Family Surprised by $330 Charge on GoFundMe Donation Due to Tipping

A family in San Francisco was taken aback after discovering an additional charge of $330 on their credit card following a donation to a GoFundMe page. The unexpected fee arose from the platform’s optional tipping feature, which has drawn criticism for its lack of clarity.

Brenda, whose nephew is battling stage 4 pancreatic cancer, and her husband donated $2,000 to support him. Upon reviewing their credit card statement, they were shocked to see the extra charge. “We donated and then we checked our Costco Visa account, and it showed an extra $330! We didn’t donate that,” Brenda remarked. She expressed frustration over the lack of notice regarding the tipping option during the donation process.

Brenda’s daughter, Cyndi, assisted her parents in disputing the charge with GoFundMe. “I was upset and felt like my parents were taken advantage of… not just them. Anyone that has done this,” Cyndi stated. She highlighted the challenges in reaching GoFundMe’s customer service, noting that communication is limited to online requests for refunds.

After a review process, GoFundMe refunded the tipping charge, which amounted to 16.5% of the original donation. Nevertheless, Cyndi raised a critical question: why isn’t tipping an opt-in feature instead of a preset option?

In response to inquiries, GoFundMe confirmed that the optional tipping feature will remain preset for individual fundraisers, non-profit campaigns, and direct donations to verified organizations. Krista Lamp, the Senior Director of Nonprofit Communications at GoFundMe, explained, “These completely optional contributions really make it possible for us to offer our fundraising tools, our customer support, and support our global team of trust and safety experts.”

In a recent statement, GoFundMe clarified its operational model: “GoFundMe does not charge a fee to start a fundraiser. Instead, we rely on optional tips from donors to power the platform.” They emphasized that the vast majority of donors successfully navigate the tipping feature, often opting to adjust it to zero. “This model is unique because it lets donors decide how valuable our service is and tip accordingly,” the company added.

Cyndi voiced her concern over the ethical implications of the tipping model, suggesting that it preys on individuals facing difficult circumstances. Viewers have echoed similar sentiments, with one user commenting, “I’m a believer in opt-in… not opt-out.”

In addition to the optional tipping, GoFundMe deducts transaction fees from the beneficiaries, which the company states are necessary to cover payments to processors for secure fund transfers. The transaction fees are set at 2.9% plus $0.30 for individual fundraisers and 2.2% plus $0.30 for non-profit fundraisers in the United States.

For those who inadvertently leave a tip, GoFundMe advises reaching out to their customer service team for a refund. As the debate over the tipping model continues, many users remain hopeful for more transparent practices in the fundraising landscape.

7 On Your Side, a consumer advocacy service, continues to monitor this situation and encourages individuals with consumer-related issues to reach out for assistance.