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Treasured Social Butterfly
Posts: 19,486
Registered: ‎12-25-2011

Re: GoFundMe - How Does it Work?

Message 1 of 6 (1,365 Views)

@ConcernedGrandMa - I guess you didn't see my update after the initial post:

 

For the U.S. and Canada, 7.9% of every donation comes off the top for GoFundMe, for their services, plus an additional $.30/donation. So that means if someone makes a $1,000 donation, $79.30 goes to GoFundMe, and the recipients of the account get the remaining $920.70. If 20 people make $50 donations each (a raw total donation of the same $1,000), the same $79 goes to GoFundMe, but there's $6 for the 20 individual donation, leaving $915 going to the account recipients.

 

Even more interesting, is that if a charity thinks it can make more money by using GoFundMe, GFM takes even more off the top .. a total of 9.25%!

 


Registered on Online Community since 2007!
Bronze Conversationalist
Posts: 21
Registered: ‎02-11-2012

Re: GoFundMe - How Does it Work?

Message 2 of 6 (1,368 Views)

From what i read on the site help, yes you have to pay taxes cause the government considers it income and you they gotten have their hands in everything. Also the GoFund does take a percentage of what is earned from the request. Nothing is free in this country, there is always a few. Hope this answers your question. If you have more questions just go to the site and read their help section that explains all about the site.

Trusted Social Butterfly
Posts: 7,094
Registered: ‎02-14-2008

Re: GoFundMe - How Does it Work?

Message 3 of 6 (1,675 Views)

"....I was kind of shocked that no one responded to this question. Surely everyone's heard of GoFundMe, and maybe even heard or read about local cases of accounts being set up for families that suffered some devestating tragedy....".

 

I know about them, but have never participated or looked at how it works. We did have an in-law that set up an account. Like you, we didn't go through the site, just sent them a check.

   I'm wary (perhaps, just too cynical) of these kinds of sites. If my circumstances were different, I might have an interest.


Just think. The world was built by the lowest bidder.
Valued Social Butterfly
Posts: 8,624
Registered: ‎08-18-2008

Re: GoFundMe - How Does it Work?

Message 4 of 6 (1,690 Views)

@ASTRAEA

It seems to be more of a matter of convenience, at least speaking about individual needs.  I agree with you that a sanctioned (tax empted) charity has no place on GoFundMe but they might find that this cost is close to what they might spend on fund raising of their own.

 

For individual needs, I do not remember banks charging anything for accounts that were set up for a specific individual need; the way we use to handle these things.    It was kind of like a shared community benefit.  However, these were for more of a close community rather than donations solicited around the state or even country.

 

I still only give to GoFundMe accounts when I have seen local news coverage of something or someone I want to give to and I guess this site fee which GoFundMe charges is no different than an orgination fee needed for their overhead cost including their payment method cost among other things.

GoFundMe isn't a charitable organization, I don't believe.

 

 

 

 

 

Treasured Social Butterfly
Posts: 19,486
Registered: ‎12-25-2011

Re: GoFundMe - How Does it Work?

Message 5 of 6 (1,697 Views)

I was kind of shocked that no one responded to this question. Surely everyone's heard of GoFundMe, and maybe even heard or read about local cases of accounts being set up for families that suffered some devestating tragedy.

 

I checked it out myself .. should anyone be solicited for a GoFundMe account, when they do know that the cause itself is worthy. From their official website, this is about "Fees & Pricing":

 

For the U.S. and Canada, 7.9% of every donation comes off the top for GoFundMe, for their services, plus an additional $.30/donation. So that means if someone makes a $1,000 donation, $79.30 goes to GoFundMe, and the recipients of the account get the remaining $920.70. If 20 people make $50 donations each (a raw total donation of the same $1,000), the same $79 goes to GoFundMe, but there's $6 for the 20 individual donation, leaving $915 going to the account recipients.

 

Even more interesting, is that if a charity thinks it can make more money by using GoFundMe, GFM takes even more off the top .. a total of 9.25%!

 

GoFundMe Pricing & Fees

I'd rather send a check or get a money order, so that the needy recipient get the full value of my contribution.


Registered on Online Community since 2007!
Treasured Social Butterfly
Posts: 19,486
Registered: ‎12-25-2011

GoFundMe - How Does it Work?

Message 6 of 6 (1,826 Views)

I've seen it used by family friends, when there's been a loss or other crisis .. it doesn't seem the right time to ask caring family members a lot of questions, but I'm curious as to how it works .. as compared to sending the people a personal check.

 

- Do the recipients get a list of the donors & the amounts given?

- Is that taxable income, or for any individual contributions that are above the current $14K annual IRS exclusion?

- Does GoFundMe "take a cut" of the donations made? I know that many non-profits that use a 3rd party collection service, to allow people to donate by credit card online, indicate that the collection service charges around a 3 to 6% fee .. which the recipients wouldn't lose if they received a check instead.


Registered on Online Community since 2007!