Entrepreneurship

Is GoFundMe legit?

Fundraising

GoFundMe, a crowdfunding platform, raises donations for notable projects and, also for personal causes as part of their crowdfunding process. Crowdfunding has been done over the years to help people and their projects grow and make contributions to society. Such crowdfunding keeps the humanitarian basis alive. But many times these crowdfunding sites are misused and people get scammed.

GoFundMe might have encountered some instances of such scammers. So, the question most commonly asked – Is GoFundMe legit and trustworthy? There are always risks that come with these crowdfunding sites. Nonetheless, the GoFundMe page has been legitimate for years and helped individuals and groups earn enough to start with their projects or help them with personal causes. This is mainly because of its policies and terms, it becomes easy to find if something seems fraudulent. 

Things you need to know about the GoFundMe page

What is GoFundMe?

GoFundMe is an American-based for-profit platform, where, individuals and new organizations can present their projects or causes they want to collect donations for. It has become the world’s biggest platform for crowdfunding for social purposes. GoFundMe is mostly used by individuals for personal causes when they are in a crisis. Their goal is to ensure that the money raised through the donations is only used for the purposes it was beforementioned.

How does it work?

  • GoFundMe works by raising money for different causes through donations.
  • If you want to fund your project you will have to write to GoFundMe about your cause in a detailed manner and present your story. You will also have to set a goal for your fundraising.
  • If your proposal is approved, you will receive a fundraising page where you will be able to accept the donations and share your campaign ideas by personalizing your fundraiser.
  • You get every penny of the donation, even if you do not reach the goal.
  • There is an option to give a minimum amount from your fundraiser as part of charity to GoFundMe.
  • The payments are secure and you can collect and distribute them through electronic payments. They even have the option to withdraw from the fundraiser if they have donated.

Are there any GoFundMe policies that make the platform secure?

Yes, GoFundMe has policies that allow guarded use of the collections.

  1. One of the main policies is that the amount collected will directly go to the cause or the person for which the fund was raised in the first place. This prevents the misuse of funds for any personal cause.
  2. For the payment procedure, the donations are paid through the use of secure payment encryption technology.
  3. GoFundMe also refunds the money back in case of its use for fraudulent purposes.

What amount does GoFundMe take?

GoFundMe offers the choice between two different pricing structures- Free, and Flex.

  1. Using the free option, you do not have to pay any platform fee. An industry-standard processing fee is charged with 1.9% + $0.30 per donation. They have the option to tip to GoFundMe charity from their crowdfunding amount.
  2. In the flex pricing structure, a 3% platform fee is charged with an industry-standard payment processing fee of 2.2% + $0.30 per donation.

Is GoFundMe legit?

From individual experiences and reviews, it seems that GoFundMe is legit and trustworthy. They also provide you with a website to look for a legitimate project. “GoFraudMe.com” is a website to identify fraud accounts on GoFundMe accounts, and it helps you learn how to identify them. You should look for the below-mentioned details to see whether the project or cause is genuine.

  • Look for specific details, such as the recipient’s connection to the project/cause, or the victim/family.
  • Look for images or videos posted by the organizer.

Watch this great video showing the efforts of GoFundME to stop fraudsters.

Click here to know more about the GoFundMe projects. Also, find out about another popular crowdfunding platform Kickstarter.

Leave a Comment

Your email address will not be published.

You may also like