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Gofundme has been in the news for all the wrong reasons, with many people complaining about the platform's fees and lack of transparency. For example, a study found that Gofundme takes an average of 2.9% of the funds raised, plus a payment processing fee of 1.9%.
Many people have also complained about the platform's handling of donations, with some cases of funds being held up for weeks or even months. In one notable case, a fundraiser for a family who had lost their home in a fire was delayed due to a technical issue, causing the family to struggle to access the funds they needed.
Some users have also expressed frustration with the platform's communication, citing a lack of clear updates and information about their donations. For instance, a user reported that it took several days to receive a response from Gofundme's customer support team after inquiring about a delayed donation.
Gofundme's fees can add up quickly, especially for smaller fundraisers. In fact, a $1,000 donation would result in a fee of $29.90, leaving the recipient with just $970.
You might like: Gofundme Fees and Taxes
Gofundme Complaints
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GoFundMe Complaints are a common issue that many users face.
Consumers are mostly dissatisfied with GoFundMe, with a 1.6-star rating based on 490 customer reviews.
The rating distribution shows a clear pattern of dissatisfaction.
Many users have reported difficulty in getting a hold of customer service, with some even unable to get the money people have donated.
Some users have suggested boycotting GoFundMe altogether.
A common solution that users ask for is a refund.
Consumers are also unhappy with the price level of GoFundMe, considering it to be high.
Here are some of the common complaints users have about GoFundMe:
- Difficulty in getting a hold of customer service
- Unable to get the money people have donated
- High price level
- Difficulty in getting customer help
Cons and Issues
GoFundMe has received thousands of complaints from users, with many expressing frustration with the platform's customer support. Poor customer support is a common issue, with some users having trouble getting help via email or phone.
Some users have also reported issues with withdrawing funds, with some experiencing repeated requests for information and others having their funds held for an extended period. This has led to a low rating on the BBB website, with an average of 1.05 out of 5 stars based on over 525 ratings.
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Users have also complained about issues with GoFundMe's backend third-party payment processors, as well as donors erroneously leaving tips or signing up for recurring donations. These issues have resulted in a 2.3 out of 5 rating on Trustpilot, based on over 22,000 reviews.
Sales Transparency
GoFundMe's sales transparency could be improved. The site discloses its rules for campaigns, but they're not always easy to find.
GoFundMe's payment processing fee is 2.9% + $0.30 per donation, which is a common rate charged by online payment processors.
The site promises not to charge donors anything besides the payment processing fee. However, donors who opt for recurring donations will pay an extra 5% per donation.
GoFundMe's tipping option allows donors to contribute extra funds to the site, but it's entirely voluntary. Donors can choose to give zero as a tip and still make a donation.
Here's a breakdown of GoFundMe's fees and terms:
Nonprofit Fundraising
Nonprofit fundraising on GoFundMe is a unique beast. Contributions to nonprofit campaigns are processed through the PayPal Giving Fund, a 501(c)(3) public charity, making donations tax-deductible.
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Donors will receive a tax-deductible receipt after donating, and the Campaign Organizer doesn't even have to touch the money. This is a significant advantage for nonprofits, but it's essential to note that GoFundMe itself is not a nonprofit entity.
Donations to ordinary GoFundMe campaigns are not tax-deductible, unlike those to nonprofit campaigns. This is a crucial distinction that donors may overlook.
Negative Reviews
GoFundMe has thousands of online reviews, with a 2.3 out of 5 rating on Trustpilot based on 22,000+ reviews.
Many reviewers were dissatisfied with their fundraising experiences, citing issues with customer support, withdrawal of funds, and backend payment processors.
Some fundraisers reported repeated requests for information to withdraw their funds, which can be frustrating and time-consuming.
Donors have also complained about leaving tips or signing up for recurring donations by mistake.
Some users have even reported being unable to withdraw their funds at all, with one user stating that GoFundMe "sucks" and that they were unable to get a human being to talk to them.
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Here are some common complaints about GoFundMe:
- Issues with GoFundMe's backend third-party payment processors
- Repeated requests for information to withdraw funds
- Poor customer support
- Donors erroneously leaving a tip or signing up for recurring donations
These issues may be a concern for potential users, so it's essential to weigh the pros and cons before deciding to use GoFundMe for your fundraising needs.
User Experiences
GoFundMe has thousands of online reviews, but unfortunately, many of them are negative. The platform's ratings on Trustpilot, GetApp, and the BBB website vary significantly, with 2.3 out of 5 stars on Trustpilot based on 22,000+ reviews.
The most common complaints about GoFundMe include issues with their backend third-party payment processors, which can cause problems for fundraisers. Many users have reported repeated requests for information to withdraw funds, which can be frustrating.
Poor customer support is another major issue, with some users reporting difficulty in getting help when they need it. Donors have also complained about erroneously leaving a tip or signing up for recurring donations.
Here are some specific ratings to give you an idea of what users are saying about GoFundMe:
These ratings and reviews can help you decide if GoFundMe is the right platform for your fundraising needs.
Comparison to Alternatives
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If you're considering alternatives to GoFundMe, Kickstarter and Patreon are two prominent options for business funding.
Kickstarter and Patreon differ from GoFundMe in that they're specifically designed for creative projects and ongoing support, respectively.
Crowdfunding is a good way to raise business capital when you don't want to repay a loan.
However, crowdfunding takes time and energy to conduct successfully.
If you're looking for more accessible funding options, today's best business lenders offer loan products that are more accessible than those provided by the big banks.
Withdrawal and Refunds
GoFundMe has a zero tolerance policy for fraudulent behavior, and if it occurs, donors get refunded.
Donors who contributed to the alleged homeless scam campaign have been fully refunded, according to GoFundMe spokesman Bobby Whithorne.
We have a zero tolerance policy for fraudulent behavior, Whithorne said, adding that campaigns involving misuse make up less than one-tenth of one percent of all GoFundMe campaigns.
If fraud occurs, GoFundMe works with law enforcement officials to recover the money, Whithorne said.
The organization is cooperating fully with law enforcement in the case of the alleged homeless scam, Whithorne said.
Customer Service
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Customer Service is a major concern for many GoFundMe users.
Some users have reported dealing with frustrating automated systems that can't provide the help they need.
One user's experience was particularly bad, with a donated fund sitting idle due to poor customer service.
The lack of human support can be infuriating, especially for those who are already under stress, like someone dealing with a terminally ill family member.
It's unacceptable that some users have to deal with automated systems that can't be overridden to speak with a human representative.
Poor Customer Service
Poor customer service can be a major letdown, especially when you're trying to help others.
Frustration can come from dealing with automated systems that don't offer a human option.
In some cases, customers may feel like their money is being wasted because of poor service.
A person who donated money to a cause only to have it sit in a drawer because of poor service knows this feeling.
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It's even more unacceptable when you're trying to raise funds for a good cause, like helping a terminally ill sister.
Being charged a tip that most people don't even notice can add to the frustration.
Disgusting customer service can be a major turn-off, making you wonder if the company cares at all.
Need Help
If you're having trouble getting help from a company's customer service, you're not alone. Many people have reported being stuck in a loop with automated bots that can't provide the help they need.
Some companies have a review committee that can review your case and provide a solution, as one user experienced with GoFundMe.
You can try reaching out to a review committee, but be aware that this process can take time, and you may still face issues like delayed or missing funds.
If you're unable to withdraw funds from your account, it's a good idea to keep an eye on your emails for updates on when the funds will be returned to donors.
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In some cases, companies may not provide a clear explanation for why your account was removed, leaving you frustrated and unsure of what to do next.
Users have reported waiting over 5 days for their funds to arrive, only to have them delayed or go missing altogether, leading to feelings of anger and frustration.
Scams and Suspicious Activities
If you've been a victim of GoFundMe's nafarious activities, you're not alone. Many users have reported suspicious activities on the platform.
GoFundMe has been known to engage in questionable practices, such as charging users' credit cards without their consent. Check your credit card charges daily to catch any suspicious activity.
Boycotting GoFundMe is a viable option if you're concerned about their practices. Look for other options besides GoFundMe, like local fundraising alternatives.
Users have reported that GoFundMe's fees can add up quickly, making it a costly option for fundraisers. This is why it's essential to carefully review your credit card charges for any suspicious activity.
Checking your credit card charges daily can help you catch any unauthorized transactions, including those related to GoFundMe.
Frequently Asked Questions
How much of a cut does GoFundMe take from donations?
GoFundMe takes a 2.9% + $0.30 transaction fee from each donation, but donors can choose to add an optional contribution to help keep GoFundMe free for fundraisers.
Can someone take their donation back from GoFundMe?
Yes, donors can request a refund from GoFundMe in most cases, with some exceptions. Refund policies may vary, so it's best to review GoFundMe's terms and conditions for more information.
Why is GoFundMe not transferring money?
GoFundMe may not transfer money if additional information or documents are needed to verify your account or transfer. Check your 'Transfers' page for a red banner detailing the issue
Sources
- https://www.theatlantic.com/magazine/archive/2019/11/gofundme-nation/598369/
- https://www.merchantmaverick.com/reviews/gofundme-review/
- https://gofundme.pissedconsumer.com/review.html
- https://www.kron4.com/news/gofundme-says-donors-in-alleged-homeless-scam-refunded/
- https://gofundme.pissedconsumer.com/complaints/RT-P.html
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