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GoFundMe has revolutionized the way individuals and organizations raise funds for various causes and projects. Whether it’s for personal emergencies, medical expenses, or charitable initiatives, GoFundMe provides a convenient and user-friendly platform for fundraising. However, it’s essential to understand the fee structure associated with using GoFundMe. In this article, we will delve into GoFundMe’s fee structure to help you better comprehend the costs and benefits of using this platform.
Before diving into the specific fees, it’s important to note that GoFundMe operates on a model called “personal crowdfunding.” This means that individuals or organizations create a campaign, set a fundraising goal, and promote it to their network of friends, family, and beyond. GoFundMe charges fees based on different aspects of the campaign.
The first fee that GoFundMe implements is a platform fee. This fee covers the costs of operating and maintaining the platform, including customer support and the technology that powers the website. The platform fee is set at 2.9% of each donation received.
Another component of GoFundMe’s fee structure is the payment processing fee. This fee is charged by the third-party payment processor (such as Stripe or PayPal) that facilitates the secure transfer of funds from the donors to the campaign organizers. The payment processing fee is 2.2% of the donation amount, plus an additional $0.30 per transaction.
Combining the platform fee and the payment processing fee, the total fee charged on each donation is typically around 7.9% plus $0.30. For example, if someone donates $100 to a campaign, GoFundMe will deduct approximately $7.90, leaving the campaign organizer with $92.80.
GoFundMe also offers an optional feature called the “tip jar.” The tip jar allows donors to voluntarily contribute an extra amount to GoFundMe to support the platform’s operational costs. This is completely optional, and donors have the freedom to choose whether or not to add a tip.
It’s worth noting that GoFundMe’s fees are industry-standard for crowdfunding platforms. They provide a robust and secure platform that ensures funds are collected and transferred efficiently. Moreover, GoFundMe offers additional tools and resources to help campaigners maximize their campaigns’ potential, such as fundraising tips, social media integrations, and email marketing tools.
Furthermore, GoFundMe has a dedicated section on its website called “GoFundMe Charity” specifically designed for non-profit organizations. Campaign organizers utilizing GoFundMe Charity benefit from a different fee structure. Instead of the standard platform and processing fees, GoFundMe Charity implements a 0% platform fee. However, the payment processing fee remains the same at 2.2% plus $0.30 per transaction.
In summary, GoFundMe offers a transparent fee structure for individuals and organizations looking to raise funds for various causes. With a platform fee of 2.9% and a payment processing fee of 2.2% plus $0.30 per transaction, the total fee is typically around 7.9% plus $0.30. These fees are industry-standard for crowdfunding platforms and cover the operational costs of the platform. Additionally, GoFundMe Charity provides non-profit organizations with a 0% platform fee, while maintaining the same payment processing fees.
Using GoFundMe offers individuals and organizations an efficient and user-friendly way to raise funds. Understanding the fee structure is crucial to ensure transparency and to make informed decisions when utilizing this powerful platform.
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