This month GoFundMe announced the launch of its new GoFundMe Giving Fund which provides a new way for people to donate to charity with the benefits of a donor-advised fund (DAF) but without the usual barriers. Instead of giving directly to a nonprofit right away, your donation goes into a special fund where it can grow tax-free and be granted to charities whenever you’re ready. This makes it easier for everyday donors to manage their giving, get an immediate tax deduction, and plan their philanthropy over time—all in one simple platform.
Democratization of a Giving Tool
In the past, DAFs have generally been available only to high dollar donors who maintain DAF accounts at community foundations or with the nonprofit arms of brokerages like Fidelity Charitable, Vanguard Charitable, or Schwab Charitable. GoFundMe’s new Giving Fund provides DAF access to everyday donors—no minimum balance, $5 minimum contributions, zero management fees—democratizing a tool once reserved mostly for the wealthy.
How DAFs Work: Downsides
But hold your horses. There are things to consider before deciding if this is the right platform for you, as there are some risks and potential downsides.
Donations you make through the GoFundMe Giving Fund platform go into a pooled charitable account called a donor-advised fund, or DAF—not directly to the nonprofit you have in mind. Although you can recommend a grant at any time to an eligible 501(c)(3) public charity, GoFundMe’s board retains final authority and may approve, redirect, or delay your recommendation.
This setup reflects standard DAF practices: you get an immediate tax deduction when you deposit funds, and while donations can be invested and grow tax-free, they may also be held indefinitely. That said, GoFundMe does include safeguards—if no grants are made for two years and account holders are unresponsive, remaining balances may be redirected to other charitable purposes.
While in practice most DAF sponsors tend to defer to the recommendations of their DAF donors when deciding which charities will receive cash distributions, they are not legally required to do so. In theory they could choose to hold onto your donations for longer than you intended or distribute your donated funds to charities other than the ones you recommended. The reason that the latter is not common practice is that most people would discontinue using DAFs if DAF sponsors did not generally honor donors’ wishes. However, if you are a donor who prefers zero risk in this regard, it is best to avoid using DAFs to facilitate your donations to charities and give directly instead.
Your Donation Could Lose Value
When funds in your GoFundMe Giving Fund are invested, the interest or investment gains stay in your account and become part of your charitable balance—they don’t go to GoFundMe for personal profit. But there are risks. If your donations are invested and then lose value, this will reduce the amount of funds available for you to recommend for distribution to eligible charities. It is important to note that GoFundMe offers the option to opt-out of investing what you donate as to not expose your original donation amount to potential gains or losses.
Hypothetical $100 Donation
The below chart provides an example of what could happen to your $100 donation if you choose to invest your donations while they sit in the fund versus decline to invest them.
| Scenario | Day 1 (Donation) | Month 3 (Market Down or Up 20%) | Max Gift You Can Recommend |
|---|---|---|---|
| Cash (not invested) | $100 | $100 | ✅ $100 |
| Invested – market loss only | $100 | $80 | ❌ $80 |
| Invested – market growth only | $100 | $120 | ✅ $120 |
No Takebacks, No Givebacks
As is true of all DAFs, once you donate the money into the GoFundMe Giving Fund you cannot change your mind and get a refund. It is important to understand that the balance of funds you contributed into your GoFundMe DAF account legally no longer belong to you. If you make a $1,000 donation into the account with the intention of recommending charities to donate it to at a later date, and then fall on hard times in the meantime and want this money back, you will be painfully out of luck.
Fees
| Fee Type | Amount | Goes to |
|---|---|---|
| Administrative Fees | $0 | — |
| Payment Processing Fee | 2.2% + $0.30 per card donation | Covers transaction processing |
| Investment Expense Ratio | Varies (built into ETF returns) | Assigned fund managers |
| Optional Tip | Donor-selected (0%–100%+) | GoFundMe operations (optional) |
❌ Zero administrative fees — GoFundMe doesn’t charge to maintain your account at any balance level.
✅ Payment Processing Fees — Standard credit/debit transaction fee: 2.2% + $0.30 per contribution. If you contribute by card, this cost is deducted before funds enter your DAF—not a GoFundMe markup, but essential for secure payment handling.
✅ Investment Management Fees — If you invest your balance, the chosen ETF or fund incurs a typical expense ratio, reflecting regular operating costs. These are built into the fund’s performance, not billed separately—GoFundMe does not collect extra fees on investment gains.
Conclusion
GoFundMe’s Giving Fund brings the power and flexibility of donor-advised funds to the general public, making charitable planning more accessible than ever before. By offering low fees, tax-deductible contributions, and optional investment growth, it opens the door for donors of all income levels to engage in long-term, strategic giving. But with that opportunity comes the responsibility to understand how DAFs work—including the fact that donations are not guaranteed to reach a specific charity, and that funds can sit ungranted for extended periods. As the need for nonprofit support grows alongside cuts to public safety nets, tools like the Giving Fund have the potential to reshape modern philanthropy—for better or worse—by changing not just how we give, but who gets to decide when and where that generosity flows.
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