“I have seen it all now”: People are calling out the tipping feature on GoFundMe for being unnecessary
Whether it's a hospital bill, funeral expense, or a freak accident with no insurance in sight, GoFundMe has become the digital go-to for financial emergencies.
But while most folks see it as a place of last resort, not everyone realizes it's still a for-profit company.
According to Growjo, GoFundMe’s estimated annual revenue sits at around $179.6 million. So when users find out that the platform encourages donors to leave a tip for the company—on top of donating to the person in need—it catches a lot of them off guard.
Redditor criticizes GoFundMe prompt to tip
That’s what happened to one Reddit user who posted in r/EndTipping.
“I have seen it all now,” wrote user @madchen444, attaching a screenshot of the tipping screen that popped up after donating.
The message reads: “GoFundMe has a 0% platform fee for organizers and relies primarily on the generosity of donors like you to operate our service.”
Then it gives donors four options: tip 2.5%, 5%, 7.5%, or enter a custom amount.
Wait… how does GoFundMe actually make money?
While it doesn’t charge the person running a fundraiser, the company does collect a 2.9% payment processing fee, along with 30 cents per donation.
So if someone raises $1,000 through ten $100 donations, GoFundMe still makes about $32 just from fees.
They also make money through tips. Back in 2017, the company introduced the tipping model to “keep the platform free” for organizers.
Still, that’s not sitting right with some folks online.
Commenters call the practice exploitative
One person under the original Reddit post said: “actually crazy they try to guilt trip people into giving them more money.”
On another thread, same subreddit, someone wrote: “Giving money to give money. That’s wild.”
Another added: “Acting like they don’t take a cut of donations. Disgusting.”
“They already take a portion of the money that you make, and they have the audacity to ask for a tip?!” asked a third. “Pfft.”
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