Introduction of GoFundMe
There are lots of people who want to crowdsource money. They have a good idea, they’re motivated and they’ve done some research. But there’s a problem: they don’t know where to find the money!
If you want to crowdsource anything, you don’t need to know how much money is needed or how the project will be funded. You just need enough people to support you and your project – and that is what GoFundMe does for crowdfunding.
Background of GoFundMe
GoFundMe is a website where people can raise money for charitable causes to be used by the organization of their choice. It has been around since 2008 and has become the largest crowdfunding platform in the world.
GoFundMe does a lot of good things (it’s a great way to raise money for worthy causes), but it also has some flaws — which we will get into in this post.
The biggest problem with GoFundMe is that it doesn’t use any ethics or transparency to its own site. A quick look at the donation page shows some pretty disturbing statistics: out of 1,000+ petitions, only 2% have raised less than $1,000; out of 1,000+ fundraisers, only 20 raised less than $5,000; and out of 1 million+, just 30% had enough money to cover the cost of their entry fee.
Neither GoFundMe nor its affiliates disclose how much money was raised for each engagement (which is why we don’t use it in our products), which means that GoFundMe donors are being deceived about how much they are really donating. This results in a number of problems:
• The donor sees false information about how much was raised for them (which may lead them to believe that they can help others when they really can’t);
• Donors who want to be more transparent will likely be turned off by GoFundMe’s lack of transparency;
• People will give more when they think they are helping and less when they realize that they aren’t; as a result, fundraising campaigns will get underfunded quickly (which may be fine if you have enough time to manually do your research and spend time answering questions).
This is an extremely important issue and one we see all too often with crowdfunding platforms: people and organizations are getting duped by imposters who promise them something very different from what you can actually provide. In fact, GoFundMe does nothing better than this — although it does have some unique features you might want to consider using instead:
• There is a “Bots and Trolls” section on its site that collects posts from trolls who try to scam donors by pretending to be them or contacting them directly (they trick donors into thinking they actually have something useful to offer). The site also has “Ask Me Anything” sections where users can talk directly with other users (
How to Fundraise with GoFundMe
GoFundMe is a popular online fundraising platform that allows users to raise funds for specific causes. This is the first place most people learn about it, and it’s been getting a lot of press recently because of the controversy surrounding celebrity deaths.
One of the most important things to remember with GoFundMe is that, while it may seem like it’s just another platform to raise money for causes, in reality, it’s much more than that. It allows you to raise money for anything from medical bills to your pet’s vet bill and beyond. Some people have raised tens of thousands of dollars for this very purpose in just one day. And for the vast majority of cases, you can use GoFundMe without giving any personal information at all (just a name and contact info). You can also set up your account without having anything to do with GoFundMe or services like them (just like you would any other fundraising site).
What makes this so valuable is that, as long as your cause aligns with the scope of their campaign, you can simply ask users to donate and consider what will be returned on average if they do so (and then target people who will give on average more than the median amount).
GoFundMe has been the best site for many a startup. And the company itself is not just a service but an organization that is working on improving the lives of the world’s most vulnerable people. Their goal is to help children in underdeveloped countries get an education that leads to a better life. They have established an office in Rwanda, where they have been able to help over 400 children go to school. They are also helping kids in India and Pakistan as well as other parts of Africa and Asia, and have even started work in Liberia, where Ebola was decimating the country’s population.
Their success story is one of many such stories which make them very special. It’s also not at all clear that they should be viewed as a public company, especially if they are able to keep operating like a non-profit organization (and with their unique business model).
For starters, they aren’t just a SaaS solution provider — they are creating new products (like GoFundMe Grants) that enable people to take action globally and support children who need it most — and there is no reason why they can’t continue doing so into the future. So it wouldn’t make sense at all for them to be considered public stock (since this would mean that their investors could sell shares at any time).
The second point is one I think should be emphasized more often: the company doesn’t do anything “for the world”; rather it does everything possible to make its users feel good about what it does and why it does it. It has incredible brand awareness: not just because of its name but also because of its early days (before anyone knew what “gofundme” meant). The fact that people still use GoFundMe today shows how much value there is in being part of something people do for themselves.
It encourages us to help others; wants us to contribute our own money; makes us feel good about ourselves by knowing we did something very worthwhile with our money when we give it away, and makes those donating feel like they made a difference too.
So while there might not be much value here compared to how many other companies are doing this already (especially if you think free self-help resources like SelfHacked), I don’t think we need to worry too much about being valued as public stock since this doesn’t mean doing anything wrong even if we are considered a private company — though