Despite widespread distrust of crowdfunding platforms like GoFundMe, millions of Americans continue to contribute to campaigns on the site. In fact, since 2010, GoFundMe has raised over $40 billion for causes ranging from medical expenses and funeral costs to memorials and even fundraisers for people rebuilding their homes after natural disasters.
While many users are uneasy about the effectiveness of crowdfunding campaigns and worry that some of the money doesn't actually reach its intended recipients. This concern is not unfounded, as evidence suggests that GoFundMe charges significant service fees and that some fundraisers may not use the donations responsibly.
According to a recent survey by the Associated Press and the NORC Center for Public Affairs Research, less than 10 percent of Americans feel very confident in the effectiveness of crowdfunding campaigns. Many harbor doubts about who stands to profit from these platforms, with nearly half believing that service fees are unreasonable.
One major point of contention is the fact that GoFundMe defaults donors into tipping the platform a substantial percentage of their donation - currently 17.5 percent. This means that even if a fundraiser doesn't reach its goal, the platform still receives a significant portion of the donations made to it.
Additionally, some studies have shown that wealthier and whiter communities are more likely to be successful in crowdfunding campaigns, while those from lower-income backgrounds struggle to get their fundraisers off the ground. This disparity raises concerns about equity and fairness in the use of these platforms.
Despite these drawbacks, many acknowledge that crowdfunding can serve as a vital lifeline for individuals in crisis who have limited other options. Beneficiaries often report transformative outcomes even if a campaign is only mildly successful.
While there are likely more efficient and equitable ways to handle medical bankruptcies and funeral costs, providing some form of support through imperfect means like crowdfunding may be the best available option until better solutions materialize.
While many users are uneasy about the effectiveness of crowdfunding campaigns and worry that some of the money doesn't actually reach its intended recipients. This concern is not unfounded, as evidence suggests that GoFundMe charges significant service fees and that some fundraisers may not use the donations responsibly.
According to a recent survey by the Associated Press and the NORC Center for Public Affairs Research, less than 10 percent of Americans feel very confident in the effectiveness of crowdfunding campaigns. Many harbor doubts about who stands to profit from these platforms, with nearly half believing that service fees are unreasonable.
One major point of contention is the fact that GoFundMe defaults donors into tipping the platform a substantial percentage of their donation - currently 17.5 percent. This means that even if a fundraiser doesn't reach its goal, the platform still receives a significant portion of the donations made to it.
Additionally, some studies have shown that wealthier and whiter communities are more likely to be successful in crowdfunding campaigns, while those from lower-income backgrounds struggle to get their fundraisers off the ground. This disparity raises concerns about equity and fairness in the use of these platforms.
Despite these drawbacks, many acknowledge that crowdfunding can serve as a vital lifeline for individuals in crisis who have limited other options. Beneficiaries often report transformative outcomes even if a campaign is only mildly successful.
While there are likely more efficient and equitable ways to handle medical bankruptcies and funeral costs, providing some form of support through imperfect means like crowdfunding may be the best available option until better solutions materialize.
crowdfunding can be super sketchy 
. Like, I get it, people need help & all 
, but 17.5% for GoFundMe? 
that's just crazy! Can't they just keep more of the $$
? And honestly, it's kinda weird how some fundraisers don't even use the money right 
. But at the same time, I guess crowdfunding is better than nothing 
. For people in crisis, it's a lifeline, for sure 
. We just need to figure out ways to make it more equitable & fair 
. Maybe there are better solutions out there? 
like, dont get me wrong, its great that they r tryin 2 help but have u seen those fees?? 
.
. But at the same time, I can see why crowdfunding works for some people in a pinch... it's like a safety net or something 
️.
. And what's with this "success" metric where only wealthy communities can get their campaigns off the ground? 
It just doesn't feel right, you know? Like we're doing more harm than good when all those donations are just going to a big corporation 
.
.
Meanwhile, GoFundMe is raking in billions and people are worried about 17.5% of their donation going to the platform? Like, isn't that just good business or something? I mean, I've got a friend who's really into gardening and they're always talking about how much money you can make selling seedlings online... I wonder if crowdfunding is more than just for charity anymore 
Meanwhile, those struggling to make ends meet are left in the cold. I mean, can't we find a more fair way to handle medical emergencies and whatnot? Maybe some sort of community-driven system that's less about the benjamins and more about actual support? 
And I guess it's true, crowdfunding can be lifesaving for some people... but still, can't we do better than this? 
. It's all about perspective, man... we gotta keep an open mind and not just shut down the whole thing 'cause of some flaws 
. Maybe one day we'll find better ways to do things, but for now, let's give crowdfunding a break 
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