Crowdvance.com has announced they are dropping the service fee it deducts from donations to 0%, down from 6.5%. Dylan Fox, CEO of Crowdvance stated,
“When we launched Crowdvance, we set out on a mission to help organizations run more engaging, effective, and efficient fundraisers. We got the engaging part down by rewarding donors with gifts from great national companies we partner with, but our fee was getting in the way of our company reaching all of our goals.”
Most other crowdfunding platforms operate using the same model: no cost to sign up, but deducting 3-10% from donations as a service fee on top of credit card processing fees. As of today, Crowdvance becomes one of the only online fundraising platforms on the planet that does not deduct an additional service fee on top of standard credit card fees.
Crowdvance generates revenue from national and online companies which sponsor grassroots organizations around the country. They charge these companies and thus can pass the benefits of that model back to our users to make fundraising 100% free.
Crowdvance announced this service fee reduction after completing a recent round of seed-stage financing.
“After we closed our seed round, we were able to think longer term, and that’s when our team realized we wanted to go big and really change the game,” said Fox.
“We saw that donors were getting burned out with traditional and online fundraising campaigns,” said Zachary Herman, CMO of Crowdvance. “With traditional fundraisers, small organizations are wearing out donors by trying to sell them the same bland fundraising products every year. How many tubs of popcorn or t-shirts can someone buy? And with more organizations making the switch to online fundraising, donors are experiencing fatigue. We solve that problem by rewarding donors for their good behavior. Donors can save on things like concert tickets or pro-sports tickets, or even on jewelry, as a reward for contributing through Crowdvance to an organization they care about. Plus, now a donor can have their donation go where it is intended to go.”
“We can support a 0% service fee because of our innovative business model,” said Fox. “We’re focusing on the value we deliver to national companies as our main business, and passing the benefits back to the organizations that use our platform to raise funds, making it entirely free.”
