Founded in May 2010, by Brad Damphousse and Andrew Ballester, GoFundMe is a crowdfunding platform company that is located in San Diego, California. GoFundMe raises monetary contributions from a large number of people to raise money for people in need. They manage and conduct events like celebrations to solemn events related to health issues and accidents. Previously the founders of GoFundMe found another famous company known as the Paygr, which was an online website that was open to all public and where people sold various kinds of services. GoFunMe, when it was created in 2008, was initially known as CreatAFund. But later, they changed the name to GoFundMe after they began changing their business strategy and upgrading their features on their website. So, GoFundMe sounded more appropriate to represent their new business model.
Accel Partners, an American Venture Capital firm, bought a majority of GoFundMe’s stakes from Brad Damphousse and Andrew Ballester. The initial founders of the crowdfunding company decided to take a step back and relax from the everyday happenings of the company and handing them over to Accel Partners. The partners and founders made this deal, worth $600 million. And then finally in the year 2007, GoFundMe managed to take over CrowdRise, another crowdfunding company that raises charitable donations using crowdsourcing, where they take help and contributions from internet users for funds and new ideas to develop the society.
How does GoFundMe Function?
GoFundMe is basically a website that caters to users who are willing to help the society. So, what they do is, they enable users to share their ideas and strategies to raise money and funds by helping them create their own websites to do so. This way, a member (The person or a group willing to raise money and have approached GoFundMe for the same) can give out their opinion about how the funding should happen, share their strategy to do the same and describe their cause for the fundraising. They can so so by giving out positive and influential stories about the same, use human interest tactics to gain an audience and their attention and share many pictures, audio, and video files on their website to support their cause. GoFundMe has proper and legal affiliations with famous social networking sites like Twitter and Facebook. So, these members can use these popular social networking sites to share and make their cause known to the people. They can also do so via email. Then, when the cause has gotten enough views and has managed to influence a group of people or individuals, they will start making donations based on how much ever they can. So, this interested audience can make its donations using debit cards and credit cards. They are not allowed to use online payment systems for money transfer like PayPal and so on. to make these donations. The interested people who are making donations can also keep an eye on or track their donations or the funding process. Well there are pretty good alternatives to gofundme which actually does give the tough competition in the market place, to know more check out Gofundme.com alternatives
Since these donations are made because of the help of Social Networking sites, the people can also share their views on the cause and write comments and opinions on the same on the respective social network link. Now it is understood that GoFundMe must also generate a revenue to make itself function to be able to do what it does. So, when the donations are made, GoFundMe usually deducts 5 percent from an individual donation that the fundraisers receive and add them to their own revenue. That way GoFundMe generates its own revenue. In some cases, the cause may not be as widespread as the user or fundraiser expects and hence will probably not get donations. In such cases, GoFundMe usually lets the members or users off the hook by not charging them. GoFundMe has another affiliation with America’s famous online payment service provider, WePay. So, as GoFundMe keeps deducting a 5 percent from every donation made to the user, WePay takes at least 2.9 percent for its own benefits from the fundraiser. WePay also takes away $0.30 from GoFundMe with each of the latter’s transactions. So, the fundraiser has to let go a maximum of 8 percent from each of his or her or their received donation.
Funding a Project on GoFundMe
Before a group or a person starts a fundraiser on GoFundMe website, he, she or they need to fist register to GoFundMe. They can do so by using their Facebook account or simply by registering traditionally using their email address. They have to provide their real first and last names (GoFundMe does not accept anonymous names), their email address that they use the most, confirm the email address and then create their password. The process is fairly simple and they do get a confirmation or verification of their Login ID to their provided email address. The member can then start their campaign and their fundraiser on GoFundMe.
The Perfect Campaign
GoFundMe believes that a perfect campaign gets the perfect donations. For that, they urge all their members to make use of some simple tips and methods. They believe that people usually tend to go for something that looks more appealing to the eye. The person who is looking at the campaign should be attracted to it and should want to look at it further. So, a picture or a video can create wonders. Usually, something that is candid and captures a moment perfectly and is not highly orchestrated. These images and videos shouldn’t be dull, non-appealing or blurry with low quality. That usually tends to put off the person according to GoFundMe. So, hitting the human interest side of a person is the best way to go about it. Then, the next most important thing is the content. Anything blatant and ‘in-your-face’ is a big no-no. The message and the information about the campaign should be simple, should have clarity and should be subtle. It is always better to neatly smoothen it out rather than nose-diving into it! The text should give the donor a clarity about the campaign. It should be crystal clear and yet should be able to leave a strong presence in the person’s mind.
Also Check Gofundme vs Kickstarter
The next best thing to make a successful campaign is to try and garner support from people who the user already knows. This is because they understand the person and know him or her better than a stranger. He or she will have no reluctant doubts about the person’s authenticity if they already know him or her. So, if the fundraiser is able to get attention from his or her known groups, then the initial support will lure in the others as well. This isn’t just about the donations, these immediate group of friends and family can also help the fundraiser by sharing his or her cause on their own social networking accounts.
Also Check Gofundme vs Indiegogo
The biggest advantage that comes with GoFundMe is that it allows fundraisers to share their campaigns though famous social networking sites like Facebook and Twitter. Facebook is used and seen by millions of people every day. According to the statistics of GoFundMe, there are 350 percent chances of people getting more donations via platforms like Facebook. So it is always recommended that the fundraiser starts a Facebook account and make a few friends who can help him or her spread the campaign before the actual donations start. It is always better that the user always sends across and explain their cause on their campaign so that people can understand the significance of it.
GoFundMe also believes that it is silly for a person to depend just on Facebook and Twitter to promote their campaign. It recommends all the users who are participating in the campaign to even make use of smaller, yet highly used platforms like text messages and emails to send their message. This way, the campaign will gain attention faster, more people will be drawn to it in a lesser amount of time and it will get donations faster if it is worth it. This also helps build a strong sense of community among the users and the donors alike and, like they say, ‘The more the merrier’ and hence the want to do something for a cause because more people are also willing to do the same will be an encouraging factor in donating.
GoFundMe also urges all its users to keep updating about their campaign time and again. There needs to be consistency in promoting it. One should not forget about the campaign after posting it on a social networking site thinking it will be spread on its own. It doesn’t work like that. The user should be the biggest motivating factor in spreading the word and making others realize the nature of the cause and why it is worth fighting for. So, a user should never take a back seat, he or she should, in fact, look to work harder than before to keep making sure that it gets enough donors. The last thing to do is to always make sure to thank the donors. Once a user gets a money, he or she shouldn’t just go ahead with the cause. Being polite and humble and thankful is always a good way to end things. Next time there is a campaign, people will make sure to always look for the user and help out. Gofundme has is own application to manage the campaigns check out gofundme app