The Problem: Asking for financial help can be uncomfortable.
The Solution: A platform that simplifies donations and builds connection
Buyers and sellers who would never meet in real life connect seamlessly on eBay, a global marketplace for just about every type of item, from vintage jewelry to car parts. GoFundMe has a similarly broad reach but a very different mission. Rather than enabling strangers to strike deals, GoFundMe bolsters direct giving: Its platform connects people seeking financial support with prospective donors — not just family, friends, and colleagues but generous, sympathetic strangers and even celebrities.
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Since its launch in 2010, GoFundMe has channeled more than $30 billion to causes, including families rebuilding their homes after natural disasters, pet owners struggling to pay for their animals’ medical bills, sports teams and athletes who can’t afford travel expenses to attend competitions, and small businesses needing a cash infusion to survive.
“The theme that we focus on is, How do we help people help each other?” says CEO Tim Cadogan, MBA ’98. “Of course, that is a contemporary problem — but it’s also an ancient thing, as human beings are social beings. We need each other, and we get through life by helping each other. We’re helping figure out ways to make help relatable, effective, and trustable in a world in which more and more of our lives are happening online, for better and for worse.”
The San Diego-based company, which operates in 20 countries and has around 800 global employees, estimates that about one in three Americans has used its platform. In 2024, users donated twice per second — $77 on average. People donated about 65 million times through the platform in 2024, with about 42 million donations helping to fulfill individual requests and 23 million donations to nonprofits. GoFundMe charges a 2.9% transaction fee plus 30 cents for each donation. This fee helps the company pay its payment processors and safely deliver funds; otherwise, it primarily relies on voluntary tips from donors to run the business.
After working in startups and consulting, Cadogan joined the company in 2020, right as COVID hit. He oversaw GoFundMe’s 2022 acquisition of Classy, which provides fundraising software to thousands of nonprofits, including the Salvation Army and World Central Kitchen. “I thought this combination of personal fundraising and organizational fundraising should and could be very powerful,” he says. “The key intersection is that organizations more and more want to embrace and empower the people that care about them to advocate on their behalf.”
Because that advocacy increasingly occurs through social networks, GoFundMe encodes a unique tracker in every donation link to better understand how and why some campaigns go viral. One wildly successful example: A user who donated $5 to Hurricane Helene relief efforts encouraged her vast network to follow her lead. In response, more than 4,000 people contributed more than $100,000. Campaigns can catch the eye of celebrities, whose donations then amplify the cause. Taylor Swift has used GoFundMe repeatedly, giving $26,000 to two women who lost their jobs and $10,000 to a young fan with bone cancer.
GoFundMe recently launched a streaming widget feature that allows anyone with a social media presence to integrate a fundraiser into their posts. Blending personality and values resonates with Gen Zers, who turn to influencers for inspiration and online communities for connection. GoFundMe’s new profiles feature capitalizes on that proclivity by encouraging users to share the causes and fundraisers they care most about. “We’re really leaning into expressing your philanthropic identity and then building community on that,” Cadogan says.
GoFundMe has been deploying artificial intelligence to help users craft more effective appeals. By analyzing the wording of more than 30 million fundraising requests, AI can recommend titles that inspire would-be donors to open their wallets. AI even nudges recipients to send updates and thank you notes, Cadogan says, because givers are more likely to continue supporting a cause when they know their contributions are appreciated and effective.
Requesters and donors are disappointed when fundraising falls short of its goals, so GoFundMe also taps AI to suggest realistic and achievable campaign goals. It scrutinizes data, including the beneficiaries’ location and other requests for similar aid, such as help with college tuition or coverage for a medical procedure.
“There’s a lot of psychology in how you set the goal,” Cadogan says. “Generally, it’s better to start with a lower number and move it so you have your real ultimate goal.” Last year, he used that knowledge for his GoFundMe campaign for Sierra Made Search and Rescue, a Los Angeles County nonprofit where he volunteers. He tweaked his fundraising goal 15 times and asked his friends to donate and share his request. A total of 121 donors stepped up, giving between $10 and $1,200. Cadogan’s last goal was $22,500. He raised $25,205.
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