GoFundMe drops 5 percent personal crowdfunding fee and adds optional donations

Crowdfunding service GoFundMe is dropping the 5 percent fee that it collects from personal campaigns within the US today, adding an optional donation option in its stead. TechCrunch reports that GoFundMe timed this change around the holiday season, and that the company won’t say whether it’s a temporary or permanent decision. Payment processors still take 2.9 percent, but users can keep the rest of their funds. Organized charities and people outside the US will be paying the standard 5 percent, along with processing fees.

A GoFundMe spokesperson told TechCrunch that the company will “be closely monitoring our community’s success with the new structure and evaluating as needed.” It’s following a similar move by Facebook, which announced yesterday that it would drop a 5 percent fee on donations to nonprofits, although it’s still charging for private fundraisers. The change also brings GoFundMe’s model in line with competitor YouCaring, which makes money off tips and financial support from partners.