GoFundMe to Stop Collecting a Cut for Personal Campaigns
GoFundMe will no longer take a cut of donations from personal campaigns in Canada.
The online social fundraising platform announced its no-fee platform will begin with new personal fundraising campaigns in the country, dropping the standard five per cent platform fee GoFundMe typically collects from each donation.
“The generosity of Canadians is unparalleled, and we witness it every day through our platform,” said Rob Solomon, GoFundMe CEO. “Canada has become one of our largest giving communities, and we want to empower even more Canadians to help one another. As GoFundMe continues its evolution, it made perfect sense to introduce this new pricing structure in Canada.”
Payment providers will still collect a 2.9 per cent processing fee for each donation and an additional 30 cents per donation, but GoFundMe will no longer capitalize on campaigns dedicated towards personal causes.
With the new pricing structure in place, GoFundMe will rely on voluntary tips from donors to cover its operational costs, letting donors decide how much they want to give back. The company rolled out its no-fee option in the United States last month, making Canada the second market for the expansion.
“As the industry leader in social fundraising, we are always looking for ways to make fundraising easier, faster, and a more successful experience so that even more people can get immediate, direct support. We are confident that our growing giving community in Canada finds value in our service and will want to help us maintain and improve our free platform,” said Solomon.
More than two million Canadians have donated to campaigns through GoFundMe. In fact, nearly $70 million was raised in Canada last year. GoFundMe anticipates the 2017 total to top $200 million dollars going towards Canada-based campaigns.
