Rewards crowdfunding offers some type of tangible reward, like a pre-sale of the object that the campaign is raising for or an unrelated object or a service, like a piece of art or a massage. Rewards are offered in a tiered system, so the backer will get a different reward if she donates $5 than if she donates, say, $100. In a good campaign, the rewards will get “better” as the donated amount.
Examples of popular reward crowdfunding platforms include: Kickstarter, IndieGoGo, and RocketHub.
Donation crowdfunding doesn’t offer any kind of reward to the backer — these are people who are giving to a worthy cause out of the goodness of their hearts. They may get a tax receipt, but that’s really it.
Examples of popular donation crowdfunding platforms include: GoFundMe, Fundly, and DonorsChoose.