Basics · 3 min read
Crowdfunding vs Fundraising: What is the difference?
These two terms are often used interchangeably in Nigeria, but they mean different things. Here is a clear breakdown.
What is fundraising?
Fundraising is the broad umbrella term for collecting voluntary financial contributions through any offline or online channel (events, appeals, galas, or grants).
What is crowdfunding?
Crowdfunding is a specific type of online fundraising where you rally small contributions from many people through a dedicated web platform like Gathr.
The Bottom Line
All crowdfunding is fundraising. But not all fundraising is crowdfunding.
Side-by-side comparison
| Feature | Crowdfunding (Gathr) | Traditional fundraising |
|---|---|---|
| Primary channel | Online platform (Gathr) | Events, appeals, or offline grants |
| Audience | Your network + online public | Known supporters or patrons |
| Scale | Many small donors | Fewer large donors or tickets |
| Speed to launch | 3 minutes on Gathr | Weeks to months |
| Fees | 3.5% flat platform fee | Event venues or printing costs |
| Transparency | Public progress bar | Private or post-event |
When to use crowdfunding
- Urgent medical bills or personal emergency needs
- School tuition or study abroad financing
- Reaching people beyond your immediate circle via WhatsApp and social media
- Requiring immediate public verification and instant bank payouts
When to use traditional fundraising
- Institutional NGO grant applications
- High net worth individual dinner galas
- Ongoing corporate foundation sponsorships