GoFundMe introduces Giving Funds to simplify charitable giving by breaking traditional barriers

From Yahoo Finance: 2025-06-30 08:11:00

GoFundMe CEO Tim Cadogan faced complications while fundraising for a wilderness rescue team. Friends tried to donate using a donor-advised fund, with delays in processing. Cadogan introduced Giving Funds to streamline donations and break the perception of GoFundMe as just a crowdfunding site, aiming to increase charitable giving beyond 2% GDP.

Donor-advised funds have grown among high net worth individuals for tax-efficient grantmaking. Companies like Fidelity Charitable and Daffy are lowering barriers for average givers. The IRS has proposed penalties for misuse, prompting discussion of deadlines for disbursements. GoFundMe’s Giving Funds offer no minimum balances, free transactions, and investment options.

Cadogan hopes Giving Funds will democratize charitable giving, emphasizing their ease of use. Critics scrutinize DAFs for tax benefits before donations, leading to IRS proposals and congressional consideration for regulation. GoFundMe’s focus on community and simplicity aims to inspire more giving and track donation progress in real-time.

Direct Relief CEO Amy Weaver sees GoFundMe’s entry as a game changer for DAFs, potentially unlocking additional funds. While traditionally used by the wealthy, DAFs are positioned as a savings account for good works, with GoFundMe appealing to a broader demographic. The goal is to enhance the ease and impact of charitable giving for all donors.

Read more: GoFundMe is refurbishing a little-known financial tool in a bid to supercharge everyday giving