How do I know if I can trust a crowdfunder?

Here at icause, we’re passionate about fundraising, but unfortunately, there are some bad apples out there who are more concerned with making a quick dollar for themselves. There are numerous crowdfunding platforms available, most of them with good intentions, but there are a few in the mix who aren’t what they seem. So how do you tell if a platform is legit? We’re here to help! Follow these key steps to make sure you’re placing your trust in the right people:

1. Research, research, research
2. Phone a friend
3. Ask the right questions
4. Arm yourself with knowledge

Research, research, research

With billions of dollars now invested worldwide in online crowdfunding platforms, there is plenty of room for malicious and criminal behaviour, so you want to ensure that when you're donating money or promoting a crowdfunding campaign, the funds are going to the right place. 

Research should be your first step, just like with most things in life. You wouldn’t invest money in a scheme or buy property without research first, and placing your trust in a crowdfunding platform shouldn’t be any different. We highly recommend you investigate the following factors to determine if there are any hidden issues you need to be wary of:

• Privacy policy - how do they gather and share your information?
• Data storage - do they take steps to protect your personal information from cyber attacks and privacy breaches?
• Payment processing - are funds accepted through trusted third parties such as PayPal, GPay, Mastercard and Visa?
• Warranty and Terms and Conditions - lookout for any suspicious clauses or hidden fees.
• Contact information – how easy are they to contact and where is their contact centre based?
• Cyber security measures - do they have measures in place to combat fraud and other criminal activity?

HINT: if they’re doing things right, all this information should be readily available on their website. Take a look at the Quick Links at the bottom of this page to find out everything could possibly want to know about icause!

Phone a friend

If you can get a first-hand account or recommendation from someone you trust, then you know you’re onto a good thing. Alternatively, there are trusted review sites where you can find unbiased reviews that you can rely on. You can also look at Google and Facebook reviews to find out if people have enjoyed using the platform, or importantly, if they have run into trouble.

Other people’s experiences are a great place to learn about aspects of the platform that they might not be willing to share themselves! And remember, if the reviews sound too good to be true, they might be! Make sure you’re looking at credible review sites, or check the profile and previous reviews of the poster on Google and Facebook to see if anything seems out of place - fraudulent platforms might be using fake accounts and bots to give themselves a glowing review.

Ask the right questions

If you’re considering donating to a crowdfunding campaign, make sure you ask yourself these questions. The answers could alert you to any red flags and save you from donating to a fraudulent campaign:

• How is the organiser related to the intended recipient of the donations?
• What is the purpose of the fundraiser and how will the funds be used?
• Are family and friends making donations and leaving supportive comments?
• Is the marketing aimed at raising money (is it pushy and sales-y) or is it authentic and compassionate to the cause?
• Does the campaign have a social media presence with active and engaged supporters?
• Are there any details that seem misleading, inaccurate or inconsistent?
• Is there a clear way that the funds will be donated to the intended recipient?
• Is the campaign violating any of the terms and conditions of the platform?

IMPORTANT: If you are unsure about even just some of the answers to the above questions, please report these to your crowdfunding platform ASAP so they can investigate.

Arm yourself with knowledge

You should know what to look out for to spot a suspicious campaign. The following are often signs of a fake crowdfunding page or platform, and so you should approach with caution:

(PLEASE DON’T SEND MONEY!)

• No charity logo and charity number.
• Lack of clarity and information about the campaign.
• No regular updates, including photo updates.
• No real proof of the claims made.
• No media coverage despite claims to the contrary.
• No proof of transactions - they might claim to have received a lot of donations already, but have they?

Make your campaign a success!

We take your trust very seriously, that’s why we’ve taken every measure to make sure our site is safe and secure so that you can concentrate on the important stuff - raising funds!

If you’re ready to start fundraising and are looking for the right place to do it, take a look here to find out about the advantages of launching a crowdfunding campaign with icause, including our unique donation method, ‘Switch and Donate’, that lets your supporters donate without spending a cent!

Quicklinks

We want you to trust us, that’s why we’re an open book! Take a look at the quick links below to find out everything you need to know:

Our Security Guarantee

The icause Promise

Privacy Policy

Terms and Conditions

Give us a call - we’ll answer all your questions!