Family Surprised by $330 Charge from GoFundMe Tipping Feature

A family in San Francisco recently expressed shock after discovering an unexpected charge of $330 on their credit card related to a donation made through GoFundMe. The incident highlights concerns surrounding the platform’s optional tipping feature, which has received criticism for its lack of transparency.

Brenda and her husband donated $2,000 to a GoFundMe page created for her nephew, who is battling stage 4 pancreatic cancer. After making the donation, they noticed an additional charge on their Costco Visa account. “We donated and then we checked our account, and it showed an extra $330. We didn’t authorize that,” Brenda explained.

The couple was unaware of the optional tip that is automatically set when making a donation. Brenda’s daughter, Cyndi, took action to dispute the charge with GoFundMe. “I was upset and felt like my parents were taken advantage of,” she said. She noted the difficulty in contacting the company directly, as communication is primarily conducted online.

Eventually, after a formal dispute, GoFundMe refunded the tipping amount. Cyndi raised a critical point regarding the tipping model: why is the option set by default rather than requiring users to opt in?

GoFundMe addressed these concerns, confirming that the optional tipping feature will remain preset for fundraisers benefiting both individuals and nonprofits. Krista Lamp, the Senior Director of Nonprofit Communications at GoFundMe, stated, “These completely optional contributions really make it possible for us to offer our fundraising tools and customer support.”

In a subsequent statement, GoFundMe emphasized that they do not charge a fee to start a fundraiser, relying instead on tips from users. The company asserted that the majority of donors interact with the tipping slider and often adjust it to zero. “This model is unique because it lets donors decide how valuable our service is and tip accordingly,” the statement read.

Despite these assurances, many users have voiced their dissatisfaction. Cyndi remarked, “To me, it sounds like they’re kind of preying on people that are going through hard situations, and that’s wrong.” User Dave Dornlas echoed this sentiment, advocating for an opt-in rather than an opt-out system.

In addition to the optional tipping, GoFundMe also deducts a transaction fee from donations. For individual fundraisers, this stands at 2.9% plus $0.30, while nonprofits are charged 2.2% plus $0.30. GoFundMe noted that those who inadvertently leave a tip can contact customer service for a refund.

The ongoing debate surrounding the tipping model raises important questions about consumer transparency and ethical fundraising practices. As GoFundMe continues to adapt its policies, users remain vigilant about their contributions and the platform’s charges.