Disaster often strikes when you least expect it. Then, your left with a financial emergency, and may not have many places to turn to for help.
Sure, you could try getting a loan, but that leaves you with debt. And, if you’re already short on funds, is that really wise?
Instead, there’s an online resource might be your ideal answer. It’s called GoFundMe.
What is GoFundMe?
GoFundMe is a website that allows people to reach out for financial assistance for almost any need. If you need help, you can open an account and start a campaign.
Your campaign includes the details of what you need and why you need it. For example, you could let people know you need $2,000 for emergency car repairs or $5,000 for a medical procedure.
The site serves as a hub, giving you a platform to share your story and receive donations. Like any such site, GoFundMe does have fees, but most consider them minimal.
Since 2010, more than $4 billion in donations have come through GoFundMe, with over 40 million donors participating in campaigns.
How Do You Get Money with GoFundMe?
Once your campaign begins, people can donate to your cause. They simply select an amount to give, provide payment details, and send the money on its way.
The funds are held by GoFundMe in an account until you withdraw them, so they are always safe. Unlike some other platforms, you don’t have to hit your target to receive the funds. The process is secure as well, making it preferable to some other forms of fundraising.
However, you can’t necessarily expect your campaign to be successful without a little work. GoFundMe touts itself as a “social fundraising platform,” and the social part mainly falls into your hands. This means you need to share your campaign or have someone else share it on platforms like Facebook and Twitter. Hopefully, people will notice your story and feel like donating.
People can also search for your campaign on the GoFundMe site, but it isn’t wise to assume that random strangers will stumble on your page and decide to give. Of course, this can happen. But those who are proactive are more likely to be successful.
Why Use GoFundMe?
If you have a large social or familial network, creating a GoFundMe campaign is a great way for everyone to chip in. It creates a central location for donations, and everyone can see how close you are to your goal.
Plus, there’s always a chance that people you don’t know will donate, too. Some campaigns have even gone viral, resulting in donations well above the original request. While such attention is rare, it can happen. You never know if your story will resonate unless you try.
While some question GoFundMe profiting off of others misfortune, the fee structure is simple and fairly low. Ultimately, the company has to cover its processing and administrative costs, and that’s the easiest way to get it done.
Also, starting a campaign doesn’t cost anything but some time and attention. So, if you’re in dire straits, consider trying GoFundMe to help during your financial emergency.
Ready for more from Suburban Finance? Check out these great articles:
- 5 Things You Can Do to Save an Emergency Fund
- Financial Planning for Your Emergency Expenses
- Take Control of Your Finances
Tamila McDonald has worked as a Financial Advisor for the military for past 13 years. She has taught Personal Financial classes on every subject from credit, to life insurance, as well as all other aspects of financial management. Mrs. McDonald is an AFCPE Accredited Financial Counselor and has helped her clients to meet their short-term and long-term financial goals.
