Originally designed to support nonprofit fundraising, Razoo was created in 2006 with the desire to make online fundraising easy, fun and engaging for individuals, nonprofits, teams, and communities. The majority of funds raised through Razoo are for nonprofit organizations, but personal fundraising has been growing within the last several years as well. The name “razoo” comes from an Australian coin that holds little value on its own but becomes valuable when combined with many. This is the spirit Razoo brings to crowdfunding—individuals working together can change the world as they fund the causes they care about.
Razoo’s website is based on a Donation funding model. The Razoo team believes giving is a lifestyle, which is why users create a Razoo profile versus a single campaign. Users can both create fundraisers and donate to existing fundraisers after a profile has been created. It is easy to monitor progress of personally developed fundraisers and pre-existing fundraisers by simply scrolling through the latest information provided on the user’s activity feed.
Razoo also offers what they call Online Giving Events, which are online fundraising competitions (of any duration) for community foundations, higher education institutions, or large, multi-chapter nonprofits to connect to their community in an online fundraising capacity. This allows for organizations to continually raise funds year-round on a massive scale.
Razoo offers a Keep What You Raised fund type. For charity giving, this is a better model to use. In All or Nothing types, if you don’t reach your total pre-determined monetary goal, you don’t receive any funds. In ‘Keep What You Raised’ types, you receive all funds donated even if you fall short of a specific monetary goal.
Another perk of using Razoo is that donors are given the option to cover all platform and processing fees on their contribution, which means nonprofits can receive even more funding. Industry research shows that 40% of donors choose to cover these fees rather than having them come out of their donation amount.
Maximum Allowed Raise
Razoo doesn’t limit the amount of funds you or your organization can raise. This makes sense, being that they have a ‘Keep What You Raise’ funding type. No funding limits is a better option for anyone raising monies for charity or 501c3 causes.
There is no minimum or maximum campaign length for Razoo’s campaigns. This provides great flexibility and less pressure when you’re trying to raise donations for charities.
Once a campaign is completed, Razoo disburses the donated funds to the nonprofit, helping them continue to serve their community. Donations are batched by calendar month received; campaign funds are disbursed to the appropriate nonprofit around the 10th of the following month. For example, any and all funds made in January will be sent by check to the organization around February 10th. Nonprofits may also choose to receive donations via EFT or direct deposit. In this case, donations made from the 1st through the 15th of that month will be made available on the 25th, and donations made from the 16th through the last day of the month will be made available on the 10th of the following month.
Administrative Work Options
A helpful and convenient work administration feature offered by Razoo (at no additional cost) is their end of year giving reports. These annual giving reports cover all donations the user made during the tax year and contain all the information necessary to file their taxes on time.
Razoo charges users a 4.9% Platform Fee and a 2.0% + 30¢ Payment Fee on each transaction. A 7.9% fee is charged for users implementing a Personal Fundraiser type campaign and includes both platform and processing fees. Razoo does not charge a completion fee or a non-completion fee if you do not complete your campaign. It is good that they don’t charge for completion or partial fees, as most crowdfunding companies will, but the other fees are high enough. Plus, there are other crowdfunding sites that don’t charge for using their platform while others only charge for processing fees.