Crowdfunding has existed for a long time in different cultures and under various names. In African and Caribbean communities, there are money-saving and donation circles called sou-sou. Houses of worship may start a collection for a food drive or the victims of an accident. Nowadays, the internet helps individuals and groups draw on networks near and far to raise funds for medical care, charities, necessities, learning and education, animal rescue, and other causes or issues. Despite its growing popularity, myths about crowdfunding lead many to assume the process is time-consuming, expensive, and unsafe.

Let’s learn the truth behind six common myths about online crowdfunding.

Six Common Crowdfunding Myths That Should Be Busted

Myth #1: Starting an online fundraiser takes a lot of time

On FAN, setting up a donation page is simple. Pick a funding goal, create a catchy fundraiser title, and choose the category that best fits your fundraiser. There are places to include media like videos and photos to share your story or issue with the world. Once you gather materials, creating a fundraiser takes a few minutes from start to finish.

Fundraiser sharing can be done over Facebook, Twitter, WhatsApp, or other channels.

Myth #2: I can’t raise money for myself

Asking for help isn’t always easy. You may have been raised to believe that an ask for donations is shameful, a sign of failure, or a show of weakness. But in fact, everyone needs help at some point. If you’re having difficulty paying your bills, know you are not alone. In 2019, the Federal Reserve found that three in 10 American adults don’t have enough savings to cover expenses for three months in case of an emergency. Millions of people are one job loss or illness away from financial hardship.

Fundraising for individuals is an effective way to get your or a loved one out of a difficult situation.

Myth #3: No one will want to donate to my fundraiser

Your friends, family, and community want to help you—all you have to do is spread the word about your cause. Small business advising firm Fundera gathered crowdfunding statistics that showed projects had an average of 47 backers. It also found that if people shared the fundraiser via personal email, over half of the recipients donated to the fundraiser.

Sometimes, you need help, and data shows that your network can get you to your goal. To that end, FAN provides fundraising tips to help you get the most out of the platform.

Myth #4: Crowdfunding is only for serious emergencies

People come to FAN for all types of needs. The platform allows users to raise money for funerals and memorials, education and medical bills, businesses, and entrepreneurs.

Many countries provide a lot of non-emergency money and services to needy residents. For example, the US has a weaker social safety net compared to European countries. The COVID-19 pandemic has made gaps in the social safety net especially clear. A personal donation website can offset everyday costs when there is little help from the government or nonprofits.

Myth #5: Crowdfunding isn’t safe

Phishing schemes and significant data breaches in the news make people worry about the safety of online donations. FAN shares these concerns with you. That’s why it’s easy to use FAN safely. FAN’s Trust & Safety team works hard to verify donors. It also provides tips on determining if a fundraiser is legitimate before you donate.

When crowdfunding on FAN, you’re covered by the first and only donor protection guarantee: the FAN Giving Guarantee. We guarantee you a full refund if something isn’t right. This is one reason why millions of people have used FAN to donate to causes they care about.

Myth #6: Crowdfunding sites are expensive

FAN’s pricing is simple. In the US, starting or managing your fundraiser on FAN is free. However, one small transaction fee per donation covers all your fundraising needs. Everything else goes directly to your cause because that’s what matters most. A 2.9% + $0.30 transaction fee is automatically deducted from each donation, so you never have to worry about paying a bill. In contrast, other top crowdfunding sites have fees that range from three to 12%.

You’re a crowdfunding myth-buster, so it’s time to start a fundraiser.

If you’re considering starting a fundraiser, remember that people are naturally generous. It feels good to help someone in need. Myths about crowdfunding prevent people from asking for help, but myths are not reality. Now that you know the truth, you can immediately start a fundraiser for yourself, a loved one, or a charity. For more information about how FAN works, please give us a call at 313-644-0150.