Crowdfunding explained
Crowdfunding, explained without the jargon.
Crowdfunding means raising money from many people, usually online, towards a stated goal. The type of crowdfunding decides what supporters get back, which rules apply and how fees work.
What is crowdfunding?
Crowdfunding is raising money from a large number of people, usually through a website, instead of from one funder. Each supporter gives a small amount towards a published goal, such as medical costs, a community project, a charity appeal or a new product, and the page explains what the money is for.
What are the main types of crowdfunding?
There are four main types. Donation crowdfunding raises gifts for a cause with nothing financial in return. Reward crowdfunding offers a product, ticket or perk. Loan crowdfunding lets people lend money for interest, and investment crowdfunding sells shares or similar stakes in a business.
The FCA regulates loan-based and investment-based crowdfunding. Donation and reward crowdfunding are not investments, although the payment services behind them may still be regulated. FundraiserFlow focuses on donation fundraising only.
| Type | What supporters get | Typical uses | Regulated by the FCA as lending or investment? |
|---|---|---|---|
| Donation | Nothing financial; sometimes a thank-you | Charities, medical costs, emergencies, community projects | No |
| Reward | A product, ticket or perk | Creative projects, new products, local businesses | No |
| Loan (peer-to-peer) | Repayment with interest | Business and personal loans | Yes |
| Investment | Shares or business-backed loans | Start-ups and growing companies | Yes |
What is the difference between crowdfunding and fundraising?
Fundraising is the broad activity of raising money for a cause, including events, collections, grants and legacies. Crowdfunding is one method: an online page that collects many small contributions towards a public goal. A charity might fundraise in many ways and use crowdfunding for one specific appeal.
What is all-or-nothing versus keep-what-you-raise?
With keep-what-you-raise, the organiser receives what is donated even if the target is missed. With all-or-nothing, money is only collected if the target is reached by the deadline; otherwise supporters are not charged or are refunded. All-or-nothing suits projects that cannot go ahead with partial funding.
Card payments cannot simply be held for a whole campaign — card authorisations normally expire within about a week — so all-or-nothing platforms usually save a payment method and charge it only when the campaign succeeds.
How much does crowdfunding cost?
Costs usually have two parts: a card-processing fee and a platform fee or optional tip. For example, Stripe’s standard UK pricing in October 2026 was 1.5% + 20p for UK cards, 2.5% + 20p for EEA cards and 3.15% + 20p for other international cards. Some platforms charge no platform fee and ask donors for an optional contribution instead.
FundraiserFlow does not take live payments yet. The fees page explains how a donation and any optional contribution will be shown separately before anyone pays.
Is crowdfunding safe for donors?
Most crowdfunding is genuine, but check before you give. Look for a named organiser, a clear recipient, a realistic budget and dated updates. For a charity appeal, check its registration number on the official register. Be wary of urgent pressure, vague stories and any request to pay outside the platform.
Can I claim Gift Aid on crowdfunding donations?
Only when the money goes to a UK charity recognised by HMRC and the donor is a UK taxpayer who makes a Gift Aid declaration. Donations to individuals, rewards, tickets and purchases do not qualify. Where a platform deducts fees, the charity can still claim on the gross donation if it can show the fees.
How does FundraiserFlow work today?
FundraiserFlow is in pre-launch. You can explore official appeals that link to each organisation’s own donation page, use planning tools and save a private fundraiser draft on your device. FundraiserFlow does not take payments yet, and it is not a charity.