GoFundMe explained and what happens to the money that is donated

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People across the world raise cash for all sorts of reasons, from life-saving treatment to new homes. People have poured their lives onto the website in the hopes of moving people to support their cause.

And sites like GoFundMe were set up to help make it easier for people to give to those who might need some extra help.

Highlights

  • But what happens when the target is reached? How and when do they get the money? And what kind of cut to GoFundMe take?

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The first thing you should know is that while you can fundraise for any reason, there are limits and the site has been known to shut down appeals that are controversial or do not fit with their ethos.

We have had a look at how it works.

And when it comes to donating, while it stipulates in its terms and conditions fundraisers must provide all correct information, it also makes clear that you donate your money at your own risk and they will not be refunded unless GoFundMe agrees to a refund.

But what happens to that money?

Once money starts coming in, the ‘benefactor’, which is usually the person who has set up the GoFundME, can remove money as and when they wish to without affecting the total on your page. GoFundMe said: “Withdrawing money does not affect the progress meter displayed on your campaign. Simply click ‘Withdraw’ while logged into your account and follow the instructions.

“You can withdraw your balance directly to your bank account. Bank transfers take two-five business days to arrive.” But you can also add a “benefactor” if you are fundraising for a friend or relative or charity and the money will go to their account instead.

And if you go over your target, you can still keep receiving donations as there is no limit to the amount someone can raise. In GoFundMe’s terms and conditions it seeks to remind people, if they donate money, they can not ask for the money back – even if they think the money is not being spent the way they think it should be.

“Transaction fees of 2.9% + £0.25 (includes VAT) apply. Certified UK charities campaigns have 1.9% + £0.20 fees, with no fees on Gift Aid.” Find out more here.

Yes. It takes 2.9% as a processing fee, it said: “GoFundMe wants to make it easy for you to raise funds for the causes you care about, which is why, unlike other sites, we offer 0% platform fees for personal and charitable UK fundraisers when you crowdfund with us. Does GoFundMe take some of the money?