What Percentage of GoFundMe Goes to the Recipient?
Uncover the actual amount a GoFundMe recipient receives, clarifying platform policies and processing deductions.
GoFundMe is a widely used platform for individuals and communities seeking financial support for various causes, from medical emergencies to community projects. It allows people to raise funds from a global audience. A common inquiry among both donors and campaign organizers is how much of a donation ultimately reaches the intended recipient. Understanding the platform’s financial mechanics is important for anyone engaging with crowdfunding.
Understanding GoFundMe’s Fee Structure
GoFundMe operates with a transparent fee structure for personal campaigns in the United States. The platform itself does not charge a fee to the campaign organizer for creating or managing a fundraiser. This means GoFundMe does not take a direct percentage of the money raised as a platform fee. This model allows organizers to keep more of the funds contributed by donors.
While GoFundMe does not levy a platform fee, other standard charges apply to each donation. The primary deduction comes from payment processing fees. These fees are necessary to facilitate online transactions and are a standard component of digital payments across many platforms.
The 0% platform fee emphasizes that GoFundMe’s revenue model for personal campaigns relies on optional contributions rather than mandatory deductions. This approach aims to maximize the amount that goes towards the campaign’s purpose. However, payment processing fees mean the recipient will not receive the full, gross amount of every donation.
The Role of Payment Processing Fees
Payment processing fees are standard industry charges applied to online financial transactions. These fees are incurred from various entities involved in moving money from a donor’s account to the campaign’s holding account. They cover costs from credit card companies, banks, and payment processors that facilitate secure and efficient transfers. These charges are a consistent feature across most online payment systems.
For donations to GoFundMe campaigns in the United States, the payment processing fee is typically 2.9% of the donation amount plus an additional $0.30 per transaction. For instance, if a donor contributes $100, $2.90 (2.9% of $100) plus $0.30 would be deducted, totaling $3.20 in fees. The net amount reaching the campaign would be $96.80. These fees are automatically deducted from each donation as it is processed, meaning the organizer does not need to manage these deductions.
These fees ensure the secure handling of financial information and the smooth flow of funds. They account for the various operational expenses involved in processing credit and debit card transactions, including fraud prevention and network costs. This clarifies that the percentage deducted is not a platform charge by GoFundMe but a cost associated with the digital transaction infrastructure.
Other Factors Affecting the Received Amount
Beyond payment processing fees, the optional donor tip can influence the overall financial landscape of a GoFundMe campaign. When making a donation, individuals are presented with an option to leave a voluntary contribution to GoFundMe. This additional amount is separate from the intended donation to the campaign itself. The purpose of these tips is to support GoFundMe’s operations, allowing the platform to maintain its 0% platform fee model for organizers.
Donors have complete control over this optional tip and can adjust the amount, including setting it to zero. This tip is added on top of the donor’s intended contribution to the campaign, rather than being deducted from it. Therefore, it does not reduce the funds designated for the campaign organizer or beneficiary. Campaign organizers are not informed whether a donor chooses to leave a tip.
Refunds or chargebacks could also impact the final amount received. If a donation is refunded, the amount, including any associated fees, would be reversed. A chargeback, which occurs when a donor disputes a transaction with their bank, can result in the reversal of funds.
How Funds Are Disbursed to Recipients
Once donations are made and payment processing is complete, campaign funds are available for withdrawal by the organizer or the designated beneficiary. The process involves setting up transfers, which requires the organizer to link a bank account to their GoFundMe campaign. The individual receiving funds must be over 18 years of age and possess a valid government-issued identification.
The verification process for setting up transfers can take up to seven business days. After verification is complete and transfers are initiated, it typically takes an additional two to five business days for the funds to arrive in the linked bank account. Funds are usually sent in batches as they finish processing, rather than individual donations being transferred separately.
Organizers can initiate withdrawals at any time, even before the campaign reaches its fundraising goal. The withdrawal process does not affect the progress meter displayed on the GoFundMe campaign page.