It really doesn't matter, but it's just different lol
.rar? I haven't seen anyone use that sort of zipping in a while
How much are you trying to fund?
"We've heard it works very well with emulators such as Dolphin or Project64 too, but we wouldn’t dare try it ourselves, as roms are illegal."
Roms are not illegal to have* (depending on how you get them) but are illegal to distribute. You can legally obtain roms via dumping a personal cart.