GoFundMe has introduced a new service that lets you buy digital gift cards for your loved ones and donate to your favorite nonprofits during the holidays.
Gift cards start at $5 and come in a variety of themes and purposes, including birthdays, Christmas, Hanukkah, and Ramadan, as well as cards for animal lovers, cancer fighters, and conservationists.
However, these cards function differently than traditional gift cards. They operate through Giving Funds, GoFundMe’s fee-free donor-advised funds (DAFs). The platform, launched in June, marks the company’s first foray into DAFs and aims 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 a recipient claims a gift card, the amount is deposited into their personal giving fund. You can then choose to donate now or grow your funds tax-free within your account, giving you the opportunity to contribute more later. People who purchase gift cards receive a tax deduction.
Recipients can choose from 1.4 million nonprofit organizations on the platform, from local food banks to global organizations that provide disaster relief, support youth programs, and promote animal welfare.
GoFundMe’s new gifting strategy may appeal to users for several reasons. For example, instead of giving a general gift, you can support a loved one in a cause that really matters to them, such as a local soup kitchen that helps feed families during Thanksgiving, when many people struggle to put food on the table.
Plus, nonprofit gift cards are a great way for older generations to teach younger family members the importance of giving back. That creates a conversation about the different causes and their real impact.
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In May, GoFundMe celebrated its 15th anniversary and announced that it had raised more than $40 billion worldwide. The company also launched GoFundMe Pro, a platform aimed at helping nonprofits raise money. The new platform introduces AI tools designed to help nonprofits collect donations.
