They have been vetted and should be safe. Stick to accounts verified by the company. Prosecutors said the couple spent the money on luxury goods and gambling and gave just $25,000 to the homeless man.Īll three people pleaded guilty to federal or state charges stemming from the case. The money was refunded by the company. ![]() In 2018 three New Jersey people were charged after an infamous GoFundMe campaign which raised $400,000 after a couple claimed they wanted to raise money for a homeless veteran who gave them his last $20 when their car ran out of gas. Can GoFundMe be used for scams?Ĭertainly, there are reports of GoFundMe scams. One common method is for scammers to hijack existing pictures and stories and direct donations to their own sites. Others simply create fake sympathy campaigns. When two of the five men convicted in the shooting were sentenced in December Mai's grandmother Mary Dieng said the family was left unhoused in part because of medical bills related to his treatment. But many fizzle without coming close to their goals. The goal for the fundraiser made by the 2-year-old Des Moines shooting victim's family was to make $100,000. High-profile fundraisers often make news. In 2016, the company projected revenues of $100 million and the company was valued at $600 million, the last year for which those figures were available, according to the San Diego Union-Tribune. Its business model is built on the number of donations it processes. The company asks donors to leave a voluntary tip after making a donation. Transaction fees are 2.2% plus the 30-cent fee per donation for fundraisers for charities. GoFundMe no longer charges a platform fee, so it is free for people to start a campaign. That means if a campaign raised $1,000 through 10 donations of $100 each, GoFundMe would collect about $32. On fundraisers for individuals or businesses it charges a 2.9% payment-processing fee on each donation, along with 30 cents for every donation. In those cases, the campaign organizer can elect to continue receiving money. Sometimes donations will be released to campaign organizers who have a direct, personal connection to the beneficiary. ![]() They are typically released only to the named beneficiary. More: Could your Facebook fundraiser or GoFundMe land you a big tax bill? Here's what to know before you start one How are donations collected and distributed?ĭonations are routed through GoFundMe payment processors. In the event of national tragedies, donors can go directly to GoFundMe to find campaigns and choose where to donate. How are donations solicited?Ĭampaigns start by sharing links among friends through email and other social-networking sites, according to the company. But they can quickly go viral. Kickstarter and Indiegogo are similar crowdfunding sites, but those sites usually host fundraisers for startup companies or projects. They set a goal, or how much they hope to raise, then describe why they need the money through stories and photographs. Users create campaigns to address a need. It essentially is a secure way to collect and distribute electronic payments or donations.
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