If you hear the term crowdfunding, then sites like Kickstarter or GoFundMe likely come to mind. However, there is another big contender that has made quite a name for itself and for those who have found success in using it. Indiegogo is a crowdfunding platform launched in 2008 that provides a space for innovators and entrepreneurs to join forces with backers and supporters to present communities big and small, on a local or global scale, with thoughtful ideas, products, and causes. The platform aids campaigners, from concept to marketplace. Indiegogo has quite the reputable resume and has helped many reach the financial goals necessary to bring their business plans to life.
What does Indiegogo allow?
According to Indiegogo the following is allowed on their platform:
- For-profit campaigns
- Campaigns benefiting nonprofit organizations or nonprofit beneficiaries
- Campaign for products
- Anything classified as a “community project” that is not a personal cause
- Educational campaigns in the tech and innovation category
For those campaigns that do not qualify for Indiegogo, they refer you to GoFundMe. These campaigns included community-based fundraisers that are for personal causes, medical/funeral/memorial/emergency fundraisers, and any other personal fundraisers that fall under other categories.
Indiegogo has distributed more than $1 million in funding to campaigners. Over 3,000 people have used the platform for benefits and support. Over the past two years, Indiegogo has helped over 130 campaigners launch into major retailers via their partners. The platform has been used to start campaigns in over 220 countries and territories. Touting big numbers, the site has over 10 million people that visit each month. Of the campaigns that reach and exceed their goal, nearly half are run by women. Each month about 19,000 campaigns are launched on Indiegogo.
Indiegogo is free to use when launching a campaign. When it comes to crowdfunding, the platform keeps 5% and charges 3% plus $0.30 in third-party credit card fees. For campaigns that do not reach their goals, a 9% fee is implemented.
Campaigners can choose between fixed funding and flexible funding. Fixed funding says that all funds are returned to supporter and backers if the total goal for the campaign is not met. Flexible funding allows the campaigner to keep the funds even if the goal is not met. Funds will be delivered within 15 business days of the campaign ending so long as all requirements have been met and the campaigner has provided the correct information necessary for the transfer. Indiegogo will only send money if it is over 100 in the campaigner’s currency.
Indiegogo will send a 1099-K form to the person responsible for receiving the campaign funds if the campaign qualifies for the Form 1099-K. The US Government does require individuals and businesses to reports received from crowdfunding. To qualify, the campaign must have raised over $20,000 or had over 200 contributions. A W-9 that includes name, address and Tax Identification Number must be provided to receive a 1099-K.
How It Works. (n.d.). Retrieved from Indiegogo: https://entrepreneur.indiegogo.com/how-it-works/
Is My Campaign Allowed on Indiegogo? (n.d.). Retrieved from Indiegogo: https://support.indiegogo.com/hc/en-us/articles/360000574528-Is-My-Campaign-Allowed-on-Indiegogo-
Will I Receive a Tax Form. (n.d.). Retrieved from Indiegogo: https://support.indiegogo.com/hc/en-us/articles/204738008-Will-I-Receive-a-Tax-Form-