This reward is frequently, but not always, the object being created, such as a watch, an album, or a film.2. Donation-Based CrowdfundingIn donation-based crowdfunding, contributors typically give small amounts (again, normally between $1 and $1,000, but sometimes more). As the term suggests, in many donation-based crowdfunding there is no ongoing reward outside of gratitude from the inventor or beneficiary of the project (and possibly a tax deduction). Donation-based crowdfunding is normally used to raise capital for a non-profit organization or cause, such as drilling a well or building a school in Africa or for a personal campaign such as a person's treatment or medical expenses. individual.3. Equity CrowdfundingIn equity crowdfunding, backers donate large sums of money (at least $1,000 and regularly much more). When backers provide money, they do not get a reward, but rather a minor share of the company's equity.