Kickstarter uses an all-or-nothing funding model for three reasons: to protect creators, to protect backers, and to create the urgency that helps campaigns succeed.
When a project only receives funds if it reaches its goal, creators can be confident that they have enough money to actually deliver what they promised. Backers can be confident their pledge only collects if the campaign is viable. And the goal itself creates momentum, by giving early backers a reason to recruit others and play a role in bringing something to life together.
This is also what separates Kickstarter from a store. Backers are not making a guaranteed purchase. They are funding a creative process, with the built-in assurance that if the campaign falls short, no one is charged.
How creators control all-or-nothing funding
Creators set their own funding goal and campaign deadline. Campaigns can run anywhere from one day to 60, though 30 days tends to work best. Once a campaign launches, both the goal and the deadline are locked in.
If a creator decides the timing isn't right, they can cancel and relaunch later. They will need to bring their original backers back on board, which they can do by posting an update on their canceled project. There is no platform consequence for starting over.
What are the fees?
If a project is successfully funded, Kickstarter collects a 5% fee from the funds collected. Stripe, our payments processor, will also collect a payment processing fee (roughly 3-5%).
Frequently Asked Questions
What happens if a project does not reach its goal?
If a campaign ends without reaching its funding goal, no money changes hands. Backers are not charged, and the creator receives no funds. When a campaign ends short of its goal, creators are welcome to relaunch their project at any time.
Can a campaign raise more than its goal?
Yes! There is no limit on how much a campaign can raise, and any funds collected beyond the goal will be considered overfunding. Many creators use overfunding milestones as stretch goals, unlocking additional features or deliverables for backers.
Can backers cancel a pledge?
Backers can cancel a pledge at any time before the campaign ends. After a campaign ends successfully, pledges are collected and can no longer be canceled.
Why is there a deadline?
A deadline creates urgency. A fixed end date gives potential backers a reason to act, and gives early backers an incentive to recruit others. Without a deadline, the collective momentum that all-or-nothing funding is designed to generate would not exist.