How Much Does GoFundMe Charge

In recent years, GoFundMe has become a popular platform for individuals and organizations to raise money for various causes and projects. Whether it’s a personal emergency, medical expenses, or a creative endeavor, GoFundMe provides an avenue for people to seek financial assistance from friends, family, and strangers alike. However, many people wonder: how much does GoFundMe charge?

GoFundMe operates on a unique funding model that differs from traditional crowdfunding platforms. Unlike other platforms, GoFundMe does not charge upfront fees to start a campaign. This makes it an accessible option for individuals who may not have the financial means to pay for these services initially.

So, how does GoFundMe generate revenue? The platform makes money through a small fee charged on each donation received. While the service itself is free to use, GoFundMe charges a percentage-based processing fee on each donation. This fee helps cover the costs associated with processing transactions, providing customer support, and maintaining the platform.

Currently, GoFundMe charges a standard fee of 2.9% plus $0.30 per donation. For example, if someone donates $100 to a campaign, GoFundMe will deduct a fee of $3.20 ($2.90 + $0.30) from the donation. This means that the campaign organizer will receive $96.80.

It’s important to note that the processing fee is only applicable to donations made by individuals based in the United States. For international campaigns, GoFundMe charges a 2.9% payment processing fee plus an additional 1.2% currency exchange fee. These fees help cover the costs associated with facilitating cross-border transactions.

Additionally, GoFundMe offers a service called “Tips.” While not mandatory, donors have the option to leave an additional tip to help support GoFundMe’s operations. These tips are entirely optional and are not deducted from the donation or charged to the campaign organizer. They are a way for donors to contribute to GoFundMe’s mission of providing assistance to individuals and communities in need.

One commonly asked question is whether campaign organizers can choose to absorb the transaction fees themselves. GoFundMe does offer an option for campaign organizers to pay the fees on behalf of the donors. This means that the entire donation amount will be deposited into the campaign organizer’s account, and the fees will be deducted separately.

While some individuals appreciate this option, others may consider it unfair to expect the campaign organizer to cover these costs. It ultimately depends on the circumstances and the preferences of the campaign organizer.

In addition to the processing fees, GoFundMe has also introduced a new subscription-based service called “GoFundMe Charity.” GoFundMe Charity is designed for larger organizations and nonprofits that require additional features and tools to support their fundraising efforts. The fees for this service vary based on the organization’s specific needs and requirements.

In conclusion, GoFundMe charges a 2.9% plus $0.30 processing fee on each donation received through its platform. These fees help cover the costs associated with processing transactions, providing support, and maintaining the platform. While these fees apply predominantly to campaigns within the United States, international campaigns incur additional charges. Donors also have the option to leave optional tips to support GoFundMe’s mission. By understanding the fee structure, individuals and organizations can make informed decisions when utilizing GoFundMe to raise funds for their causes.