Crowdfunding platforms like GoFundMe have made it easier than ever to support individuals in need, community projects, and charitable causes. While many campaigns are legitimate and help people facing real hardships, not every fundraiser is as trustworthy as it seems. Before donating your money to a GoFundMe campaign, it’s important to do your research and understand how the platform works. Here are seven key things to know before donating.
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1. GoFundMe Takes a Cut of Donations
Many people assume that 100% of their donation goes to the fundraiser, but that’s not the case. GoFundMe charges a transaction fee of 2.9% plus $0.30 per donation. This means that if you donate $100, the recipient will actually receive about $97. While the platform doesn’t take a percentage for personal campaigns, these processing fees can add up, especially for larger fundraisers.
2. Not Every Campaign Is Verified
GoFundMe does have fraud prevention measures, but not every campaign is thoroughly vetted. Unlike traditional charities, which must meet strict guidelines, anyone can set up a fundraiser on GoFundMe with little verification. If you’re donating to a personal campaign, it’s important to verify the legitimacy of the fundraiser by checking for updates, details about the situation, and evidence that the campaign is real.
3. Scams and Fraudulent Campaigns Exist
While most GoFundMe campaigns are honest, there have been cases of people faking illnesses, tragedies, or hardships to collect money. Some scammers use stolen photos or create false stories to gain sympathy and donations. Before contributing, do some research to ensure the person behind the campaign is real. If a story seems vague or overly dramatic with no verifiable details, proceed with caution.
4. Some Campaigns May Not Use Funds as Expected
Even if a fundraiser is legitimate, there’s no guarantee that the money will be used exactly as promised. Unlike charities, which are required to report how donations are spent, GoFundMe campaign owners have full control over the funds. Some people may use the money for unrelated personal expenses instead of the intended purpose. If you want your donation to go toward a specific need, consider donating directly to a verified charity instead.
5. There Are No Refunds Once You Donate
Once you donate, you generally can’t get your money back—even if the campaign turns out to be fraudulent. GoFundMe does have a refund policy called the GoFundMe Giving Guarantee, which allows donors to request a refund in certain situations, but the process can be complicated. If you’re unsure about a campaign, it’s better to wait and do more research before donating.
6. Some Fundraisers Are More Effective Than Others
Not all GoFundMe campaigns are created equal. Fundraisers with clear goals, frequent updates, and detailed descriptions tend to raise more money than vague or poorly organized ones. If you want your donation to have the greatest impact, look for fundraisers that provide transparent updates on how the money is being used. Checking for engagement, comments, and shares can also be a good indicator of a campaign’s legitimacy.
7. Consider Alternatives for Larger Donations
If you’re planning to donate a significant amount, consider giving directly to a verified nonprofit organization instead. Many charities have tax-exempt status, meaning your donation may be tax-deductible. Additionally, registered charities often have more accountability regarding how funds are used. While GoFundMe is great for personal causes, official charities may be a better choice for ensuring your money goes to the right place.
GoFundMe can be a powerful tool for helping those in need, but it’s important to be cautious when donating. Understanding how the platform works, verifying fundraisers, and considering alternative ways to give can help you make informed decisions. Before donating, take a few minutes to research the campaign and ensure your money is going to a legitimate and deserving cause.
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