The rise of crowdfunding
In recent years, crowdfunding has transformed the traditional fundraising landscape, breaking down barriers between those in need and those available to help them. Crowdfunding has made it possible for people to offer direct support to those who need emergency financial assistance, contributing to the larger trend of individual giving. In 2023, 16.8% of Canadian tax filers declared making charitable donations.
People often turn to crowdfunding during times of economic instability and financial difficulty. For example, the current cost-of-living crisis in Canada has profoundly impacted what people can afford. In 2025, 81% of Canadians agreed that they’ve been affected by and are worried about rising food prices, and 50% of Canadians were concerned about whether they can afford housing or rent.
How crowdfunding works
Our industry-leading fundraising tools help individuals, groups, and organizations share their stories far and wide. Even small donations can eventually grow into something extraordinary.
1. Create your fundraiser
GoFundMe Canada helps you quickly create a fundraiser and tell your story. All you have to do is enter your location and reason for fundraising and you’ll be prompted to create your page. Include images, your goal, and personal anecdotes to make your story compelling. You can raise money as an individual or invite others to join your fundraising team. Learn more about team fundraising.
2. Share your fundraiser
Our sharing tools help you spread the word about your story via social media, emails, and even text messages. We make it easy to keep your network informed so you can raise more money quickly. Once you’ve created your page, you can post regular updates and ask your network to share it on their social media, as well.
3. Easily accept donations
GoFundMe Canada allows you to send donations directly to your or your beneficiary’s bank account so that you can get help right away. There’s no platform fee, meaning it’s free to start and manage crowdfunding. Find out more about transaction fees here.
Five of the most common questions about crowdfunding
Despite now knowing what crowdfunding is, you’ll likely still have some additional questions about it before you create your own fundraiser.
Here, we look at some of the most common crowdfunding questions.
1. Do you need to pay back crowdfunding?
Crowdfunding on GoFundMe is donation-based, so no, you do not need to pay it back.
2. How do I know if crowdfunding is right for me?
The best way to understand crowdfunding is to recognize that it can work for anyone, and there is no cause too big or too small. The beauty of crowdfunding is that it exists to help a diverse array of people and meet various needs. Whether you want to help your pet, raise money to pay for a memorial, or get help with bills, a successful fundraiser can allow you to overcome the financial barriers that may stand in the way.
While most people think crowdfunding projects are only for individuals who need emergency financial assistance, businesses looking to fund a new project or raise capital can also fundraise online. Entrepreneurs can even use crowdfunding to finance startups or new creative projects.
3. What are the different types of crowdfunding?
- Donation-based crowdfunding: In donation-based crowdfunding, people search for and support a cause by donating to it without receiving anything in return. The person running the fundraiser isn’t obligated to pay back donors or give them anything else in return for their contributions. GoFundMe is one of the major crowdfunding sites that uses donation-based crowdfunding.
- Equity-based crowdfunding: In equity-based fundraising, the fundraiser organizer accepts money from people looking for crowdfunding investment opportunities, typically to help launch a new business or a new product launch. In return, individual investors will receive a small stake in the business or company. You can find out how to raise money for a business here.
- Rewards-based: Through reward-based crowdfunding, the organizer of the fundraiser provides a reward or product to donors, usually a service or physical item, in exchange for a contribution.
Note: GoFundMe only allows donation-based crowdfunding.
4. Is it okay to raise money for myself?
Yes, absolutely. Thousands of people start online fundraisers every day to raise money for themselves. Understandably, you might be nervous about asking for money. However, it’s important to remember that nearly everyone has experienced financial hardship at one point or another. You might be surprised by the number of people who want to support you when you need it most.
5. What is the best way to get more donations?
While there’s no magic formula for attracting potential investors or supporters, there are steps you can take to set yourself up for success. The most important thing you can do is create a compelling fundraiser and build a community that empathizes with your cause. Investing the time in your fundraiser story will inspire your network of friends and family to take action.
What are the advantages of crowdfunding?
When funding from the government and nonprofits falls short, many people turn to crowdfunding, relying on the kindness of their community. One of the benefits of crowdfunding online is that it removes the traditional barriers that typically exist when asking for support, making it simple to overcome financial obstacles quickly or raise money for a worthy cause.
Here are some of the main advantages of using a crowdfunding website:
- There is no application process, whereas you have to apply for government grants.
- There are no long wait periods to receive your funds, unlike with government or charity funding.
- Crowdfunding takes the fear out of asking for financial help. It’s simple to share your fundraiser with your network of friends and family members on social media.
- Crowdfunding makes it easy to reach a large number of people outside of your network.
What is crowdfunding for nonprofits?
Crowdfunding for nonprofits is a method of raising money for specific projects by targeting individual donors who care about the cause.
Online crowdfunding can be incredibly successful for nonprofits with the platform and right fundraiser strategy. Platforms like GoFundMe Canada make it easy to create your fundraising page and share it with your network online. Along with telling a compelling story, you can create a content calendar for regular posts and updates, create groups on social media to update your regular donors, and time your email marketing for specific milestones in the project.
In Canada, crowdfunding nonprofits must comply with Canada Revenue Agency (CRA) rules and ensure the funds are used for authorized purposes. You must also file Suspicious Transaction Reports (STRs) if you have reason to believe a donation is suspicious.
Choosing the right crowdfunding platform
Selecting the right platform for your fundraiser is crucial. Consider this selection criteria:
- Payment methods available
- Your audience
- Where your category fits
- Trust and safety
- Withdrawal rules
- Resources and integration
Here’s what sets GoFundMe apart from the rest:
Trust & safety
Backed by the GoFundMe Guarantee, our platform is the safest, most secure place to give and receive donations. We have a dedicated Trust & Safety team that works day and night to prevent misuse and make sure funds reach the right hands.
Advanced tools
The key to fundraising success is sharing your fundraiser with as many people as you can. With built-in social fundraising technology, GoFundMe’s fundraising platform makes it easy to spread awareness for your fundraiser so you can increase donations.
Fundraising resources
Our resource center offers proven fundraising ideas and tips to set you up for success. Our blog is packed with content that helps you drive more donations to your fundraiser. Learn more about why you should choose GoFundMe.
Crowdfunding best practices
Setting up a fundraiser can be daunting, especially when you’re waiting for donations to start arriving. Fortunately, there are some steps you can take to help spread awareness of your fundraiser and drive donations.
Tell a compelling story
From your title to your story and photos, your fundraiser story should be based on your needs, and it should inspire people to donate. Before getting started, learn how to make your fundraiser successful with our fundraiser story tips. Also, don’t forget to upload several high-quality photos or a video to help increase donations to your fundraiser exponentially. For more tips, see these helpful blog posts:
Share and update
Every time you share your fundraiser, you’ll bring in an average of $43 in donations, so utilize TikTok, Instagram, Facebook, and other social platforms to encourage others to do the same. If you gain enough momentum, your fundraiser could go viral. Well-written updates with any news you can share will also keep supporters and potential donors engaged and informed. For more tips, see these blog posts:
Thank your donors
Everyone loves being thanked after doing a good deed, and it’s no different with your donors. In lieu of gifts or rewards, sending thank-you messages is a way to make each donor feel appreciated. As a bonus, expressing gratitude can also encourage additional donations towards your funding goal and increase donor retention.
Our blog post How to Write a Donation Thank-You Letter That Gets You to Your Goal, will walk you through the process of crafting the best thank-you possible. Be sure to also check out our list of 20 Affordable Ways to Say Thank You to Donors if you’d like to show your thanks beyond an email.
