With GoFundMe in the news for their decision to ban the Canadian trucker convoy fundraiser, it’s important to remember this isn’t the only time this predatory company has done wrong.
In fact, even if you ignore their ideologically-driven unfairness, their main offense is much worse. GoFundMe takes advantage of the sick and mourning on a daily basis.
Over 30% of GoFundMe’s fundraisers are for funeral or medical expenses. You can safely say these people who are fundraising for such things are truly at their most vulnerable. But that doesn’t stop GoFundMe from taking advantage.
GoFundMe takes 30 cents of every dollar donated. They also charge nearly a 3% processing fee on every donation made. They then also have the audacity to ask for “tips” which they claim helps the company operate, as if they were barely scraping by.
Truth is, GoFundMe is a cash cow that profits from tragedy. Taking 30% from those already too poor to afford medical services should be considered one of the most predatory behaviors ever conceived. The medical industry itself can be pretty predatory, but at least they are providing the actual service. GoFundMe does nothing other than collect money and pass it through. After taking their 30% cut of course.
GoFundMe is a total disgrace, yet they portray themselves as this Robin Hood-like character who helps the poor. When in reality they’re as predatory as any quick-cash or payday loan store you see all over poor communities.
I urge people to not use GoFundMe until they lower their fees to something more in line with what they provide, which is very little. No more than 5% total would be more than fair for simply being a payment processor that provides no other services.
Until GoFundMe operates more fairly, nobody should use them.
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