What is GoFundMe?
GoFundMe is a crowdfunding platform that allows people to raise money for different causes and events. Its mission is to encourage people to take action. If someone wants to support a cause he is passionate about, GoFundMe tries to make it as easy as possible for those who need help. If you want to compare GoFundMe with other crowdfunding platforms, for example, with Indiegogo, check this article.
Nowadays GoFundMe claims that their community has more than 50 million people, who fundraise for what matters. Because of their tipping model, they put the power of crowdfunding in the hands of their website’s donors. So, if you want to know more about GoFundMe fees and payments, read this article.
Types of crowdfunding platform fees
What’s the difference between a platform fee and a payment processing fee? To clear this up, here we shall explain the most common fees on crowdfunding platforms and go deeper into GoFundMe types of fees.
Crowdfunding platforms have fees, that sometimes can be referred to as fundraiser fees. These are what crowdfunding sites charge to cover their operating expenses. To pay salaries to their employees, most crowdfunding organizations need to charge a fee per each donation received. These fees can start from 2% and reach 8% per donation, depending on the certain crowdfunding platform. Most fees are charged directly from the donations, and the organizer of the fundraising campaign receives the remaining sum.
However, GoFundMe claims that its service has a 0% platform fee. GoFundMe relies on donors to develop the platform. So, when donors choose to give GoFundMe tips as they make a donation, they allow service to maintain and improve this free platform.
The payment processing fee
Nevertheless, payment processing fees are unavoidable on any of the crowdfunding websites. This happens because every purchase or money transfer needs to be securely processed and verified by a third party payment processor.
At GoFundMe there is a fee of 2.9% plus $0.30 fee per donation. These fees go directly to the payment processor of GoFundMe.
How does GoFundMe make money?
Lots of people visit GoFundMe website searching for help for individuals, families, and entire communities to reach their fundraising goals.So, these people can leave tips in any amount they like to help cover operating expenses, but they are not obliged to do it.
GoFundme promotes that without a platform fee, even more people can find the help they need to overcome hardships, support causes they’re passionate about, and take action.
GoFundMe is giving back
Removing the platform fees is just one-way GoFundMe supports positive changes in communities worldwide. Giving back is promoted as one of the core values at GoFundMe. GoFundMe also tends to foster a sense of community that extends beyond the platform. They promote quarterly volunteer events for volunteers to make a difference at different levels and help people to get extra help.
To sum up:
GoFundMe has 0% Platform Fee
GoFundMe has a 0% platform fee for fundraiser campaigns started in US, Canadian, Australian and British currencies. However, there is still a standard transaction fee to cover credit card processing and the safe transfer of funds.
For all people who fundraise, transaction fees applied depending on the country that the fundraising campaign was created in. You can check the fees by country on their website.