GoFundMe has introduced a new offering that allows you to purchase digital gift cards for your loved ones, enabling them to donate to their favorite nonprofit organizations during the holidays. (Note that the product has yet to launch.)
The gift cards start at $5 and come in a variety of themes and causes, including Birthday, Christmas, Hanukkah, and Ramadan, as well as cards for animal lovers, cancer fighters, and nature protectors.
These cards work differently than traditional gift cards, though. They operate through Giving Funds, GoFundMe’s fee-free donor-advised fund (DAF). Launched in June, this marked the platform’s first entry into DAFs, aiming to make them accessible to everyday donors. Historically, donor-advised funds have been out of reach for most people due to high minimum contributions and fees.
When recipients claim the gift card, the amount is deposited into their personal Giving Fund. They then have the option to donate immediately or allow the funds to grow tax-free in their account, which gives them the opportunity to contribute even more later. The person who purchased the gift card receives a tax deduction.
Recipients can choose from 1.4 million nonprofits on the platform, ranging from local food banks to global organizations that provide disaster relief, support youth programs, and promote animal welfare.
GoFundMe’s new gifting strategy could appeal to users for several reasons. For example, instead of giving a generic gift, people can help their loved ones support causes that truly matter to them, such as a local soup kitchen that helps feed families during Thanksgiving, a time when many people struggle to put a meal on the table.
Plus, a nonprofit gift card can also be a great way for older generations to teach younger family members about the importance of giving back. It opens up conversations about different causes and the real impact they have.
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In May, GoFundMe celebrated its 15th anniversary and announced that it had surpassed $40 billion raised globally. The company also launched GoFundMe Pro, a platform aimed at helping nonprofits with fundraising. The new platform introduced AI tools designed to make it easier for nonprofits to ask for donations.
This story has been updated after publication.
