What Happens If You Don’t Reach Your GoFundMe Goal?
Learn GoFundMe's policy on collected funds when goals are missed. Understand how to access contributions and manage your campaign effectively.
GoFundMe is an online platform for individuals seeking to raise funds for various causes. Many users begin a campaign with a financial target, leading to questions about what happens if that goal is not fully achieved. This article clarifies GoFundMe’s operational procedures and choices for campaign organizers when the fundraising objective remains unmet.
GoFundMe’s Funding Approach
GoFundMe operates on a “keep what you raise” model, meaning that campaign organizers receive all contributions made to their fundraiser, irrespective of whether their stated financial goal is reached. This approach distinguishes it from other crowdfunding platforms that might require the entire goal to be met for funds to be disbursed. The flexibility of this model allows organizers to access funds as they are donated, providing immediate support for their needs.
While setting up a personal campaign on GoFundMe is free, certain fees are applied to each donation received. The platform itself typically does not charge a fee for personal campaigns in the United States. Instead, its operations are supported by voluntary tips from donors.
Payment processing fees are deducted from each contribution to cover the costs associated with credit card and bank transfers. In the United States, this fee is generally 2.9% of the donation amount plus an additional $0.30 per transaction. For instance, a $100 donation would incur approximately $3.20 in processing fees, resulting in $96.80 being available to the campaign organizer. These fees are automatically subtracted, ensuring the organizer receives the net amount.
Accessing Collected Contributions
Campaign organizers can withdraw collected funds at any point, even if their fundraising goal has not been achieved. The process involves linking a bank account to the GoFundMe campaign. Organizers must provide verification details, including a government-issued ID, social security number, and proof of address. This verification ensures funds are sent to the rightful recipient.
Bank account setup and verification can take up to seven business days. Once verified, funds typically arrive in the linked bank account within two to five business days after a transfer is initiated. Organizers should complete the withdrawal setup promptly after receiving their first donation to avoid potential delays or automatic refunds. GoFundMe sends transfers automatically once funds are processed, and organizers can choose the frequency of these transfers.
Options for Campaign Management
Organizers have several options for managing their GoFundMe campaign if the initial goal has not been reached or circumstances change. A campaign’s financial goal can be adjusted at any time, allowing organizers to increase or decrease the target amount.
GoFundMe campaigns do not have a predetermined end date. Organizers can continue fundraising indefinitely until they decide to close the campaign. They can also turn off new donations while keeping the campaign page visible for updates or as a record of their efforts.
Organizers can issue refunds to donors. This is a voluntary action, for example, if funds are no longer needed or the campaign’s purpose changes. Donors may also request refunds directly from GoFundMe under specific circumstances, such as suspected misuse of funds or if the organizer fails to verify their account and withdraw funds within required deadlines, leading to automatic refunds. Refunds processed by the platform can take approximately five to ten business days to appear on a donor’s bank statement. GoFundMe does not provide tax advice, and the taxability of funds can vary depending on the specific nature and use of the donations.