How Much Does GoFundMe Take Out in Fees? Explained
✅GoFundMe charges a 2.9% transaction fee plus $0.30 per donation. Fundraisers keep 97.1% of donations, maximizing support for causes that matter.
GoFundMe is one of the most popular online fundraising platforms, known for its ease of use and broad reach. However, many users are curious about the fees associated with using GoFundMe. As of 2023, GoFundMe does not charge a platform fee in the United States. Nevertheless, there are still some costs involved, primarily in the form of payment processing fees.
When you start a fundraiser on GoFundMe, you can rest assured that there are no platform fees. However, payment processing fees still apply. These fees cover the costs of credit card processing and secure transactions, ensuring that your donations are handled safely and efficiently. The standard payment processing fee is 2.9% + $0.30 per donation. This means if someone donates $100 to your campaign, approximately $3.20 will be deducted as a fee, and you will receive $96.80.
Breaking Down the Fees
To understand better how these fees might affect your campaign, let’s take a closer look at a few examples:
- $10 Donation: The fee would be $0.59 ($0.29 + $0.30), so you receive $9.41.
- $50 Donation: The fee would be $1.75 ($1.45 + $0.30), so you receive $48.25.
- $100 Donation: The fee would be $3.20 ($2.90 + $0.30), so you receive $96.80.
- $500 Donation: The fee would be $14.80 ($14.50 + $0.30), so you receive $485.20.
Additional Considerations
While the absence of a platform fee is a significant advantage, it’s essential to consider the impact of the payment processing fee on your overall fundraising goals. Here are a few tips to help you maximize your campaign’s effectiveness:
- Set Realistic Goals: Take into account the processing fees when setting your fundraising target.
- Encourage Larger Donations: Since the flat fee of $0.30 has a more significant impact on smaller donations, encouraging larger contributions can help reduce the overall percentage lost to fees.
- Transparent Communication: Inform your donors about the fees so they understand that their contributions are slightly reduced by processing costs.
Conclusion
By understanding how GoFundMe’s fees work, you can better plan your fundraising strategy and ensure that you reach your goals effectively. Remember, while there are no platform fees, the payment processing fees are an essential factor to consider. With careful planning and transparent communication, you can optimize your campaign and make the most of the funds you raise.
Breakdown of GoFundMe’s Transaction Fees and Charges
When considering using a crowdfunding platform like GoFundMe, it’s crucial to understand the financial aspects involved, including the transaction fees and charges that may apply. Let’s delve into the breakdown of GoFundMe’s fees to give you a clear picture of what to expect when raising funds for your cause or project.
Understanding GoFundMe’s Transaction Fees
GoFundMe applies a standard transaction fee to each donation made on the platform. This fee is typically around 2.9% of the total amount donated, plus an additional $0.30 per donation. For example, if someone donates $100 to your campaign, GoFundMe would deduct approximately $3.20 as a transaction fee ($2.90 + $0.30).
It’s essential to consider these fees when setting your fundraising goal to ensure that you account for the deducted amount and still reach the desired funds.
Other Potential Charges on GoFundMe
In addition to the standard transaction fees, GoFundMe may apply other charges depending on the nature of your campaign. For instance, if you’re raising money for a charitable cause, GoFundMe partners with the payment processor to distribute the funds directly to the charity. In such cases, an extra 2.2% processing fee may apply.
Moreover, there are no platform fees for personal fundraisers, but a standard transaction fee is still charged on each donation.
Key Takeaways and Recommendations
- Always factor in the transaction fees when calculating your fundraising goal on GoFundMe.
- Consider promoting your campaign through social media and other channels to maximize visibility and increase donations, helping offset the deducted fees.
- Ensure transparency with your donors by informing them about the GoFundMe fees and charges, so they understand how their contributions are being processed.
By understanding the breakdown of GoFundMe’s transaction fees and charges, you can make informed decisions when launching your fundraising campaign and effectively reach your financial targets.
Comparison with Other Crowdfunding Platforms’ Fees
When considering fees on crowdfunding platforms, it’s crucial to compare GoFundMe’s fees with those of other platforms to make an informed decision. Let’s delve into a comparison of fees between GoFundMe and some of its competitors to see how they stack up:
1. GoFundMe vs. Kickstarter:
| Platform | Processing Fee | Platform Fee | Total Fee |
|---|---|---|---|
| GoFundMe | 2.9% + $0.30 per donation | No platform fee for personal causes, 5% for charity causes | 2.9% + $0.30 (personal) or 5% + 2.9% + $0.30 (charity) |
| Kickstarter | 3% + $0.20 per pledge | 5% | 8% + 3% + $0.20 |
While Kickstarter has a fixed platform fee of 5%, GoFundMe varies its platform fee depending on the type of cause. For personal causes, GoFundMe doesn’t charge a platform fee, making it a more cost-effective option in such cases.
2. GoFundMe vs. Indiegogo:
| Platform | Processing Fee | Platform Fee | Total Fee |
|---|---|---|---|
| GoFundMe | 2.9% + $0.30 per donation | No platform fee for personal causes, 5% for charity causes | 2.9% + $0.30 (personal) or 5% + 2.9% + $0.30 (charity) |
| Indiegogo | 2.9% + $0.30 per donation | 5% | 7.9% + 2.9% + $0.30 |
In this comparison, GoFundMe and Indiegogo have similar processing fees, but Indiegogo has a fixed platform fee of 5%, making GoFundMe a more attractive option for personal causes without a platform fee.
By analyzing these fee structures, individuals and organizations can choose the crowdfunding platform that best suits their needs and minimizes fees to ensure more of the funds raised go towards their intended cause.
Frequently Asked Questions
What fees does GoFundMe charge?
GoFundMe charges a 2.9% payment processing fee plus $0.30 per donation.
Are there any additional fees on GoFundMe?
GoFundMe also deducts a 0% to 10% platform fee, depending on the type of campaign.
Can I get a refund on the fees charged by GoFundMe?
No, the fees charged by GoFundMe are non-refundable.
How often are the fees deducted from the donations?
The fees are deducted at the time of the donation, so the recipient receives the net amount.
- GoFundMe charges a 2.9% payment processing fee plus $0.30 per donation.
- There is also a platform fee of 0% to 10% depending on the type of campaign.
- The fees are deducted at the time of the donation.
- Fees charged by GoFundMe are non-refundable.
Leave a comment below if you have any more questions about GoFundMe fees and be sure to check out our other articles for more information!
