
GoFundMe is a popular platform for raising funds for various causes, but is it really free to use? The answer is a bit more complicated than a simple yes or no.
GoFundMe charges a 2.9% payment processing fee on donations, which is deducted from the funds raised. This fee is clearly stated in the platform's terms of service.
You can create a GoFundMe campaign without paying a dime, but be aware that you'll still be charged this fee on every donation.
Donor Contributions Are Optional
Donor contributions are optional, which means you don't have to give money to start a fundraiser. This is a big part of what makes GoFundMe free.
GoFundMe doesn't charge a fee to start a fundraiser, which is a big difference from some other fundraising platforms. This means you can create a campaign without paying a dime.
Donor contributions help make it possible for GoFundMe to offer powerful and trusted fundraising tools, customer support, and a global team of Trust & Safety experts.
Fees and Charges
GoFundMe's platform fee is actually free to start or manage a fundraiser, so you don't have to worry about any upfront costs.
However, there is a small transaction fee per donation that covers all your fundraising needs.
This fee is 2.9% payment-processing fee on each donation, along with 30 cents for every donation.
For example, if a campaign raised $1,000 through 10 donations of $100 each, GoFundMe would collect about $32.
GoFundMe no longer charges a platform fee, so it's free for people to start a campaign.
The company asks donors to leave a tip after making a donation, which is optional.
GoFundMe encourages users to set goals higher than needed to account for the fees, so you can plan accordingly.
Calculate Fees
GoFundMe's platform fee is a small transaction fee per donation that covers all your fundraising needs.
There's no fee to start or manage your fundraiser, which is great news if you're just getting started.
This means that everything else goes directly to your cause, because that's what matters most.
To get a better understanding of the costs involved, GoFundMe offers a fee calculator on their website.
The calculator helps you estimate the costs associated with using GoFundMe for your fundraising campaign.
You can use this calculator to get a more accurate idea of what you'll be charged.
Recipient and Company
When creating a GoFundMe campaign, you'll need to specify the recipient and company information.
The recipient is the person or organization receiving the funds, and you can enter their name, email address, and a message.
The company field is for the organization or business receiving the funds, and it's not required to enter a company if the recipient is an individual.
You can also add a custom message to the recipient, which will be sent to them when they receive the funds.
Frequently Asked Questions
Is there something like GoFundMe that don't charge fees?
Yes, there is a free alternative to GoFundMe for nonprofits, called Zeffy, which offers 100% free fundraising with no fees. Learn more about Zeffy and its features.
Sources
- https://www.gofundme.com/c/pricing
- https://www.gofundme.com/c/blog/gofundme-fees
- https://www.azcentral.com/story/money/business/consumers/2023/09/25/gofundme-website-earns-profit-from-fundraising-heres-how-it-works/70866779007/
- https://smartfeecalculator.com/gofundme-fee-calculator
- https://www.azcentral.com/story/money/business/consumers/2017/11/14/gofundme-how-it-works-makes-money-pays-you-prevents-fraud/859211001/
Featured Images: pexels.com