GoFundMe provides a very simple mechanism for collecting money online. Thousands of people have already been able to attract millions of dollars and these figures are only growing. Any exciting vital events from weddings and festivities to incidents and illnesses can form the basis for the crowdfunding campaign opening in order to raise funds. All that a necessitous man needs is to create his own project, share it with his friends and start collecting money. Numerous innovative mechanisms for tracking results and integrating projects into social applications substantially simplify the task; also the mobile phones and websites are added.
Founded in 2008, the company got a ‘CreateaFund.com’ naming, then moved on to the new ‘GoFundMe’ brand. Formally, GoFundMe was presented by Brad Damphousse and Andrew Ballester to the general public on May 10, 2010; based in the US.
The GoFundMe platform offers three main ways to raise funds:
The most popular and primary option, which allows funds collecting for absolutely any purpose. At the same time, money comes to the author's account instantly and he can pick them up at any time. The designation of a financial goal is mandatory, but it isn’t achieved. Everything that's collected, all yours!
This crowdfunding campaign is a substandard variation with one difference: money is transferred to a charity organization strictly once a month.
Crowdfunding campaigns, based on the principle of "All or Nothing"
This is a relatively new opportunity that has emerged against the successful campaigns by major competitors: Indiegogo and, of course, Kickstarter. Here we are talking about raising funds for a particular product. And how’s quite expected - the authors offer some variants of rewards for supporting their project. The principle "All or Nothing" imposes clear requirements for achieving the minimum claimed amount, wherein funds from the accounts of sponsors are transferring only when the demanded amount is reached. The duration of such a campaign can vary from 1 week to 3 months.
The GoFundMe platform is open to all comers and Projects are accepted from anywhere in the world. And only for American citizens automatically creates an account in the WePay payment system; other international customers must have PayPal account. Sponsors don’t need to register on the platform, which is very convenient: they simply fill in payment requisites and the required amount debits from the card.
Commission platform is standard and is 5% of the amount collected. Payment systems additionally take 2.9% + $0.3 per transaction. And in the case of collecting funds for charities, the system commission rises to 4.25% due to the inclusion of FirstGiving in the chain, which provides all communications. At the time of writing, the platform has successfully financed more than 300,000 projects with a total value of $105 million. The monthly audience of the platform is approximately 3 million people.
The advantages of the GoFundMe:
Helps in attracting funds for completely different needs;
• Absolutely free to run the project, has a small commission;
• Detailed filtering of content and projects on the site;
• Running a personal crowdfunding company for your needs, you can at any time withdraw the donated money;
• Active user support and an extensive audience.
• Risk of financial losses when investing in commercial projects;
• Inability of tracking funds invested in the implementation of the business process;
• Lack of support for site traffic;
The complexity of conducting transactions for residents of the United States.