Understanding GoFundMe's Fee Structure
GoFundMe has become one of the most popular crowdfunding platforms, helping raise billions of dollars for various causes worldwide since 2010. The platform enables fundraising for everything from life events and celebrations to accidents and illnesses.
Platform Fees
GoFundMe has eliminated its platform fee for personal campaigns in most major countries, including:
- United States
- Canada
- Australia
- United Kingdom
- Most European countries
Payment Processing Fees
While the platform itself is free, payment processing fees still apply:
- United States: 2.9% + $0.30 per donation
- Canada: 2.9% + $0.30 CAD per donation
- United Kingdom: 2.9% + £0.25 per donation
- Australia: 2.9% + $0.30 AUD per donation
Example Calculation
For a $100 donation:
- Processing Fee: 2.9% of $100 = $2.90
- Transaction Fee: $0.30
- Total Fees: $3.20
- Net Donation: $96.80
Optional Tipping System
GoFundMe operates on a voluntary tip-based model:
When making a donation, supporters have the option to leave a tip to help keep GoFundMe running and free for organizers.
Tips are:
- Completely optional
- Separate from the donation amount
- Used to maintain the platform's services
Additional Features and Considerations
Currency Conversion
When donations involve different currencies, additional fees may apply:
| Currency Conversion Type | Fee Range |
|---|---|
| Standard conversion | 2-5% |
| Bank conversion | Varies by institution |
Withdrawal Options
Direct Deposit
- Processing time: 2-5 business days
- No additional fees
- Available in most countries
PayPal
- Processing time: 2-3 business days
- Subject to PayPal's own fee structure
- Available in select regions
Protection and Security
GoFundMe offers the GoFundMe Guarantee, which protects:
- Donors against misuse of funds
- Campaign organizers in cases of unauthorized withdrawals
Best Practices for Campaign Organizers
To maximize fundraising effectiveness:
- Set realistic goals that account for processing fees
- Be transparent with potential donors about the fee structure
- Consider suggesting slightly higher donations to offset fees
- Provide regular updates to donors
- Maintain accurate financial records
- Comply with local fundraising regulations
Tax Considerations
Important tax-related information:
- Personal donations are typically not tax-deductible
- Charitable organizations must be verified through GoFundMe's charity verification process
- Campaign organizers may need to report large donations to tax authorities
For more detailed information about fees and charges, visit the official GoFundMe website or check their pricing page.