The total fees of 8% will be collected from your funding total. All fees will already have been taken by the time the funds arrive in your account.
If you want to know the maths, this breaks down to a 5% Crowdfunder fee, a 1.67% transaction fee and VAT.
If your project does not collect any money, you will not be charged any fees.
Crowdfunder’s fee allows us to continue working with projects that are tackling society’s challenges and make ideas happen.
Total fees: 8%
You will receive your pledge payments once your project has closed successfully. With ‘all or nothing’ funding, a project is only successful if it hits it’s target. With ‘keep what you raise’, all projects that raise any funds are considered successful.
Project supporters will be charged at the time of making their pledge and the funds will then be transferred to the project owner once the project closes successfully. Payments will be transferred into your bank account within 7 working days after the project has closed.
However, your money will only be transferred if you have successfully verified your ID against your bank account details. After the ID has been successfully verified (if this is after the closing date of the project) it will take 7 working days from when the ID was verified for the money to reach you. See the 'Money' section of your edit project dashboard to check if your ID has been successfully verified.
There are two different funding methods for Crowdfunder projects:
All or Nothing – You only receive your pledges if you hit your target. This is best suited for projects that need to reach a set target to be able to carry out their aims. The average pledge size on 'all or nothing' projects is £50.
Flexible Funding – Keep all your pledges, whether your projects hits target or not. This is best suited for causes or charitable projects. The average pledge size on 'keep what you raise' projects is £10. 'All or nothing' projects generally raise more money, but you do have to hit your target. 'Flexible Funding' means you’ll keep all the money pledged by your supporters but you’ll also have to fulfil all the rewards no matter how much or little is pledged.
All or Nothing – If you don't hit your project target, the money pledged will be refunded to your backers. Your backers will receive an email informing them that the project has not reached its target and that they will receive this refund. You will not be charged any fees if an 'all or nothing' project does not reach it's target.
Keep what you raise – You will receive any funds pledged on your project regardless of whether you reach your target or not. Your backers will receive an email informing them that the project has closed.
The longest a project can run for is 8 weeks (56 days). However, we believe that the the optimal duration of a crowdfunding project is 4 weeks (28 days). There is always a spike of activity at the beginning and end of a project, so keeping a project relatively short allows you to keep the momentum going.
At the beginning of 2018 we updated our payment system. So if you have Crowdfunded with us before, things might be a little different. The great news is that these changes will make your Crowdfunding experience much smoother. The main changes are:
The fee structure has been simplified - The Crowdfunder fee of 5% VAT is exactly the same. However, the previous payment provider fees of 1.4% 20p per pledge is now a easy peasy 2%. With the Crowdfunder fee, VAT and the payment provider fee included this all rounds out at 8%.
No more failed payments - On the old system there was the chance of payments failing when the project closed but now this cannot happen. Hurray!
You will not need a Stripe account to collect your money - The money simply goes straight to the bank account that you add to the project. Simple.
Supporters are charged at the time of making a pledge - On the previous system supporters were charged when the project closed. With this new system they are charged at the point that they make the pledge. If the project is unsuccessful they will receive a refund within 5 days of the project closing.
Still need to know a little more? Crowdfunding has its challenges but don't worry, we're here every step of the way. Get in touch with one of our experts.