When you think about launching a fundraiser on GoFundMe, the excitement of rallying support for a cause can quickly turn into confusion when it comes to understanding fees. Many people wonder: what percentage does GoFundMe actually charge? It’s a question that often stirs up anxiety and misconceptions.
Let’s set the record straight. As of recent policy changes, GoFundMe no longer takes a platform fee from personal campaigns. That means if you raise $1,000 for your cause, every penny goes directly to your campaign—at least in theory. However, there are still costs involved that can take away from the total amount received.
So where do these deductions come from? The reality is that while GoFundMe itself doesn’t deduct anything as commission anymore, third-party payment processors like Stripe or PayPal step in to handle transactions—and they do charge fees for their services. Typically, this processing fee ranges between 2.9% and 3.5%, plus an additional fixed cost per donation (usually around $0.30).
Now here’s where things get tricky: some users mistakenly believe that because donors have the option to leave tips for GoFundMe—which could be as high as 15%—that this amount is automatically deducted from their fundraising efforts. In truth, these tips are entirely optional and only affect those who choose to enable them during setup.
To illustrate how this works with real numbers: imagine someone receives a $100 donation through credit card processing:
- Payment Processing Fee: approximately 2.9% + $0.30 = about $3.20
- Optional Tip (if selected): 15% of $100 = $15 Thus, the total possible deduction could reach up to around $18.20 if the tip was included; however without any tip being added by donors, you'd receive closer to around $96-$97 after standard processing fees.
It’s important not just for fundraisers but also potential donors to understand how these deductions work so everyone knows exactly what funds will be available post-campaign.
If you're looking at ways to minimize these costs while maximizing donations raised through platforms like GoFundMe here are some strategies:
- Disable Tips During Setup - Uncheck options allowing donor tips so they aren’t prompted at checkout;
- Encourage Direct Transfers - For close friends/family consider suggesting alternative methods such as Zelle or Venmo which bypass transaction charges altogether;
- Set Clear Goals - Factor estimated fees into your overall ask; setting goals slightly higher than needed ensures full coverage; and finally, don't forget about matching gifts! Ask employers/community sponsors if they'd match contributions made towards causes—they may even cover those pesky transaction expenses!
In summary then—the actual percentage taken by GoFundMe isn’t quite what many assume it might be! With careful planning and awareness regarding all associated costs though—you can ensure more money ends up supporting whatever worthy endeavor you've chosen.