To know how does GoFundMe work, we should begin with clarifying what is GoFundMe website.
What is GoFundMe?
GoFundMe is a fundraising platform created to help individuals or communities to deal with the financial aspects of their issues. GoFundMe is a place where you can get support for your cause by asking for it.
The platform was launched ten years ago, and to this day, it has raised over 5 billion dollars. GoFundMe claims that every day about 10,000 people start new campaigns on their website.
These numbers speak in favour of GoFundMe’s popularity, unlike other crowdfunding and fundraising platforms, GoFundMe fees are comparatively low and do not include a portion of the money raised. So how does GoFundMe work? If you’re thinking about launching a GoFundMe campaign, here’s everything you need to know.
How does GoFundMe work?
GoFundMe is not an all-or-nothing crowdfunding and fundraising site, that means, you are going to get your gathered donations whether you reached your project’s goal or not. And this is one of the things that make this platform so appealing. Whereas on some other crowdfunding sites you have to reach your goal in order to unlock the funding, on GoFundMe, you’ll receive whatever money is donated anyway. It’s good to know that even if a campaign fails, the fundraiser will still get some help.
A GoFundMe campaign is relatively easy to create. You should sign up for an account with your Facebook account or an email address, then, you’ll set a goal and start filling in details about the campaign. For example, why the campaign is needed, how you will use the money, etc. From there, it’s only a matter of promoting your cause and following up with your supporters. When your campaign is finished, you can request to receive your funds from GoFundMe via bank order or check.
Speaking about fees, GoFundMe has one of the lowest ones. The platform doesn’t take a percentage from individual campaigns, instead of it charging a 2.9 % payment processing fee and $0.30 per every donation. You can read more about GoFundMe fees in this article.
GoFundMe can be used to fund almost anything, including charity causes. However, there are some exceptions. You can’t use GoFundMe to pay anything that actively violates the law or to bully people. Funding drugs is also prohibited, even if they’re legal in your area.
Restrictions also include gambling and weapons. Money management services are also banned on this platform. The projects that promote prejudice towards any sexual orientation or race also would be shut down.
In Fact, the only danger of using GoFundMe is the possibility that you’ll get scammed. Sometimes there are reports of GoFundMe scams.
GoFundMe doesn’t initially check the campaigns hosted on its site. Instead of it, GoFundMe relies on an honor system, which means that users should check the legitimacy of campaigns themselves. One of the methods is to seize existing pictures and stories and direct donations to their scammers’ sites. Others simply create fake sympathy campaigns. There have been dozens of instances where people have tried to raise money for a cause they actually have no relation to.
To protect yourself, stick to accounts verified by the GoFundMe. If you are suspicious about an account, contact the campaign organizer or contact GoFundMe directly.
Are funds guaranteed?
GoFundMe guarantees funds raised transfer to the victims and their families.
If an organization or a user finds campaigns are misused, donors are fully protected and will receive a refund. If a campaign organizer does not deliver funds to the intended recipient, GoFundMe will donate the undelivered amount to the right person.
How do I donate?
GoFundMe only accepts payments through credit and debit cards. So you better prepare one.
To Sum Up:
GoFundMe is one of the best places to fundraise, whether you are an individual, group, or organization. Now you know how it works, so it is easier to trust it.