$30 Billion Raised on GoFundMe’s Crowdfunding and Nonprofit Giving Platforms

GoFundMe, the crowdfunding platform, has announced that it has generated $30 billion in crowdfunding campaigns since its inception in 2010. The platform has seen significant growth, with 150 million people participating in sending or receiving money through GoFundMe. A report by the Indiana University Lilly Family School of Philanthropy revealed that younger generations, including Gen Z and millennials, as well as those who are unmarried and less religious, are more likely to donate through crowdfunding rather than traditional nonprofits. GoFundMe’s CEO, Tim Cadogan, expressed his excitement about the platform’s ability to bring people together to help one another on a large scale. While GoFundMe has not released a breakdown of funds raised in individual years, its acquisition of Classy in 2022, an online platform for giving to nonprofit organizations, contributed to the reported $30 billion raised. In comparison, charitable giving to nonprofit organizations in the US reached $499.3 billion in 2022. The most common donation on GoFundMe is $50, and fundraising campaigns primarily reach the personal networks of the campaign creators. However, some campaigns attract a broader audience, particularly during high-profile events like disasters. GoFundMe monitors these campaigns and verifies them to ensure authenticity. The company also collaborates with payment processors and banks to detect fraud. Crowdfunding has gained popularity alongside the rise of social media and online financial services. It remains unclear how much crowdfunding has replaced traditional nonprofit donations, as data on crowdfunding is less public. GoFundMe shares anonymized data with GivingTuesday to track giving trends. Other platforms that facilitate online crowdfunding include DonorsChoose and Meta (Facebook and Instagram fundraisers). Cadogan believes there is potential for further growth in online donations and hopes to normalize asking for help in the coming years.