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How Does GoFundMe Make Money: A Complete Guide you need to know about GoFundMe Business Model

In today’s fast-paced world, finding efficient ways to support causes and raise funds has become essential. GoFundMe steps in as the leading crowdfunding platform, revolutionizing how people fundraise for personal, charitable, and community needs. With millions of global campaigns and donors, GoFundMe is the go-to platform for community support. Understanding the GoFundMe business model goes beyond mere user interaction; it’s about empowering individuals, fostering generosity, and making a tangible difference in people’s lives. One key aspect to explore is how does GoFundMe make money.

To truly grasp the impact and sustainability of this platform, it’s crucial to explore how GoFundMe make money. From transaction fees and voluntary tips to strategic partnerships with nonprofits, GoFundMe has developed a multifaceted approach to revenue generation. This comprehensive understanding not only illuminates its financial mechanisms but also its growth potential and philanthropic impact. Join us as we delve into the intricacies of GoFundMe’s business model and uncover the financial underpinnings that drive its mission.

For a deeper dive into what GoFundMe is, check out a separate article by our team. This piece explores the business model canvas of GoFundMe, its various revenue streams, and how it sustains its operations. Join us as we uncover the financial underpinnings of GoFundMe’s platform and explore how it turns altruism into actionable support for countless causes.

GoFundMe Business Model

GoFundMe is a prominent crowdfunding platform that enables individuals and organizations to raise funds for various causes, from personal emergencies to charitable projects. Understanding its business model provides insights into how it generates revenue and sustains its operations.

Key Components of GoFundMe’s Business Model

Platform Fees

  • Service Fees: Initially, GoFundMe charged a 5% platform fee on each donation. However, since 2017, the platform has shifted to a voluntary tipping model for most personal campaigns, allowing donors to add a tip for GoFundMe’s services.
  • Transaction Fees: GoFundMe charges a standard payment processing fee of 2.9% plus $0.30 per donation. This fee covers the costs of payment processing by third-party providers.

Voluntary Donations

  • Tips from Donors: GoFundMe encourages donors to leave a voluntary tip to support the platform. This tipping model replaces the traditional platform fee and is a significant revenue stream.

GoFundMe Charity

  • Subscription Model: GoFundMe Charity offers a subscription-based model for nonprofits, providing advanced fundraising tools and features in exchange for a monthly fee.

Corporate Partnerships and Sponsorships

  • Branded Campaigns: GoFundMe collaborates with corporations to create branded fundraising campaigns. These partnerships help companies engage with their communities and support charitable causes.

GoFundMe Pro

  • Enhanced Services for High-Profile Campaigns: GoFundMe Pro is a tailored service for large-scale and high-profile campaigns, offering additional support and services for a fee.

Additional Revenue Sources

Data Analytics

  • Insights and Reports: GoFundMe offers analytics and reporting tools to campaign organizers, helping them track their progress and donor engagement. Advanced analytics might come with premium features or additional costs.

International Expansion

  • Global Market Penetration: By expanding into international markets, GoFundMe taps into a larger pool of users and donations, increasing its overall revenue.

GoFundMe Business Model Canvas

Key Partners

  • Payment Processors: PayPal, Stripe, and other payment gateways.
  • Corporate Sponsors: Brands and companies partnering for branded campaigns.
  • Nonprofit Organizations: Collaborations with charities and nonprofits for fundraising initiatives.
  • Technology Providers: Cloud services, data analytics tools, and cybersecurity firms.
  • Marketing Partners: Advertising agencies and media outlets.

Key Activities

  • Platform Development: Continuous improvement of the GoFundMe website and mobile apps.
  • User Support: Providing customer service and support for campaign organizers and donors.
  • Marketing and Promotions: Running marketing campaigns to attract new users and retain existing ones.
  • Compliance and Security: Ensuring compliance with financial regulations and maintaining platform security.
  • Community Engagement: Building and nurturing relationships with the user community.

Key Resources

  • Technology Infrastructure: Servers, databases, and software platforms.
  • Human Resources: Engineers, customer service teams, marketing professionals, and compliance officers.
  • Brand Reputation: Trust and credibility built over years of successful campaigns.
  • Data Analytics: Tools and systems for tracking and analyzing campaign performance.

Value Propositions

  • User-Friendly Platform: Easy-to-use interface for creating and managing fundraising campaigns.
  • Wide Reach: Access to a large, global donor base.
  • Flexible Fundraising: Options for both personal and charitable fundraising.
  • Secure Transactions: Safe and reliable payment processing.
  • Supportive Community: Encouragement and support from a vast network of donors.

Customer Relationships

  • Self-Service: User guides, FAQs, and automated support systems.
  • Customer Support: Email, chat, and phone support for more complex issues.
  • Community Engagement: Forums, social media interactions, and user feedback loops.
  • Personalized Assistance: Dedicated support for large-scale or high-profile campaigns.


  • Website: The primary platform for creating and managing campaigns.
  • Mobile App: iOS and Android apps for convenient access and management.
  • Social Media: Platforms like Facebook, Twitter, and Instagram for promotion and engagement.
  • Email Marketing: Newsletters and updates to keep users informed and engaged.
  • Partnerships: Collaborations with corporations and nonprofits for extended reach.

Customer Segments

  • Individual Fundraisers: People raising money for personal causes such as medical expenses, education, or emergencies.
  • Nonprofit Organizations: Charities and nonprofits using the platform for fundraising.
  • Corporate Partners: Businesses looking to run branded campaigns or support charitable causes.
  • Event Organizers: Groups or individuals organizing events that require fundraising.

Cost Structure

  • Technology and Development: Costs for maintaining and upgrading the platform.
  • Customer Support: Expenses related to providing support services.
  • Marketing and Sales: Costs associated with advertising, promotions, and sales efforts.
  • Transaction Fees: Fees paid to payment processors.
  • Compliance and Security: Costs for ensuring regulatory compliance and maintaining platform security.

Revenue Streams

  • Platform Fees: Historically, a percentage of each donation, though now primarily through voluntary tips.
  • Transaction Fees: Standard payment processing fees (2.9% + $0.30 per donation).
  • Voluntary Tips: Optional tips from donors supporting the platform’s operation.
  • Subscription Fees: Monthly fees from GoFundMe Charity and GoFundMe Pro users.
  • Corporate Partnerships: Revenue from branded campaigns and sponsorships.
  • Advanced Services: Fees for enhanced services offered to high-profile or large-scale campaigns.

How Does GoFundMe Make Money?

1. Voluntary Tips from Donors

  • Voluntary Contributions: While creating campaigns is free, GoFundMe encourages donors to leave a voluntary tip to support the platform. These tips help cover operational costs and are a primary revenue source.

2. Payment Processing Fees

  • Transaction Fees: GoFundMe charges standard payment processing fees on each donation. These fees typically include a percentage of the donation amount plus a fixed fee per transaction (e.g., 2.9% + $0.30 per donation).

3. Subscription Services

  • GoFundMe Charity: Nonprofits can subscribe to GoFundMe Charity, a tailored service offering enhanced features such as advanced fundraising tools, donor management, and detailed analytics. This service is typically offered at a monthly subscription fee.
  • GoFundMe Pro: Larger campaigns or those requiring more sophisticated features may opt for GoFundMe Pro, which provides additional support and advanced tools for a subscription fee.

4. Corporate Partnerships

  • Branded Campaigns: GoFundMe collaborates with corporations for branded fundraising campaigns. These partnerships often involve sponsorship deals where companies pay GoFundMe for visibility and association with charitable causes.
  • Corporate Donations: Some companies work with GoFundMe to match employee donations or run large-scale fundraising drives, contributing to the platform’s revenue through negotiated fees.

5. Advanced Services

  • Enhanced Campaign Support: High-profile or large-scale campaigns may require additional support and advanced services. GoFundMe charges fees for these enhanced services, which can include specialized consulting, premium customer support, and custom campaign features.

6. Data and Analytics Services

  • Insights and Analytics: For nonprofits and larger entities, GoFundMe offers detailed insights and analytics on fundraising performance. This service, often part of a subscription package, helps organizations optimize their campaigns and understand donor behavior.

GoFundMe Funding Rounds

Seed Funding

  • Date: March 2010
  • Amount: $300,000
  • Details: Early funding to help establish the platform and launch its initial services.

Series A

  • Date: November 2010
  • Amount: $1.2 million
  • Investors: Includes influential investors such as Michael Siebel and Andrew Mason.
  • Details: Aimed at expanding the platform’s capabilities and scaling its operations.

Series B

  • Date: March 2015
  • Amount: $500 million (estimated acquisition value by Technology Crossover Ventures and Accel Partners)
  • Details: This round marked GoFundMe’s rapid growth and solidified its position in the market. It also included strategic investments aimed at expanding the company’s market reach.

Series C

  • Date: May 2017
  • Amount: $100 million
  • Investors: Investors included Greylock Partners, Iconiq Capital, and Meritech Capital Partners.
  • Details: This round focused on enhancing platform technology, improving user experience, and expanding global outreach.

Additional Funding and Strategic Investments

  • Date: Throughout 2018 and 2019
  • Amount: Undisclosed
  • Details: Various investments are aimed at expanding GoFundMe’s services, particularly in international markets, and enhancing its technological infrastructure.

Impact of Funding on GoFundMe’s Growth

  • Technological Enhancements: Investments have enabled GoFundMe to develop robust, user-friendly features and maintain a secure platform for millions of users.
  • Global Expansion: Funding has facilitated GoFundMe’s entry into new markets, extending its reach to numerous countries around the world.
  • Acquisitions: GoFundMe has used part of its funding to acquire complementary businesses, such as CrowdRise in 2017, enhancing its offerings for both personal and nonprofit fundraising.

TL;DR- How Does GoFundMe Make Money?

GoFundMe’s business model revolves around facilitating fundraising for personal, charitable, and nonprofit causes while primarily earning revenue through payment processing fees and optional tips. By eliminating platform fees for personal campaigns in certain regions and offering specialized services like GoFundMe Charity for nonprofits, the platform enhances accessibility and support for diverse fundraising needs. Strategic partnerships and sponsorships further bolster its financial sustainability, ensuring GoFundMe remains a vital resource for individuals and organizations seeking to make a positive impact globally through crowdfunding.

How to start a platform like GoFundMe?

After knowing all about how GoFundMe works and how GoFundMe makes money, if you’re in a plan to start a similar platform, you’re at the right place. NCrypted Websites has its product named ‘Fundraiser’, a crowdfunding or fundraising website. With these, we have a GoFundMe clone to kick-start your startup. 

If you have an idea about your crowdfunding or fundraising startup and want to build a custom website, we will provide you with the best solution for that. We offer customizations in our ready-to-deploy products as well as a clone. 

Share Your Thoughts With Us!

Did we miss something? Come on tell us, what you think about our article ‘What is GoFundMe? The ultimate guide you need to know about how GoFundMe works’, in the comment section below.  

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