Is crowdfunding legal in New Zealand?
Yes. Donation crowdfunding is legal as long as the appeal is honest and the money is used as described. Equity crowdfunding must go through a licensed provider.
Fundraising guide
What is crowdfunding? A New Zealand guide
Crowdfunding means raising money from lots of people, usually online, with each person giving a small amount. In New Zealand the most common kind is donation crowdfunding, where people give to help someone without getting anything back.
Written and reviewed by the Good Cause team at Webfit Solutions Limited · Updated 29 September 2026 · About Good Cause
The three main types
Donation crowdfunding: people give to a person, family or cause and expect nothing in return. This is what Good Cause does.
Reward crowdfunding: backers get something in return, such as an early copy of a product.
Equity crowdfunding: investors buy shares in a company. In New Zealand this is regulated and only offered through licensed platforms.
How donation crowdfunding works
You create a page explaining the cause and the target, it is checked, you share it, supporters donate by card, and the money is paid to a verified bank account. On Good Cause the cause receives 97.5% of every donation.
Is crowdfunding the same as fundraising?
Crowdfunding is one form of fundraising. Fundraising also includes events, raffles, grants and sponsorship. Many causes combine an online page with local events.
Start your fundraiser
Free to start. Reviewed by a person. The cause receives 97.5% of every donation.
Common questions
Do I pay tax on money raised through crowdfunding?
Genuine gifts to an individual are generally not taxable income, but business or commercial fundraising may be. Check with Inland Revenue or an accountant if you are unsure.
Related guides
- How to raise money online in New Zealand
- Online fundraising fees in New Zealand compared
- Looking for a Givealittle alternative?
This guide is general information, not legal, tax or financial advice.