GoFundMe has quickly become one of the most popular online fundraising platforms globally. Since its inception in 2010, more than $5 billion has been raised on its website to assist individuals in paying medical bills, purchasing their dream wedding gowns, and even raising funds for business projects.
This article provides a comprehensive overview of how GoFundMe works, including fees, pricing, and complaints.
What is GoFundMe?
GoFundMe claims to be the world’s largest social fundraising platform. It stands to be the middle ground for increasing human support and social media virality, with over $5 billion raised from over 150 million donors. Because it does not use an incentive-based model, the San Diego-based company is distinct from other crowdfunding platforms. The mission of GoFundMe is to help people help others and create a world in which willing people can assist in meeting everyone’s needs. You can either create a personal campaign or a charity-based campaign on GoFundMe, and these options have different fees.
What Services Does GoFundMe Offer?
GoFundMe provides a wide range of services for people looking to crowdfund for various reasons and who want to raise funds from friends, family, and anyone moved by their campaign. Users can create a campaign for any of the following purposes after signing up:
Even though most of the purposes listed here are need-based, businesses can use the platform to raise funds for their projects. In addition, for your campaign to be featured on the site, it must adhere to the GoFundMe terms of service.
GoFundMe Pricing and Fees
You do not need to set a funding period when using GoFundMe to solicit funds for a campaign. You must select a funding goal that you will meet in full, no matter how large or small. Another exciting feature is that you can keep your campaign running even after you have reached its goal. GoFundMe does not charge anything other than payment processing fees. The following are some answers to frequently asked questions about GoFundMe fees:
- Are there crowdfunding platform fees?
There are no fees for organizing and managing a fundraising campaign in the United States, but there is a small transaction fee per donation. GoFundMe accepts voluntary contributions, and that’s how it makes its money. Any money made from your campaign only goes towards your cause.
- How much is the transaction fee?
A transaction fee is deducted automatically from a donation. GoFundMe charges a transaction fee of 2.9% plus $0.03 for individuals or businesses and 2.2% plus $0.03 for charities. The transaction fee covers debit and credit card charges. On GoFundMe, the only fee deducted to cover your fundraising needs is the transaction fee.
Setting up a GoFundMe Campaign
In general, the GoFundMe application process is straightforward. All you have to do is enter your campaign details and tell your story through pictures or videos. You must also set your fundraising goal and the reward levels you wish to offer before your campaign can go live.
However, GoFundMe repeatedly asks users to connect their campaign to their Facebook page. You must sign up using your Facebook account if you want your campaign to appear in their Public Search Directory.
GoFundMe Customer Service
When you visit GoFundMe’s website, you’ll notice that there isn’t a phone number to call for immediate assistance, but it does have a contact form for contacting customer service. However, the company promises to respond to users’ queries in five minutes or less, faster than its competitors. Another disadvantage of its customer service is the lack of a live chat feature where users can quickly get answers to their questions. Aside from that, the site’s help center page answers some basic questions about the GoFundMe service.
Users of GoFundMe have filed a number of complaints with the company. One of them is that GoFundMe requires users to provide their social security number before withdrawing the funds they have raised. Given the number of daily data breaches that target personal information, this presents a significant concern.
Another issue is the number of complaints from users who claim they cannot withdraw funds raised on GoFundMe. When users request a withdrawal of their funds, GoFundMe responds with multiple requests for more information, and there’s been reports of customer service not resolving these issues despite people sending emails requesting assistance. Other users have complained about WePay, GoFundMe’s payment processor.
The consistent scams that users encounter on the platform are another common complaint. However, this is a complex problem as GoFundMe can’t do much to verify the legitimacy of each campaign. Your fundraising campaign will go live if it does not violate the rules. While these issues continue to plague the platform, and are partially born out of its massive popularity, GoFundMe has yet to find a solution, and people continue to face these difficulties when using the platform.
However, the company has received plenty of positive feedback, with users praising it for its zero-incentive policy, which allows users to keep the total amount received from their campaigns. Others praise the company for its social media integration and ease of use.
GoFundMe is on a mission to help people help others, and it has provided invaluable assistance to people in need in the nineteen countries where it is available. Although many GoFundMe campaigns are medical, business owners can also use this platform to raise funds for their projects. One feature that distinguishes GoFundMe from its competitors is its zero-incentive pricing model, which allows users to withdraw the entire amount raised on the platform while only paying a single transaction fee per donation.
With several complaints about the platform, including users being unable to withdraw funds and issues with the processor, GoFundMe needs to find a way to deal with these issues so that users who need access to these funds can do so without any problems or delays. Overall, GoFundMe is a valuable platform that aids in the saving of lives.