Originally published GoFundMe Launches ‘Giving Funds’ on by https://www.sdbj.com/technology/gofundme-launches-giving-funds/?utm_source=rss&utm_medium=rss&utm_campaign=gofundme-launches-giving-funds at San Diego Business Journal
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SAN DIEGO – “We want to create a new chapter in the future of charitable giving and transform what has traditionally been really tool reserved for high-net-worth individuals,” Chief Legal Officer, Executive Chairwoman and President of the GoFundMe Giving Fund Kim Wilford said.
On June 30, the San Diego-based technology company announced the launch of its newest product, the Giving Fund, which seeks to facilitate charitable giving for all demographics.
GoFundMe began laying the groundwork for this project years ago by setting up the independent 501(c)(3) public charity and donor-advised fund (DAF) sponsor, GoFundMe Giving Fund, and conducting market research.
“We thought that if we could bring a tool like this to life, it could really broaden access and hopefully help us elevate giving beyond the 2% of GDP, where it has been stuck for decades,” Wilford said. “That was worth doubling down and making the investment.”
Creating Access in the World of Giving
Giving Funds will operate out of GoFundMe’s existing interface, allowing the company to leverage its advanced technical features. There are no fees or barriers to the program, which is designed as a centralized place to plan, invest and grow donor funds, using one annual tax receipt. Through the interface, users can search over 1.4 million nonprofits for causes that speak to them.
According to Wilford, the platform also utilizes donor insights and artificial intelligence (AI) powered tools to personalize the user experience.
“In building this platform, we wanted to make generosity feel real-time, personal, intuitive and easy,” Wilford said. “This product is very digital-first…it’s super slick and easy to use. I would say it’s much more exciting than some of the traditional DAF platforms.”
Giving Funds operates with a $5 minimum contribution, but any amount deposited can be invested in four different exchange traded funds, kept in the original account or donated in custom sums to selected organizations.
“Think of this as sort of a savings account for giving,” Wilford said.
In 2006, the traditional DAF model was formally recognized in tax law. Currently, less than 1% of Americans have them, said Wilford. Traditional DAFs hold more than $250 billion donated for charitable purposes. However, a vast majority of those funds go undistributed yearly.
Wilford said that Giving Funds is differentiated by its robust search engine, design and inherent incentive to mobilize charitable funds.
“We did not build this product to make and sit on money,” Wilford said. “We built this product to spur generosity and unlock some of the wealth that we know is currently stored in these DAFs. We want to ensure that more help can be given than has been traditionally delivered over the last couple of decades.”
The new tool also aims to facilitate giving to hyper local causes, which makes a major impact in disaster relief, Wilford said. GoFundMe has enabled the donation of $40 billion since its creation in 2010, “filling a major gap that currently exists in the market,” said Wilford.
“We’re uniquely positioned to be reshaping modern philanthropy and making long-term charitable giving easy and rewarding for everyone,” Wilford said.
Impact Driven by Growth
In 2022, GoFundMe acquired nonprofit fundraising software company Classy in an all-equity deal. The partnership, said Wilford, was a major step towards GoFundMe’s mission of increasing access to giving and creating a “dynamic philanthropic marketplace.”
“We have learned a lot from their involvement with thousands of nonprofit organizations,” Wilford said. “We’ve tried to find a way to help giving become more intelligent, not just for the donor but also for the nonprofit organization, by helping them understand who their customers are.”
Last year, GoFundMe also expanded by entering the markets of Mexico and Puerto Rico.
While no employees have been added since the launch of Giving Funds, Wilford said that as the product grows, they may hire more professionals in the compliance function.
“Working at GoFundMe is a privilege,” Wilford said. “We do everything we can every day to help people help one another and execute on our mission. Launching Giving Funds was a huge professional highlight. I am simply thrilled at what this will mean for the marketplace we’re building and for helping generosity thrive.”
GoFundMe
FOUNDED: 2010
CEO: Tim Cadogan
HEADQUARTERS: San Diego
BUSINESS: Technology
EMPLOYEES: About 800 globally
REVENUE: More than $40 billion raised for individuals and nonprofits since 2010
WEBSITE: gofundme.com
NOTABLE: GoFundMe has mobilized support in response to more than 100 global disasters in the past five years alone. This crisis response makes up about 10% of GoFundMe’s total business.
Born and raised in San Diego, Madison takes great pride in local storytelling. Her coverage at the San Diego Business Journal includes tourism, hospitality, nonprofits, education and retail. An alumna of San Diego State University’s journalism program, she has written for publications including The San Diego Union-Tribune and The San Diego Sun. At the 2024 San Diego Press Club awards, Madison was recognized for her exemplary profile writing. She was also a speaker for the 2023 TEDx Conference at Bonita Vista High School. When she’s not working on her next story, Madison can be found performing music at a local restaurant or on one of San Diego’s many hiking trails.
Originally published San Diego Business Journal
