Does GoFundMe take 5%?

One of the most well-known crowdfunding websites is GoFundMe, which enables users to raise money for philanthropic, commercial, or personal causes. It’s vital to be aware that every gift made through GoFundMe is subject to a 5% platform fee. This means that GoFundMe will deduct $5 from a donor’s $100 donation to a campaign. The platform fee is only assessed to the campaign organizer; the donor is not subject to payment.

Donor tips are neither required nor expected by GoFundMe. Donors are only required to pay the platform fee assessed by GoFundMe. However, contributors have the choice to voluntarily tip GoFundMe to help sustain the website and its goals. These gratuities are totally up to the donor’s discretion and are not required.

Yes, all donations made on the platform are reported by GoFundMe to the IRS. This is due to the fact that every donation made through the platform is regarded as taxable revenue. Campaign managers are in charge of informing the IRS of the funds they receive from their campaigns and paying any necessary taxes.

The “Time’s Up Legal Defense Fund,” which was established to assist women who have experienced sexual harassment, assault, or abuse in the workplace, received the most money ever raised on GoFundMe. More than 20,000 individuals contributed to the campaign’s approximately $24 million in funding. Is GoFundMe a free service?

While there are no up-front costs associated with starting a campaign on GoFundMe, the website does charge a platform fee of 5% on each gift that is made there. Every donation is subject to a 2.9% + $0.30 payment processing fee that is levied by the payment processor (either PayPal or WePay). These fees support the company’s operation and payment processing costs, enabling GoFundMe to keep offering a dependable and secure crowdfunding platform.