For those trying to assist victims of the wildfires in California, an unexpected issue may arise while using crowdfunding platforms: Should they also tip the platform itself?

If you decide to donate through GoFundMe, a popular crowdfunding service, you may notice a tip option appearing alongside your donation amount. This tip supports GoFundMe, but you have the ability to change it to a lower amount or even eliminate it entirely.

According to GoFundMe, “We rely on optional tips from donors to ensure our top-notch customer support, and to enhance safety and technology for fundraising efforts,” as stated in their announcement.

This situation caught attention on Saturday when L.A. County Supervisor Kathryn Barger expressed her astonishment at being asked for an extra $95 on top of her $500 donation to a friend’s GoFundMe campaign after they lost their home due to the wildfires.

She remarked, “I couldn’t believe it when I was charged (that amount) just to donate $500,” during a news conference addressing the fires.

GoFundMe assured YSL News that they would contact Barger since they do not impose such high charges; they only request optional tips. “The only fee from GoFundMe is a standard transaction fee of 2.9% plus $0.30 per donation, which enables us to pay our payment processors and securely transfer funds,” the company clarified to YSL News.

Why is there a tip option on GoFundMe?

When you visit the GoFundMe website to make a donation, after specifying your donation amount, a tip suggestion will pop up.

The suggested tip may vary, but you have the flexibility to adjust the tip from 0% up to 30% or select the “Enter custom tip” feature.

GoFundMe promotes a “0% platform fee” for campaign organizers and heavily depends on the kindness of donors to sustain its operations. If you choose not to tip, you will see a note that reads, “Opting out means you play a vital role in enhancing services for other donors and initiatives you back.”

In November 2017, GoFundMe introduced optional tipping alongside a policy of zero fees for new personal fundraising efforts to assist with covering its operational costs.

What portion of my GoFundMe contribution reaches the recipient?

GoFundMe deducts 2.9% plus 30 cents from each donation as a handling fee. Hence, if you contribute $100, the total deducted would be $3.20 (which includes $2.90 and $0.30), leaving $96.80 to go directly to the recipient.

While GoFundMe is a nonprofit crowdfunding service, it operates through GoFundMe, Inc., a profit-driven company. “GoFundMe, Inc. is dedicated to supporting GoFundMe.org by sharing its assets, financial resources, tools, and workforce to ensure GoFundMe.org can effectively gather and distribute cash grants to individuals and organizations at a low cost,” explains their website.