Business planning, Funding, Legal

GoFundMe to ramp up crowdfunding battle with rival Kickstarter

Michelle Hammond /

US-based crowdfunding platform GoFundMe is looking to accelerate its growth with a new partner program, amid reports it is currently raising about $3 million in campaigns every month.

 

GoFundMe, which was founded by Brad Damphousse and Andrew Ballester, has been described as “Kickstarter for the rest of us”.

 

Based in San Diego, GoFundMe is a do-it-yourself online fundraising service, which helps people raise substantial amounts of money in online donations for their various causes.

 

But unlike its competitor Kickstarter, GoFundMe is not limited to the US. It also operates in Canada, Australia, the United Kingdom and major European Union countries.

 

The company is quick to point out you don’t have to be a non-profit in order to raise money on the platform.

 

“Anyone can raise money online using GoFundMe’s customisable donation pages. Our users often raise money for themselves or for friends they want to help out,” the website says.

 

“GoFundMe was designed to allow everyday people to do wonderful things with the money they raise online. That said, many non-profits do use GoFundMe.”

 

International customers, including those in Australia, are required to connect or create a PayPal account inside of GoFundMe during the sign-up process.

 

Any payments they receive will immediately appear inside of their PayPal account.

 

In late June, TechCrunch reported GoFundMe raised more than $2 million in the previous month, and was on track to raise more than $37 million in total for 2012.

 

Now TechCrunch is reporting GoFundMe is raising about $3 million in campaigns every month, and is looking to accelerate its growth with a new partner program.

 

This program, known as Member Networks, will see GoFundMe partner with organisations whose members raise funds through the site.

 

GoFundMe already takes a 5% cut of all funds raised on its platform. Through this program, it will split that with the organisations it partners with.

 

This means GoFundMe and Member Networks will each receive 2.5% of the funds raised in associated campaigns.

 

So if someone raises $2000 through GoFundMe, both the partner and GoFundMe will receive $50.

 

“Our partners enjoy a win-win relationship with the community they serve,” the site says.

 

“By providing an opportunity for their audience to raise money on GoFundMe, partners are given a share of revenues derived from referred user accounts or transactions.”

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