How much does GoFundMe charge on a $100 donation?

Recently, crowdfunding platforms such as GoFundMe have become the first choice for those who are in need of financial support for various purposes ranging from medical emergency to creative projects. What are the fees that these websites charge? Using GoFundMe to raise funds might make you ask yourself “What does GoFundMe charge on a $100 donation?” Here is the breakdown:

GoFundMe is built on a simple fee structure but there are several factors that need to be taken into account while estimating how much your contribution will be deducted in terms of charges. To begin with, every time someone donates money using GoFundMe, you will be charged by the platform. This amount covers costs incurred to run this platform including; customer support, payment processing and website maintenance among others. Currently, GoFundMe charges 2.9% of the donation total plus an additional $0.30 for each transfer.

Let us put it this way: if someone raises $100 through their GoFundMe campaign then when all is said and done, $3.20 (which includes $2.90 and $0.30) will be deducted by GoFundMe as its platform fees . Therefore,$96.80 would be left after deducting platform fee from the donation of 100 dollars. But that’s not all about the fee that needs your attention; there are other third-party payment processors where transactions take place securely at Go Fund Me site.

It’s important to note that these payment processors have their own fees separate from the platform fee charged by GoFundMe. Right now, in the USA, GoFundMe uses Stripe as its payment processor. They charge 2.2% + $0.30 per transaction.

Consequently, on a donation of $100, Stripe would subtract $2.50 (the 2.2% of $100) plus $0.30 making the total cost of payment processing equal to $2.80. The total fees for a donation of $100 include: this alone stands at ($3.20 platform fee +$2.80 payment processing fee =) which is approximately six dollars.

Therefore, after these costs are deducted you will have received only $94 out of the initial amount received from the donor ($100). In order to properly set your fundraising goal and communicate with potential donors it is necessary to remember about these charges. One way to make donors feel more confident about donating to your cause is by letting them know what portion of their contribution goes towards fees.

It should also be noted that GoFundMe allows donors to pay for those fees themselves. Donors may leave additional money when they donate in an effort to cover some or all of the platform and processing charges involved in their donations. Now, if the donor decides to pay for those fees, you would receive the entire $100 donation without any deductions and this money will be directed to the goal of your campaign.

Similarly, GoFundMe has made a promise known as GoFundMe Guarantee where donations are safeguarded and proceeds are directed towards intended persons. In case there is any misconduct or misuse of funds, GoFundMe takes the responsibility to verify that such monies are put into their rightful use. This creates more confidence between fundraisers and donors in terms of security and transparency.

Although there is no way one can avoid expenses when using crowdfunding networks such as GoFundMe, it is necessary to look at what can be gained on one hand versus what may have been lost on the other. For example, with GoFundMe’s user-friendly interface you can reach out to a wider target population and raise funds quickly. The overhead cost incurred by GoFundMe and payment processors serves as a means of ensuring security, trustworthiness and convenience of the platform.

If the donor were to pay such fees, you would receive all $100 of the donation without any deductions, and this money will be directed towards your campaign goal.

GoFundMe has also made a pledge called GoFundMe Guarantee that protects donations and ensures funds go directly to the intended beneficiary. Whenever there is a case of misconduct or mismanagement of funds, GoFundMe plays its part by ascertaining that such monies are put into their rightful use. This gives more assurance between fundraisers’ and donors with respect to security and accountability.

While it is impossible to avoid costs like these while using crowdfunding platforms like GoFundMe, it is important to consider what could have been gained versus what was lost. For example, by having an easy-to-understand page on GoFundMe allows for greater numbers of people who can be targeted hence helping in saving time taken for requesting money from others. The platform’s safety regarding security hinges on overhead costs payable to GoFundMe and payment processors.