Crowdfunding is first experience of giving for nearly a quarter of Australians, says report 

About 23% of Australians surveyed by crowdfunding platform GoFundMe said that using the online tool has been their first experience of giving and that 40% of those went on to become ‘more charitable’ afterwards. Global CEO Tim Cadogan spoke with Giving News following a roundtable hosted by Philanthropy Australia and the platform in Sydney. 

Tim unpacked the research that GoFundMe undertook to mark its 10^th anniversary since launching in Australia and distributing more than $1.1bn to good causes. More than $40bn has been donated globally through the platform since its inception in the US 15 years ago. 

The roundtable in October was attended by more than a dozen Philanthropy Australia members and was an opportunity to discuss issues across the giving landscape, with insights from a leader whose organisation is shaping the way people interact with giving through technology. 

Other key findings from the survey of 1,000 Australians included: 

• Among Gen Z, almost 40% said that their first experience of charitable giving was through GoFundMe 

• The fact that 40% of Australians who donated for the first time on GoFundMe went on to become more charitable suggests the platform plays a ‘gateway to giving’ role  

• A third (37%) of donors have donated more than once 

• Half of Gen Z say they’re sharing a fundraiser or cause they care about with their online networks at least once per week 

• 1 in 3 Australians have used GoFundMe to help each other. 

There was a rich discussion between Tim and others in the GoFundMe team, including Nicola Britton, Senior Director for Australia, and the Philanthropy Australia members, who dug into the findings for more detail and clarification about how the model works. 

Tim discussed opportunities for partnership in moments of crisis, from local natural disasters to global emergencies, insights into the evolving role of peer-to-peer fundraising and the critical voice and influence of Gen Z in shaping the future of giving. He said he wasn’t surprised by how many people who used GoFundMe for the first time were going on to give again. 

“People use GoFundMe for the first time because they’re often helping a friend or relative, so it’s a very personal connection. We know that that moment and experience of giving feels good and you want to do it again, so repeat behavior of giving makes sense.” 

He highlighted that it is not just the funds that are raised that have an impact on people’s lives and well-being, it’s also the emotional and psychological boost that people receive from receiving help and know that others, including strangers, care. 

“When people reach out for help on GoFundMe, or someone does on their behalf, it’s often because something difficult has happened. People can feel very alone and emotional in that situation.  

“So when they see 10, 20, 35, 60 and maybe even 100 people have given to them, universally what people tell me is that it makes them feel uplifted, not alone anymore, supported and cared for. That psychological strength is incredibly important alongside the financial support. And it’s hard to put a value on that,” said Tim. 

GoFundMe recently faced challenges in the US regarding the creation of fundraising pages on behalf of charities, issuing an apology to acknowledge the confusion and committing to better collaboration with the sector. The National Council for Nonprofits said it was “pleased with GoFundMe’s openness and self-reflection on the matter”.

Tim confirmed that GoFundMe is working through the feedback with partners in the US, and that these challenges do not impact Australian charities. “We know it’s important to maintain and build strong and trusted relationships with all our charity partners, something we’ve always prioritised in Australia,” he said.

GoFundMe can be a great research tool for traditional funders because many small, “hyper local” charities use the platform to fundraise too, he said. “If you’re looking for interesting, lower-profile organisations working very, very locally, it may be a rich source of discovery.” 

Tim also cited the role the platform plays in supporting community resilience. “What we see is that a town or village knows best what residents need, so they can fundraise for something quite specific, such as a new water tank for the fire station.” 

The biggest surprise for Tim since running the platform is seeing the “sheer variety of what people fundraise for”.  

“From the most serious to the most lighthearted, it’s an infinite range and that’s the emotional power of the platform. You can see the facts and figures, but it’s not until you sit with people and hear about what they’re fundraising for means to them, that you feel humbled.  

“Helping people help each other is possibly the most important thing you can do in the world. We are fortunate to be in a position where we can use our ability as technologists to unlock an ancient instinct in all of us. 

“We are a social species and we need each other. Helping one another is absolutely integral to that.” 

View the presentation slides.

Main image: (L-R) Laura Cochrane, Executive Director, Membership and Engagement and Bella Conyngham, Director Engagement, NSW & ACT at Philanthropy Australia with Nicola Britton, Senior Director for Australia and Tim Cadogan, Global CEO at GoFundMe.