunding?
Yes, Zeffy is truly 100% free for nonprofits. We cover all platform and transaction fees, meaning your organization receives 100% of every donation.
Donors can leave a tip to support Zeffy, keeping the platform free for nonprofits but even if they don’t you won’t be responsible for any of it. This makes it an ideal option for organizations with limited budgets or those that want to maximize their impact without sacrificing fees.
FAQs: Simple & Affordable Crowdfunding for Nonprofits
Yes and one of the best times to use crowdfunding is for an emergency. When something urgent happens in your community, people want to help right away. Crowdfunding lets you act fast, get the word out, and start collecting donations immediately without having to wait for a big campaign rollout.
If your nonprofit is small but responsive (which most are!), crowdfunding is your ally in rising to the moment, whether you're helping families after a storm, covering medical expenses, or providing emergency shelter.
Reaching your dollar goal feels amazing, but that’s not the only win. If you're a smaller nonprofit, success might also look like:
Attracting new donors who hadn’t heard of you before
Getting your campaign shared on social media
Turning a few one-time givers into monthly supporters
Seeing your community rally around your story
Zeffy gives you helpful tools to track these things (like who gave, how they found you, and whether they gave again), so you can build on that momentum next time.
You don’t need a design team or fancy video production to engage a community with your crowdfunding campaign. Here’s what works well for small teams to remain relatable:
Share a specific story, like a person or family you’re helping
Add a few authentic photos (even phone photos are fine!)
Break it down: “A $20 donation covers one therapy session,” or “$50 buys school supplies for five kids”.
Use a fundraising thermometer or a countdown to show urgency
Keep your page simple; the easier it is to read and give, the better
Both crowdfunding and peer-to-peer fundraising campaigns are great ways to bring the community together around a common cause. Here is where they differ slightly:
Crowdfunding is when you, the nonprofit, create a single campaign page and ask people to give and share.
Peer-to-peer fundraising is when your supporters help out by creating their own mini campaign pages under your umbrella and reach out to their friends and family to donate.
If you’re a smaller nonprofit, crowdfunding is a great place to start. Once you’ve got a few loyal supporters, you can invite them to be part of a peer-to-peer campaign and help spread the word.
Yes — really. No fees, no catches. Zeffy is the only platform that’s completely free, meaning:
No subscription or platform fees
No credit card or transaction fees
No surprises at checkout
Instead, they ask donors if they want to leave a small tip to help cover the platform’s costs. That’s how Zeffy stays free for nonprofits like yours.
So if your budget is tight (and whose isn’t?), Zeffy lets you keep every dollar you raise, and that’s a huge deal, especially when you’re just starting.
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