Why reward-based fundraising works for community projects
A donation appeal asks for generosity. A reward campaign asks for participation, and gives people something to hold at the end — a shirt, a name on a board, a seat at the opening. For a community project, that keepsake is often the point.
It also gives you a deadline and a number, which are the two things that turn a good cause into a campaign people talk about.
Running a nonprofit campaign
- 1Verify the organisation
Submit your EIN, registration documents and the details of the person running the campaign. Verified nonprofits pay the reduced fee automatically.
- 2Name the project, not the budget
"Resurface the courts before the fall season" raises more than "support our program."
- 3Break the goal into pieces
Show what $25, $100 and $500 each buy. Concrete units are easier to fund than a lump sum.
- 4Give recognition, not merchandise
Plaques, wall listings, programme credits and invitations cost little and mean more to local donors.
- 5Report back publicly
Post photos of the finished project. It is the single best thing you can do for your next campaign.
The reduced nonprofit rate
Verified nonprofit and community campaigns pay 3% instead of 5%. Card processing of 2.9% + 30¢ still applies, because that goes to the payment provider rather than to us.
There is no listing fee, no monthly fee and no charge if a campaign never launches.
Common questions
Do we need 501(c)(3) status?
A registered nonprofit with an EIN gets the reduced rate after verification. Unregistered community groups can still raise money on Pledzy at the standard rate, as long as the campaign and its organiser are clearly identified.
Are pledges tax-deductible donations?
Generally no. Because backers receive a reward, a pledge is usually treated as a purchase rather than a charitable gift. Ask your accountant, and never promise deductibility on your campaign page.
Can we run more than one campaign a year?
Yes. Many groups run one campaign per project or per season rather than one large annual appeal.
Keep reading
Every fee on a crowdfunding pledge in plain language — platform fee, card processing and the hidden costs most owners forget — with the real math on a $25, $50 and $250 pledge.
A step-by-step guide to raising money for a small business from your own community — what to ask for, how long to run, and what to offer backers in return.