Collecting Private Donations: Quick Help Through Crowdfunding
Want to collect private donations and considering crowdfunding? Learn here how to start a successful fundraising campaign and what you need to know.
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Lukas Rapp
GoodCrowd.org
Reading time: 9 min
Updated: 27.03.2025
There are many reasons why someone might need financial support – from realizing a personal project to medical emergencies and their consequences, or dealing with unexpected events. In such cases, crowdfunding opens up the possibility to mobilize help quickly and easily. In this article, we'll show you how to effectively collect private donations through crowdfunding, what steps are necessary, and how you can activate your personal network to achieve your goals.
Basics of Crowdfunding: What It Is and How It Works
What exactly is crowdfunding?
Let's start with a brief explanation of the concept of crowdfunding. Crowdfunding (or "Schwarmfinanzierung" in German) is a method where many people (the "crowd") contribute money for financing ("funding") a specific idea or urgent needs. Even if individual contributions are small, large sums can be accumulated through a large number of supporters.
There are various models of crowdfunding, not just for personal projects but also for financing businesses (we'll discuss these differences soon in another article). However, we want to focus on donation-based crowdfunding by private individuals who are concerned with financing personal matters and social causes. One last note before we go into more details: often different terms are used in connection with crowdfunding, but they all refer to the same topic. Whether it's called a donation campaign, a fundraising drive, a donation appeal, or a fundraiser - whenever a group of people is mobilized to collect donations for a specific purpose, we're talking about crowdfunding.
Why is crowdfunding ideal for private purposes?
Established crowdfunding platforms like GoodCrowd.org make it easy to tell your story on a personal donation page that can then be shared quickly and effectively with many people. This is a major advantage over traditional fundraising methods, such as directly approaching individual persons or organizing local events, because a much larger reach is possible more quickly. Your campaign can potentially reach thousands of supporters and even go viral, which significantly increases the chances of success. A crowdfunding platform also creates transparency and thus higher trust in your donation appeal, because donors can see exactly how the funds will be used and can easily be informed about updates to your campaign. Basically, you can collect donations for yourself, for others, or for companies and organizations.
How well crowdfunding works for personal causes can be seen in some examples on our platform:
- Help after a house fire: After a devastating fire, enough money was collected within a few days (over 60,000 euros so far) to ease the financial worries of the affected family.
- Financing an urgent operation: To cover the costs for his wife's cervical spine surgery, Blerim collected over 100,000 euros in a very short time, which would hardly have been possible so quickly through traditional methods.
- Emergency shelters after earthquake: After a strong earthquake in Turkey, a group of friends collected over 30,000 euros to finance emergency shelters for affected people.
Starting a Successful Donation Appeal: A Step-by-Step Guide
Planning Your Crowdfunding Campaign
Before starting your campaign, thorough planning is crucial. First, you should clearly define your goal: What exactly do you want to finance and how much money do you need for it? Then think about who the target audience for your donation appeal is. Friends and family are often the first supporters, but what other groups of people might be interested in your cause? Once you know who you want to address with your campaign, you can more easily think about what information these groups need to support you. For example, your friends don't need background information about you, but more distant people probably do.
Selecting the right platform is the next critical step. GoodCrowd.org, as a specialized platform, offers numerous advantages for collecting private donations in Germany and Austria, such as creating a campaign for free, easy usability, and support from a German-speaking support team. Check and compare the conditions, features, and costs of possible platforms to ensure they meet your needs
Create Your Own Donation Page
Now it's time to create your campaign. Here are some steps and tips on how to make your donation page appealing:
- Register on your chosen platform: The first step is to create an account on the platform you want to use for your crowdfunding. Make sure to check the linked email address regularly – you'll often receive additional information through this channel.
- Choose a title for your campaign: The title is the first thing potential donors see. It should be concise, meaningful, and appealing. Try to formulate the essence of your cause clearly and invitingly to generate interest. If you're collecting for a specific person or cause, it makes sense to include the corresponding name in the title. Our experience shows that potential donors often specifically search for these terms.
- Tell your story: People donate to people. Tell your story authentically and transparently – who are you, what is your cause, and why is it important that others support you? If there's a particular urgency for your donation appeal, make that clear in the description. This creates an emotional connection and can increase engagement. You can find more tips for writing a successful campaign text in our blog article on the topic.
- Set a clear, transparent goal: A specific donation goal motivates potential donors to act. Transparent information about how the funds will be used strengthens trust and increases willingness to donate. Important to know: In donation-based crowdfunding, reaching the goal is usually not a prerequisite for paying out the funds. On GoodCrowd.org, for example, funds are paid out regularly and automatically. And if necessary, the donation goal can be adjusted later.
- Use expressive images: Photos can have a strong impact. They help bring your story to life and build trust. Make sure to select a high-quality image for your campaign that fits well with your story. We've summarized the five most important tips for an optimal image in our blog.
Important Tips for Online Fundraising
Create Transparency and Trust
Transparency is crucial when it comes to building trust with your donors. Explain openly from the start how the collected funds will be used. A breakdown of planned expenses shows that you handle contributions responsibly and honestly. This strengthens trust and increases your chance of motivating more supporters to donate. The lack of this transparency is often the reason why campaigns don't work well – that's why we emphasize this again here.
Transparency is also why you should always collect donations using your real name. By appearing with your real name, you show donors that you stand behind your cause. This creates trust because a real person is responsible for the campaign. On GoodCrowd.org, we allow anonymous fundraising in exceptional cases if you are being threatened or using your real name would put you in danger – but for other people, the real name is important to increase the chance of success through transparency.
Use Social Media and Your Existing Networks
The importance of social media in crowdfunding cannot be emphasized enough. Use platforms like Whatsapp, Facebook, Instagram, TikTok und X (formerly Twitter) to share your campaign and post updates. Engage actively in your posts and respond to comments to build a community around your campaign. Ask friends and acquaintances to share your content. Also consider including traditional media where possible. An email newsletter, a local newspaper, or a radio station can help spread your campaign even further.
Keep Donors Updated
Communication shouldn't end once someone has donated. Keep your supporters regularly informed about the progress of your project or emergency situation. Updates maintain interest and show donors how your story continues. You can also send thank-you messages to build an even more personal connection. This can help you when asking for further support, for example, to have your campaign shared more widely.
Legal Notes for Private Fundraising
Please note upfront: We cannot provide legal or tax advice and assume no liability for the accuracy of the information. The following answers are explicitly non-binding, unverified information that serves only to raise awareness and encourage seeking advice from a qualified professional.
It's Legal for Private Individuals to Collect Money for Personal Causes
In Germany and Austria, private individuals are generally allowed to collect money for personal causes. It's important that all information you provide is honest and transparent. In particular, make sure your campaign doesn't give the impression that you're collecting on behalf of an organization or company if that's not the truth.
Donation Receipts and Taxes for Private Donations
Donations to private individuals are usually not tax-deductible donations in the legal sense, but rather gifts. This means that supporters cannot be issued donation receipts in the context of private donation campaigns. This would only be legally possible if the donation recipient is recognized as a charitable organization and is authorized to issue donation receipts.
Gifts to private individuals are also subject to taxation. However, in Germany, the tax-free allowance for gifts ranges from 20,000 to 500,000 euros per supporter within 10 years. The exact amount is determined by the degree of relationship. Multiple gifts per person are added together within these 10 years. A high total sum of your donation campaign is therefore less relevant for tax purposes than the amount of gifts from individual persons. More information is also available in our article about taxes.
Conclusion: How Crowdfunding Helps Quickly and Effectively
Crowdfunding is an effective method to quickly and safely collect private donations for your cause. By using online platforms, you can build a large reach and connect with people who are willing to help you. Keep the following points in mind to make your donation campaign successful:
- Planning is important: Think about your campaign goals, financial needs, and the target audience for your donation appeal.
- Tell your story: Authenticity and transparency are particularly important when writing your text to build trust and empathy with potential donors. The clearer and more connecting your story, the greater the chance of support.
- Share your campaign on all channels: Social media, personal networks, and local media are important tools to spread your campaign and reach as many people as possible.
- Stay active and share relevant news: Keep donors updated on your campaign's progress and show your appreciation through thank-you messages.
Private fundraising can therefore be easier and more effective than you might think. Do you have a personal cause that could be financed through crowdfunding? Then just try it out - a free campaign has no financial risk for you.
Ready to collect private donations? Start your campaign on GoodCrowd.org today
GoodCrowd.org gives you all the tools you need to effectively share your story and quickly find the necessary support. Whether you want to raise money for yourself, friends, family, or a social project – in just a few minutes you can start your own donation appeal for free and begin collecting immediately. And don't worry: If you have questions, our support team is always ready to help you.
FAQ About Private Fundraising: The Most Common Questions and Answers at a Glance
What is private crowdfunding and how does it work?
Private crowdfunding is a form of fundraising where individuals or small groups collect money from many people for personal projects or causes through donation platforms like GoodCrowd.org.
Is it legal for private individuals to collect donations in Germany or Austria?
Yes, in Germany and Austria, private individuals are generally allowed to collect money for personal causes. It's important that all information you provide is honest and transparent. You can find more tips above in the text about legal topics such as donation receipts and taxes.
What elements should a successful donation campaign include?
A successful donation campaign should include a clear and honest description of the donation purpose, an appealing campaign image, regular updates about the campaign's progress, and thank-you messages to supporters. You can find important tips for writing successful crowdfunding campaign text in our blog.
How can I increase the visibility of my crowdfunding campaign?
Increase your crowdfunding campaign's visibility by telling a strong and emotional story and sharing it extensively through social media (Instagram, Facebook, WhatsApp, etc.), email newsletters, and personal networks. Also try to tell your story in traditional media like newspapers or (local) news broadcasts to reach even more people.
What are the most common mistakes made in crowdfunding campaigns?
The most common mistakes include unclear goals, lack of transparency about the use of collected money, and not sharing the campaign enough. Updates and interactions with supporters are also often neglected. Avoid these mistakes by creating a clear campaign description, regularly sharing news, and actively responding to possible questions.
How can I start a crowdfunding campaign on GoodCrowd.org?
To start a crowdfunding campaign on GoodCrowd.org, register on the platform, describe your project in detail, set a donation goal, and begin sharing your campaign through social networks and other media.
What are typical topics for a crowdfunding campaign?
The reasons for creating crowdfunding campaigns are very diverse. From support after a death or help with funeral costs, to help with medical procedures, to covering veterinary costs, you'll find many successful examples where the community has come together to help.
