What Is Kickstarter?
Kickstarter is an online crowdfunding platform that facilitates the funding of creative projects through public contributions. These projects range from innovative tech gadgets and artistic endeavours to films, games, and more. Creators set a funding goal and a deadline, and backers pledge money to support the project. If the project reaches or surpasses its goal by the deadline, backers are charged, and the project can move forward.
With its user-friendly interface and global reach, the reward-based crowdfunding platform Kickstarter has garnered immense popularity globally. This informative guide will walk you through all the essential aspects of Kickstarter, including its fees, reliability, taxation, reviews, and the best alternative available.
Kickstarter operates on an “all-or-nothing” funding model. If the project fails to meet its funding goal, no money changes hands. However, if it succeeds, Kickstarter applies the following fees:
- Kickstarter’s platform fee: 5% of the total funds raised.
- Payment processing fees: Approximately 3-5% of the total funds raised, depending on the region and currency.
Funds raised through Kickstarter campaigns may be subject to income tax, depending on the creator’s country of residence. It is crucial to consult with a tax professional to ensure compliance. Also, the Value Added Tax (VAT) may be applicable to rewards offered to backers. The VAT rate varies across countries, so creators need to be aware of the relevant regulations.
How Does Kickstarter Work?
Through Kickstarter, creators work on project ideas, working to bring them to life, while backers are folks who pledge money to join creators in bringing Kickstarter projects to life. As this is a reward-based platform, the creator usually shares a piece of their project with their backer community. One has to fulfil all the creator requirements in order to be a creator at Kickstarter.
Kickstarter Review And Experiences
Numerous success stories have emerged from Kickstarter campaigns across the globe as the platform operates in most countries. However, due to its funding model and mediocre customer service, the platform is rated 1.1 stars on Trustpilot based on more than 700 reviews and has a 3.4 rating on Google based on more than 34 thousand reviews.
Kickstarter has revolutionised the way creative projects are funded, offering a powerful platform for individuals to bring their dreams to life. However, potential creators should also research and learn from failed campaigns to understand common pitfalls and have alternative donation websites for their upcoming projects.
WhyDonate – Offering both flexible and fixed funding options, WhyDonate is a versatile platform that allows creators to keep funds even if they don’t reach their goals. This Netherlands-based crowdfunding platform caters to the same audience in the same manner. WhyDonate also offers its platform to both organisations and individuals but at a better price. WhyDonate is affordable, reliable and simple at the same time. Focused on all kinds of causes, including personal financing, community projects, charities, and social enterprises, WhyDonateis an excellent choice for initiatives that prioritise social impact.
What Payment Methods Does Kickstarter Accept?
Kickstarter accepts debit or credit cards associated with Visa, Discover, JCB, MasterCard, UnionPay, or American Express. The platform does not accept PayPal as of now.
|Donation platform||Reviews||Platform costs||Transaction Costs||Other costs||Payment methods||Launch date|
|WhyDonate||4.7||0%||1.9 %+ €0.25||None||Stripe, Credit card, PayPal, Bank transfer, Direct debit, Sofort,|
Bancontact, EPS, Giropay, Belfius, KBC
|GoFundme||4.5||0%||2.9% + €0.25||None||Credit card, iDEAL||2010|
|Donorbox||4.5||2%||1.4% + €0.30 (3.4% + €0.35 PayPal)||Add-on Integrations (optional)||Credit/debit cards, Apple Pay, low-cost ACH and SEPA bank transfers, Google Pay and PayPal.||2014|
|Leetchi||3.1||1.9% to 4%||0||None||Credit cards (VISA/Master Card)||2009|
|KissKissBankBank||4.3||8% of the amount raised (transaction cost included)||3.4% + 0.25c||None||Credit card, VISA, Mastercard, Maestro, Cheque, Bank transfer||2009|
|Kickstarter||3.4||5%||3% + €0.20||None||Debit / Credit Card||2009|
|Ulule||3.5||4.17% – 6.67%||2.9% + $0.30||None||Carte Bleue (France), Visa, MasterCard, Maestro/Bancontact (Belgium), iDeal (Holland), Direct debit||2010|
|Crowdify||4.8||9% to 11%||0%||None||Twint, Postfinance, Credit cards (VISA/MasterCard), Paypal||2004|
|Goteo||2.9||5%||0.8%||PayPal 3.4% + €0.35||Credit card, PayPal or Goteo Virtual Purs||2011|
|Indiegogo||2.5||5%||3%*+ €0.20||€25-Transfer Fee||Bank Transfer, Wire Transfer||2008|
|* All tax systems depend on the tax regulations of the country.|