Surge Reported in Crowdfunding Campaigns for Rent, Food, and Bills
The Washington Post reports on a surge in crowdfunding campaigns for basic essentials like rent, food and bills: Sites like GoFundMe, Kickstarter or even Facebook allow people and businesses to establish a cause — or set up a page laying out why they (or someone they are raising the money for) need money, and what the cash will go toward. After demand spiked last year, GoFundMe in October formalized a new category specifically for rent, food and bills. More than $100 million had been raised at that time year-to-date for basic living expenses in tens of thousands of campaigns during 2020 — a 150 percent increase over 2019. Both Vancouver-based FundRazr and U.K. crowdfunding website GoGetFunding report similar, though smaller, trends for last year, as well as honeymoon sites PlumFund and HoneyFund. But a year into the pandemic, some individual crowdfunding campaigns are reporting little success raising donations to cover basic expenses... Daryl Hatton, CEO and founder of FundRazr said when he browsed through the campaigns for basic expenses, most were getting little or no donations. "I saw a whole bunch of zeros," he said... GoFundMe hasn't seen a slow-down on activity related to basic expense campaigns. It "continues at an elevated rate," company spokesperson Bobby Whithorne said... The monthly bills category is now one of GoFundMe's largest and has made up 13 percent of all new fundraisers since it was added in October, the company said. The campaigns range from people who have lost their jobs or been evicted to those who have suffered a health emergency and need help paying rent, and more. Meanwhile fundraisers for food in January spiked 45 percent higher than a year before, the company said. On Facebook, people raised $175 million for coronavirus-related fundraisers on the flagship site and Instagram between early March to late December last year, said Elizabeth Davis, a product manager on Facebook's charitable giving team. GoFundMe makes money from many of these new campaigns it hosts and fosters — the company charges credit card processing fees, but primarily makes money from "tips" left on each donation. The tip level is automatically set at 12.5 percent of a donation, though donors can change the amount or decline to tip the company... Despite the surge in crowdfunding, it doesn't replace other societal safety nets, experts said. GoFundMe's chief executive Tim Cadogan published an op-ed in USA Today in February, calling for more robust government programs to help people and insisting to Congress that GoFundMe "can't do your job for you." The article also cites one research team's preliminary finding that more than 40% of coronavirus-related fundraisers on GoFundMe never received a single donation.
from Slashdot https://ift.tt/3sR6fYr
Read more of this story at Slashdot.
from Slashdot https://ift.tt/3sR6fYr
0 Response to "Surge Reported in Crowdfunding Campaigns for Rent, Food, and Bills"
Post a Comment