When it comes to raising funds for a cause, event, or individual in need, GoFundMe has become a popular platform for people to turn to. With its user-friendly interface and wide reach, it’s no wonder why many turn to GoFundMe to collect donations. However, one of the most common questions people have when using GoFundMe is: “How much percent does GoFundMe take?” This is a crucial question, as it can affect the amount of money that actually goes to the intended recipient. In this article, we’ll delve into the details of GoFundMe’s fees, explore the different types of fees, and provide you with a comprehensive understanding of how much GoFundMe takes.
Understanding GoFundMe’s Fees
GoFundMe’s fees are designed to cover the costs of maintaining the platform, processing transactions, and providing customer support. The fees are deducted from the total amount raised on the campaign. There are two main types of fees: the payment processing fee and the GoFundMe fee.
Payment Processing Fee
The payment processing fee is charged by the payment processor, Stripe, which is used by GoFundMe. This fee is a percentage of the donation amount, ranging from 2.9% + $0.30 per transaction. This fee is non-negotiable and is charged on every donation made to the campaign.
| Donation Amount | Payment Processing Fee |
|---|---|
| $10 | $0.29 + $0.30 = $0.59 |
| $100 | $2.90 + $0.30 = $3.20 |
| $1000 | $29.00 + $0.30 = $29.30 |
GoFundMe Fee
The GoFundMe fee is a flat rate of 2.9% of the total amount raised on the campaign. This fee is waived for campaigns that raise less than $1,000. However, if the campaign raises more than $1,000, the GoFundMe fee will be charged.
| Total Amount Raised | GoFundMe Fee |
|---|---|
| $1,000 | $0.00 (waived) |
| $5,000 | $145.00 (2.9% of $5,000) |
| $10,000 | $290.00 (2.9% of $10,000) |
Other Fees to Consider
In addition to the payment processing fee and GoFundMe fee, there may be other fees to consider when using GoFundMe. These fees can include: (See Also: How Much Is Math Tutoring? Unveiled)
- Bank fees: Some banks may charge a fee for processing transactions, which can range from $0.10 to $1.50 per transaction.
- Foreign transaction fees: If the campaign receives donations from international donors, there may be a foreign transaction fee charged by the payment processor, which can range from 1% to 3% of the donation amount.
- Chargeback fees: If a donor requests a refund or disputes a charge, GoFundMe may charge a chargeback fee, which can range from $5 to $25.
How Much Does GoFundMe Take?
Now that we’ve explored the different types of fees, let’s calculate how much GoFundMe takes. Let’s say a campaign raises $10,000. The payment processing fee would be 2.9% + $0.30 per transaction, which would be $290.00. The GoFundMe fee would be 2.9% of the total amount raised, which would be $290.00. Adding the two fees together, the total fee would be $580.00. This means that the campaign would receive $9,420.00, with GoFundMe taking a total of 5.8% of the total amount raised.
Conclusion
In conclusion, GoFundMe’s fees are designed to cover the costs of maintaining the platform, processing transactions, and providing customer support. The payment processing fee is a percentage of the donation amount, ranging from 2.9% + $0.30 per transaction. The GoFundMe fee is a flat rate of 2.9% of the total amount raised, waived for campaigns that raise less than $1,000. Other fees to consider include bank fees, foreign transaction fees, and chargeback fees. By understanding these fees, you can better plan your campaign and ensure that the majority of the funds raised go to the intended recipient.
Recap
Here’s a recap of the key points:
- GoFundMe’s fees are designed to cover the costs of maintaining the platform, processing transactions, and providing customer support.
- The payment processing fee is a percentage of the donation amount, ranging from 2.9% + $0.30 per transaction.
- The GoFundMe fee is a flat rate of 2.9% of the total amount raised, waived for campaigns that raise less than $1,000.
- Other fees to consider include bank fees, foreign transaction fees, and chargeback fees.
- By understanding these fees, you can better plan your campaign and ensure that the majority of the funds raised go to the intended recipient.
FAQs
What is the payment processing fee on GoFundMe?
The payment processing fee on GoFundMe is a percentage of the donation amount, ranging from 2.9% + $0.30 per transaction. (See Also: How Much Money To Be In Top 1 Percent? Revealed)
Is the GoFundMe fee waived for all campaigns?
No, the GoFundMe fee is waived for campaigns that raise less than $1,000. However, if the campaign raises more than $1,000, the GoFundMe fee will be charged.
What is the foreign transaction fee on GoFundMe?
The foreign transaction fee on GoFundMe is charged by the payment processor, Stripe, and ranges from 1% to 3% of the donation amount.
Can I avoid the GoFundMe fee?
No, the GoFundMe fee is a flat rate of 2.9% of the total amount raised, and cannot be avoided. However, you can try to raise less than $1,000 to avoid the fee. (See Also: Dear Math Why Don’t You Solve? The Mystery Unraveled)
What happens if I dispute a charge on GoFundMe?
If you dispute a charge on GoFundMe, the platform may charge a chargeback fee, which can range from $5 to $25.