GoFundMe Fees and Charges

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Quick Answer

• GoFundMe charges a platform fee, which is often 0% for personal causes and verified non-profits.
• Separate payment processing fees apply to each donation, usually around 2.9% + $0.30.
• The total cost is the sum of the platform fee and payment processing fees.

Who This Is For

• Anyone planning to launch a GoFundMe campaign to raise money for a personal cause, project, or event.
• Individuals who donate to GoFundMe campaigns and want to understand where their money goes after fees.

What to Check First

• GoFundMe’s current platform fee policy for your specific campaign type.
• The standard payment processing fees charged by third-party processors.
• Any potential international transaction or currency conversion fees.
• The method GoFundMe uses to deduct fees from your donations.
• Whether there are any optional donor contributions that affect the net amount.

GoFundMe Fee Structure: What to Expect

Alright, let’s talk brass tacks. When you’re setting up a fundraiser, you need to know the score on fees. GoFundMe keeps things pretty transparent, but there are a couple of layers.

• Action: Review GoFundMe’s platform fee policy.
• What to look for: GoFundMe often advertises a 0% platform fee for personal fundraising campaigns and for verified non-profits. This means they don’t take a cut of the money you raise for their own operations. However, it’s always wise to double-check their terms of service or help center, as policies can sometimes shift, or specific campaign types might have different structures.
• Mistake to avoid: Assuming the 0% platform fee means absolutely no cost. That’s a common oversight, and it can lead to surprises down the line.

Understanding How Much is GoFundMe Fee: Platform and Processing Costs

So, you’ve got the platform fee, which is often zeroed out. But that’s only part of the story. The real money-moving happens with payment processing.

• Action: Understand the payment processing fees for each donation.
• What to look for: GoFundMe partners with payment processors like Stripe or PayPal to handle the actual transaction of money from donors to your campaign. These processors charge a fee for their service. Typically, this is a percentage of the donation amount plus a small flat fee per transaction. For example, it might be around 2.9% + $0.30 per donation. This is a standard charge across most online payment systems.
• Mistake to avoid: Underestimating the cumulative effect of these per-donation fees. If you get 100 donations of $20, those small percentages and cents add up fast. It’s easy to forget this adds up significantly over time.

• Action: Check for international transaction fees.
• What to look for: If you have donors from outside your country, or if you’re receiving funds in a different currency than your own, there might be additional fees. These can include currency conversion charges or international payment processing surcharges. These are usually levied by the payment processor, not GoFundMe directly, but they impact your total proceeds.
• Mistake to avoid: Not considering the global aspect of donations. If your campaign has international appeal, these fees can chip away at your fundraising goal more than you might expect. Always check the specific rates for cross-border transactions.

• Action: Review how GoFundMe deducts fees.
• What to look for: GoFundMe typically deducts both the platform fee (if any) and the payment processing fees automatically from each donation as it comes in. This means the amount you see credited to your campaign is already net of fees. They then disburse the net amount to the beneficiary. It’s good to know this so you’re not surprised when the final payout occurs.
• Mistake to avoid: Assuming fees are paid out of pocket later. This isn’t usually how it works. If you’re expecting a certain amount to hit your account, and it’s less, it’s because the fees were already taken.

Common Mistakes

• Mistake — Only considering the GoFundMe platform fee.
• Why it matters — This is the most common pitfall. People see “0% platform fee” and think they’re getting off scot-free. This leads to a significant underestimation of the total costs involved in running a campaign.
• Fix — Always factor in the payment processing fees. For every dollar donated, a portion will go towards these transaction costs. Calculate your expected total fees by multiplying your fundraising goal by the processing fee percentage and adding the flat fee for each anticipated donation.

• Mistake — Not checking for international transaction fees.
• Why it matters — If your campaign attracts donors from abroad, or if you’re withdrawing funds in a different currency, these fees can add up quickly. They can significantly reduce the net amount you receive, especially if you’re not expecting them.
• Fix — Before launching, investigate GoFundMe’s (or their payment processor’s) policy on international transactions. Look for details on currency conversion rates and any additional international processing charges. If these fees are high, consider advising donors on the most cost-effective ways to contribute.

• Mistake — Assuming fees are static.
• Why it matters — Fee structures for online platforms and payment processors can change. What was true when you researched last year might not be the case today. Relying on outdated information can lead to financial miscalculations.
• Fix — Make it a habit to visit the GoFundMe Help Center or their official fee page before you launch your campaign and periodically throughout its duration. This ensures you’re always working with the most current information.

• Mistake — Not accounting for donor tips.
• Why it matters — While GoFundMe itself might not charge a platform fee for many campaigns, donors often have the option to add an extra “tip” to their donation, which goes to GoFundMe. While this is optional for the donor, it’s an additional cost that comes out of the total amount processed.
• Fix — Be aware that any tips added by donors will increase the total transaction volume and therefore the payment processing fees. While you can’t control donor generosity, understanding this dynamic helps you forecast your net proceeds more accurately.

• Mistake — Misunderstanding how fees are deducted.
• Why it matters — Some people might think they have to pay GoFundMe fees out of their own pocket at the end of the campaign. This isn’t the case. If fees aren’t deducted automatically, it can lead to confusion about the actual funds available.
• Fix — Confirm GoFundMe’s standard practice: fees are usually deducted directly from each donation before the remaining balance is credited to your account or sent to the beneficiary. This means the money you receive is already net of GoFundMe and processing costs.

• Mistake — Not verifying non-profit status benefits.
• Why it matters — Verified non-profits often get special treatment, like a 0% platform fee. If you’re running a campaign for a registered charity and don’t confirm this status, you might end up paying unnecessary platform fees.
• Fix — If you’re fundraising for a registered charity, ensure it’s properly verified with GoFundMe. This often involves submitting documentation. Once verified, you can be confident about the platform fee structure applicable to your organization.

FAQ

• What is the GoFundMe platform fee?

GoFundMe typically offers a 0% platform fee for personal fundraising campaigns and for verified non-profit organizations. This means GoFundMe does not take a percentage of the funds raised for its own operational costs. However, it’s always best to check their latest terms and conditions, as this can vary by region or campaign type.

• Are there separate fees for payment processing?

Yes, absolutely. In addition to any platform fee, there are payment processing fees charged by third-party providers like Stripe or PayPal. These fees cover the cost of securely transferring money from donors to your campaign. They are usually around 2.9% of the donation amount plus a flat fee of $0.30 per transaction.

• How are GoFundMe fees deducted?

GoFundMe generally deducts both the platform fee (if applicable) and the payment processing fees directly from each donation as it is made. The net amount, after all fees are accounted for, is then credited to your GoFundMe account or sent to the designated beneficiary. This ensures you receive the funds minus the associated costs.

• Do I have to pay GoFundMe fees if my campaign doesn’t reach its goal?

You will still be responsible for the payment processing fees on any donations that are successfully collected, even if your campaign does not meet its overall fundraising goal. The platform fee, if applicable, may also still apply based on GoFundMe’s specific policies for campaigns that don’t reach their target.

• Are there fees for withdrawing funds from GoFundMe?

GoFundMe itself typically does not charge a fee for withdrawing funds to your bank account. However, your bank may impose its own fees for receiving incoming electronic transfers. It’s a good idea to check with your bank about any potential charges they might apply.

• What if I’m fundraising for a registered charity?

Verified non-profit organizations are often eligible for a 0% GoFundMe platform fee. This is a significant benefit for charities. You will still incur the standard payment processing fees on donations. To take advantage of this, ensure your organization is properly verified through GoFundMe’s process.

• Can donors cover the GoFundMe fees?

Yes, donors have the option to add an extra “tip” to their donation. This tip is intended to help cover GoFundMe’s platform and payment processing fees. While this is entirely voluntary for the donor, it’s a way for them to ensure that the full amount they intended to give goes directly to the campaign cause.