Navigating medical expenses can be overwhelming, but crowdfunding offers a powerful alternative.
In this guide, we’ll explore the different types of healthcare crowdfunding, from donation-driven campaigns to innovative blockchain models. Whether you're a patient, caregiver, or healthcare innovator, understanding these funding options can make a life-changing difference.
Let’s dive into it!
1. Personal Donation-Based Crowdfunding
According to a report by Coherent Market Insights, the donation-based crowdfunding is estimated to add up to 42.6% market share in 2025. That said, donation-based crowdfunding is the most leveraged model of healthcare crowdfunding.
This is the most common form of healthcare crowdfunding, where individuals raise money to cover unexpected or unaffordable medical expenses. It relies on the goodwill of donors who contribute without expecting anything in return. You can explore platforms like TheCrowdCare and GoFundMe to raise donation-based funds.
In addition, this model works best for urgent, transparent needs and can be crucial in bridging gaps left by insurance or public healthcare.
2. Reward-Based Medical Campaigns
Reward-based healthcare crowdfunding offers backers a tangible item or service in exchange for their support. This is commonly used by startups and innovators in the health and wellness space to launch new products, such as fitness devices, apps, or supplements.
Donors support these campaigns not just out of goodwill, but to receive early access or limited-edition items. Platforms like Kickstarter and Indiegogo are key players in this space. It's an ideal model for entrepreneurs seeking market validation while also generating upfront capital.
3. Equity Crowdfunding for Healthcare Startups
Equity crowdfunding enables backers to invest in healthcare businesses in exchange for ownership shares. This model is particularly popular among biotech firms, medical device startups, and digital health platforms seeking growth capital.
Unlike donation or reward-based models, equity crowdfunding attracts investors anticipating long-term financial returns. Compliance with financial regulations is essential, and platforms like SeedInvest and Crowdcube facilitate these investments.
Notably, North America holds approximately 40% of the global equity crowdfunding market, driven by favorable regulations and a mature investor base. This form of crowdfunding not only raises funds but also builds a community of financially invested advocates.
4. Peer-to-Peer Medical Lending (Debt-Based)
Debt-based or peer-to-peer lending in healthcare enables individuals or clinics to borrow money with the promise of repayment plus interest. It serves as a credit alternative for people or providers who might not qualify for traditional loans.
This model is increasingly used by small clinics or healthcare providers for upgrades, equipment purchases, or service expansion.
While this route offers quicker access to funds, it carries the obligation of structured repayment, often making it suitable for stable income scenarios.
5. Community-Based Health Fundraising
This model focuses on collective efforts to solve healthcare issues at the community level, such as building clinics, supporting health workers, or funding public health campaigns. Often organized by NGOs or grassroots groups, it emphasizes inclusivity, local impact, and shared benefit.
Platforms such as TheCrowdCare support healthcare crowdfunding by providing you with a safer and reputable environment. This type of crowdfunding can create lasting infrastructure and change, especially in underserved or remote areas, by empowering communities to take health into their own hands.
6. Tokenized or Blockchain-Driven Crowdfunding
Using blockchain technology, tokenized crowdfunding introduces transparency and traceability into medical fundraising. Contributors receive digital tokens that represent utility within a platform or potential future value. This model is used for health tech ecosystems and global health solutions where trust and global participation are essential.
Leveraging blockchain-driven crowdfunding helps you secure funds, as blockchain crypto wallets are highly secure.
7. Subscription-Based Medical Support
In this model, donors subscribe to provide regular, ongoing contributions to a patient, clinic, or health cause. It offers predictable support for chronic conditions, long-term care, or continuous research efforts. We at CrowdCare offer three subscriptions for individuals, families, and people who are older than 55.
This approach builds sustainable funding, deepens donor relationships, and allows for steady updates and community growth. It’s ideal for long-term engagements and particularly powerful for causes with consistent, recurring needs.
What is the Biggest Challenge in Fundraising?
Fundraising in healthcare crowdfunding is one of the key aspects. Here are some of the biggest challenges faced in fundraising:
● Story Telling
Crafting a compelling narrative is vital in healthcare crowdfunding. Potential donors need to connect emotionally with the campaign, which means the story must be clear, authentic, and heartfelt. A strong personal story not only builds trust but also increases the likelihood of shares and donations across social media.
● Innovation
Healthcare campaigns must stand out in a crowded online space. Innovation in campaign design, messaging, or the healthcare solution itself can capture attention and support. Whether it's a unique fundraising goal or a novel treatment approach, creative thinking is key to success.
● Use of Technology
Leveraging digital tools like mobile apps, live updates, and multimedia can significantly enhance a campaign’s reach and effectiveness. But many individuals and organizations lack the technical know-how or resources to maximize these tools, limiting their fundraising potential.
● Collaboration
Crowdfunding success often depends on collective action. Collaborating with healthcare professionals, influencers, or patient advocacy groups can expand the campaign’s reach and credibility. However, finding the right partners and maintaining alignment can be challenging. At Crowdcare, we help you collaborate with other fundraisers and build connections.
What are the Different Types of Healthcare Financing Models?
1. The Beveridge Model
In this model, healthcare is provided and paid for by the government through taxes, just like public services such as libraries or schools. Most hospitals and clinics are government-owned, and doctors often work for the state. Patients typically don’t pay anything when they receive care. This system is used in countries like the United Kingdom.
2. The Bismarck Model
Here, healthcare is funded by insurance plans that both employers and employees pay into. These plans cover everyone, and healthcare providers are usually private. The government still plays a role by regulating costs and access. Countries like Germany and France follow this model.
3. The National Health Insurance Model
This system combines elements of both the Beveridge and Bismarck models. The government runs a single national insurance program that everyone pays into, but care is delivered by private providers. It reduces administrative costs while maintaining patient choice. Canada is a leading example.
4. The Out-of-Pocket Model
In this approach, there’s no government or organized insurance support. People pay directly for medical services out of their own pockets. It’s common in many low-income countries where access to care depends on what you can afford.
Final Verdict
We have discussed the seven types of healthcare crowdfunding to help you understand different aspects. Crowdfunding has different challenges as well for fundraising which you may encounter in your journey. At the end, we have explained healthcare financing models.