GoFundMe to Launch Gift Cards - New Fundraising Option

GoFundMe Introduces Digital Gift Cards for Charitable Giving

GoFundMe is currently testing a novel approach to gift-giving, allowing individuals to purchase digital gift cards for their friends and family. These cards are designed to facilitate donations to the recipient’s preferred nonprofit organizations, particularly during the holiday season.

Pilot Program and Future Launch

The product is presently in a pilot phase and has not yet been released to the general public. Following a period of gathering feedback from both consumers and participating nonprofits, GoFundMe intends to officially launch the gift card offering.

Variety of Themes and Causes

The digital gift cards will be available starting at a price point of $5. A diverse selection of themes and causes will be represented, including options for occasions like Birthdays, Christmas, Hanukkah, and Ramadan. Furthermore, cards will cater to specific interests, such as support for animal welfare, cancer research, and environmental conservation.

Leveraging Giving Funds – A Fee-Free Approach

Unlike conventional gift cards, these operate through GoFundMe’s Giving Funds. This innovative system is a fee-free donor-advised fund (DAF), launched in June, designed to broaden access to DAFs for everyday donors. Traditionally, DAFs have been inaccessible to many due to substantial minimum contribution requirements and associated fees.

How the Gift Cards Function

Upon redemption, the gift card amount is deposited into the recipient’s individual Giving Fund. Recipients then have the flexibility to donate the funds immediately to a charity of their choice, or allow the funds to accumulate tax-free, potentially increasing their future charitable impact. The purchaser of the gift card is eligible to receive a tax deduction.

Extensive Nonprofit Network

Recipients will have access to a network of over 1 million nonprofits available on the GoFundMe platform. This includes a wide range of organizations, from local food banks to international entities providing disaster relief, youth support, and animal protection.

Appealing to Gifting Preferences

GoFundMe’s new gifting strategy is expected to resonate with users seeking more meaningful presents. Instead of a generic item, individuals can empower their loved ones to support causes they deeply care about, such as a local soup kitchen assisting families during Thanksgiving.

Promoting Philanthropy Across Generations

These nonprofit gift cards also present a valuable opportunity for older generations to instill the importance of charitable giving in younger family members. They can facilitate discussions about various causes and the tangible difference donations can make.

GoFundMe’s Recent Milestones

In May, GoFundMe commemorated its 15th anniversary, announcing that it had facilitated the raising of over $40 billion globally. The company also introduced GoFundMe Pro, a dedicated platform designed to assist nonprofits with their fundraising efforts, incorporating AI tools to streamline the donation request process.

Note: This article has been updated to reflect the fact that the product is currently in a pilot program and is not yet available to the public.