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How Does Gofundme Make Their Money

Written By Saturday, November 13, 2021 Add Comment Edit

American crowdfunding platform

GoFundMe
GoFundMe logo.svg

Type of site

 Crowdfunding
Available in English
Headquarters

Redwood City, California

,

United States
Owner GoFundMe, Inc.
Created by Brad Damphousse
Andrew Ballester
URL www.gofundme.com
Launched May 10, 2010; 11 years ago  (2010-05-10)
Current status Active

GoFundMe is an American for-profit crowdfunding platform that allows people to raise money for events ranging from life events such as celebrations and graduations to challenging circumstances like accidents and illnesses.[1] [2] From 2010 to the beginning of 2020, over $9 billion has been raised on the platform, with contributions from over 120 million donors.[3]

For personal campaigns in the US, Canada, the United Kingdom, Australia, France, Germany, Ireland, Italy, the Netherlands, and Spain, GoFundMe is a free platform.[4] [ clarification needed ]

The company is based in Redwood City, California, with offices in San Diego and Dublin, and with operations in France, Spain, Germany, Italy and the United Kingdom.

History [edit]

The company was founded in May 2010 by Brad Damphousse and Andrew Ballester. Both had previously founded Paygr, which is a website dedicated to allowing members to sell their services to the public.[5] Damphousse and Ballester originally created the website under the name "CreateAFund" in 2008 but later changed the name to GoFundMe after making numerous upgrades to the features of the website.[6] [7] GoFundMe was founded in San Diego, California.[8]

In March 2017 GoFundMe became the biggest crowdfunding platform, responsible for raising over $3 billion since its debut in 2010. The company receives over $140 million in donations per month and made 2016 $100 million in revenue.[9] In June 2015, it was announced that Damphousse and Ballester had agreed to sell a majority stake in GoFundMe to Accel Partners and Technology Crossover Ventures. Damphousse and Ballester stepped down from the day-to-day oversight of the company. The deal valued GoFundMe at around $600 million.[10] In January 2017, GoFundMe acquired CrowdRise.[11] GoFundMe's CEO is Tim Cadogan.[12] Ballester remains on the board of directors and holds an undisclosed stake in the company.[13]

Business model [edit]

GoFundMe allows users to create a website with which they raise money.[1] During this process, members can describe their fundraising cause and the amount they hope to raise, and upload photos or video.[14] Once the website is created, GoFundMe allows users to share their project with people through integrated social network links (Facebook, Twitter, etc.) and email. People can then donate to a user's cause through the website using a debit card or credit card[15] and track the funding. Those who donate can also leave comments on the website. If the user receives no donations, then no charge is made.[16] Payment processors collect 2.9% and $0.30 from each GoFundMe transaction.[17]

GoFundMe is unique to crowdfunding in that the company is not an incentive-based crowdfunding website. Although it does allow projects that are meant to fund other projects for musicians, inventors, etc., the business model is set up to allow for donations to personal causes and life events such as medical bills.[18] [19] [20] GoFundMe also has a special section dedicated solely to users who are trying to raise money to cover their tuition costs.[1] A prominen tuition project helped a user raise $25,000 for an out-of-state tuition to a PhD program.[21] A 2014 tuition project raised over $100,000 for a homeless highschool Valedictorian to attend college and help his family [22]

GoFundMe targets social media platforms to create awareness for campaigns, and encourages individual users to promote their fundraiser on social media throughout a campaign. According to a 2018 report by GoFundMe based on past campaign data, a donor sharing a campaign on social media results in $15 of donations on average, while any share of a campaign on social media, regardless of whether the user donated to the campaign, results in $13 of donations on average.[23]

In 2015, GoFundMe announced that the site would no longer support legal defense funds on their platform, after the site suspended funding for the defense of Sweet Cakes by Melissa, a bakery that was fined for refusing to bake a cake for a same-sex wedding.[24] As of November 2017[update] GoFundMe's terms and conditions allow for campaigns for certain kinds of legal defense.[25]

In November 2017, GoFundMe announced that it will no longer charge a 5% fee per donation for US, Canada, and UK individual campaigns, and instead rely upon tips left by donors to support the website.[4] The processing fee for online credit card payments will still apply to donations.[26]

In June 2019 GoFundMe terminated a $3 million fund raising for an Australian rugby player, Israel Folau, to finance a court case to appeal his multi-million dollar dismissal. He had quoted on social media, 1 Corinthians 6:9-10, which was said to be homophobic.[27] An alternative fundraising site was set up by the Australian Christian Lobby with the public donating $2 million in 24 hours.[28]

Employment [edit]

GoFundMe has received several awards including Best Workplace in the Bay Area 2017 and Best Medium Workplace in 2016. GoFundMe has a notable give-back program where employees pick a campaign that inspires them. GoFundMe then donates $1000 to that campaign. In 2015, GoFundMe gave back more than $500,000. GoFundMe employees receive $600 a year for a wellness program benefit. This money can be used for gym memberships, gym equipment, spas, and dietary needs. GoFundMe matches 401k contributions up to six percent. GoFundMe has designed their office with open floor plans to build a collaborative work environment.[29]

Medical fundraising [edit]

GoFundMe has describes themselves as the "leader in online medical fundraising".[30] One in three campaigns is intended to raise funds for medical costs, with about 250,000 campaigns for a total of $650 million in contributions each year.[30] [31] This is attributed, in part, to failures in the United States healthcare system in which GoFundMe is used to bridge the gap.[30] [32]

Rob Solomon (CEO) has commented on this, saying that "When we started in 2010, it wasn't purposefully set up and built to be a substitute for medical insurance. We weren't ever set up to be a health care company and we still are not. But over time, people have used GoFundMe for the most important issues they are faced with."[31] He also adds that the large medical fundraising is the result of severe problems in the healthcare system in the United States, saying "The system is terrible [...] there are people who are not getting relief from us or from the institutions that are supposed to be there. We shouldn't be the solution to a complex set of systemic problems."[33] [34]

Notable projects [edit]

Official George Floyd Memorial Fund [edit]

After the murder of George Floyd, his brother Philonise Floyd established the fund "to cover funeral and burial expenses, mental and grief counseling, lodging and travel for all court proceedings, and to assist our family in the days to come as we continue to seek justice for George. A portion of these funds will also go to the Estate of George Floyd for the benefit and care of his children and their educational fund." One week after the tragedy and only four days after the start of the fund, it had already raised $7 million, putting it in ranking as one of the most highly funded GoFundMe campaigns to date.[35]

The $1K Project [edit]

Created by entrepreneurs and investors Alex Iskold and Minda Brusse in response to the novel coronavirus pandemic, The $1K Project uses individual GoFundMe pages to match specific donors with specific families who have been adversely affected by the pandemic. Donors agree to contribute a minimum of $1,000 per month for three months, for a total of $3,000 per family. Small-dollar donors can make contributions that are pooled together and then matched to a family. In August 2020, Andrew Yang's Humanity Forward Foundation committed to matching donations, dollar-for-dollar, up to $1,000,000. As of mid-October 2020, more than 800 families had been fully funded.[36] [37]

Help Chelsea Manning Pay Her Court Fines [edit]

Created by Kelly Wright to raise money to help former intelligence analyst and whistleblower Chelsea Manning pay $256,000 in court fines levied against her after her refusal to testify to a grand jury about WikiLeaks founder Julian Assange. Nearly 7,000 contributions ranging from $5–$10,000 were made within two days.[38]

We The People Built the Wall! [edit]

Created with the goal of building a wall as private citizens to inhibit illegal entry along the U.S.-Mexico border.[39] The founder, Brian Kolfage has since started a non-profit with the money, We Build The Wall, which has constructed sections of the wall.[40] Currently most money raised on GoFundMe.

Stoneman Douglas Victims' Fund [edit]

This official Stoneman Douglas High School Shooting fundraiser was created by Broward Education Foundation to help the victims' families, survivors and those impacted by the horrific tragedy on February 14, 2018 in Parkland, Florida. GoFundMe waived its platform fees and donated $50,000 towards the campaign.[ citation needed ]

Paying it Forward [edit]

This fundraiser was created by Kate McClure, Mark D'Amico, and Johnny Bobbitt Jr., in order to swindle people. Their fictitious story was that Bobbitt, a homeless veteran, spent his last $20 to assist McClure on the highway when her car ran out of the gasoline. Widely reported in the US and internationally, it exceeded its goal by 4000% but when they began publicly squabbling for the money, an investigation was launched and all three were arrested and charged with theft by deception.[41] [42] [43] [44] [45] [46]

Las Vegas Victims' Fund [edit]

This fundraiser was created by Steve Sisolak of the Clark County Commission to help the victims of a mass shooting from the Las Vegas Strip in Paradise, Nevada.[ citation needed ]

Support Victims of Pulse Shooting [edit]

This fundraiser was created by Equality Florida to help the victims of a nightclub shooting in Orlando, Florida.[47] [48] Over 90,000 people have contributed to this campaign. GoFundMe headquarters donated $100,000 and waived every transaction fee for this campaign.[49]

MMS Defense Fund [edit]

Nominally a legal defense fund for Louis Daniel Smith, who faced criminal charges in relation to him selling "MMS" (Miracle Mineral Supplement). On May 27, 2015, Smith was found guilty of fraud and other charges.[50] On May 31, 2015, the mmsdefensefund was removed from GoFundMe (an archived copy is available).[51]

Bucks fo Bauman [edit]

This project was created for Jeff Bauman after he lost both legs during the Boston Marathon bombing.[52] [53]

Celeste & Sydney Recovery Fund [edit]

Celeste and Sydney Corcoran were both victims of the Boston Marathon bombing. Sydney suffered severe injuries as a result of being hit with shrapnel, and Celeste lost both legs below her knees. This campaign page was created for their ongoing rehabilitation.[54] [55]

List of Projects [edit]

Unless otherwise stated, the following amounts are in US dollars. Days raised is the number of days between Date raised and As of.

Project Amount raised Target amount Success rate As of Date raised Days raised Status
Official George Floyd Memorial Fund $14,595,200 $1,500,000 973.01% July 10, 2020 May 28, 2020 Active
Help the Anwars Find Peace[56] $1,051,250 April 1, 2021 March 24, 2021 Active
The $1K Project[57] [58] $2,500,000 October 14, 2020 April 9, 2020 Active
Help Chelsea Manning Pay Her Court Fines[38] $267,000 $256,000 104.30% March 14, 2020 March 12, 2020 2 Terminated
Coronavirus, rafforziamo la terapia intensiva[59] [60] €3,800,000 €200,000 1,900.00% March 12, 2020 March 9, 2020 3 Terminated
Help KyoAni Heal[61] $2,369,520 $750,000 315.94% August 1, 2019 July 18, 2019 14 Terminated
We The People BUILT the Wall![62] $25,462,400 $1,000,000,000 2.50% February 26, 2020 December 16, 2018 215 Terminated
Children Lost Both Parents In Wreck[ citation needed ] $500,075 $7,000 7,142.86% May 31, 2020 November 3, 2015 0 Active
Support for FBI Veteran Pete Strzok[63] $448,357 $500,000 89.67% January 17, 2019 August 13, 2018 157 Active
Funds for Humboldt Broncos[64] $11,163,623 April 19, 2018 April 19, 2018 0 Unknown
March for Our Lives[65] $3,531,110 April 12, 2018 February 18, 2018 53 Unknown
Stoneman Douglas Victims' Fund[ citation needed ] $10,009,300 $10,000,000 100.09% June 30, 2018 February 15, 2018 135 Terminated
TIME'S UP[ citation needed ] $24,206,200 $24,500,000 98.80% February 26, 2020 December 20, 2017 394 Unknown
William Osman's Fire Relief[ citation needed ] $172,471 $10,000 1,724.71% June 17, 2018 December 5, 2017 194 Unknown
Paying it Forward[66] [67] [68] [44] [45] [46] $402,826 November 10, 2017 Unknown
LAS VEGAS VICTIMS' FUND[ citation needed ] $11,874,100 $15,000,000 79.16% April 12, 2018 October 2, 2017 192 Active
Students with Puerto Rico[ citation needed ] $216,180 $150,000 144.12% December 31, 2018 September 20, 2017 467 Active
Stefan Karl's Year of Healing[69] [70] $169,670 October 10, 2016 Unknown
Support Victims of Pulse Shooting[71] [72] [73] $7,853,140 $10,000,000 78.53% September 30, 2018 June 12, 2016 840 Active
Support The Grimmie Family[74] [75] $192,396 June 26, 2016 June 11, 2016 15 Unknown
Saving Eliza[ citation needed ] $2,025,540 $4,000,000 50.64% January 5, 2016 April 18, 2015 262 Terminated
Saving Eliza Continued[ citation needed ] $2,115,870 $3,000,000 70.53% July 19, 2019 September 29, 2017 658 Active
mmsdefensefund[76] [77] $131,796 $200,000 65.90% May 27, 2015 December 17, 2014 161 Unknown
Support Officer Wilson[78] $183,259 $250,000 73.30% August 27, 2014 August 27, 2014 0 Unknown
Homeless Valedictorian College Fund[79] $105,000 $60,000 175.00% May 10, 2014 July 7, 2014 58 Terminated
Build Barbara Garcia a Home[80] [81] $73,810 May 21, 2013 Unknown
BUCKS FOR BAUMAN![82] [83] $810,230 $1,000,000 81.02% July 19, 2019 April 16, 2013 2,285 Terminated
Celeste & Sydney Recovery Fund[84] [85] $797,430 $1,000,000 79.74% July 19, 2019 April 16, 2013 2,285 Active
Emily Scott's Dream 2014 Sochi, Russia[86] [87] $59,380 $15,000 395.87% April 12, 2013 Active
Voddie Baucham's Medical Expense Fund[88] [89] $1,073,180 $1,250,000 85.85% February 16, 2021 February 13, 2021 3 Active

References [edit]

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External links [edit]

  • Official website

How Does Gofundme Make Their Money

Source: https://en.wikipedia.org/wiki/GoFundMe

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