GoFundMe bet social media can unlock Gen Z giving

James Pollard, MDT/AP

GoFundMe is introducing new tools to make it easier to share causes across social media, aiming to appeal to younger, digital-native generations. The company hopes these updates will enhance the donation process and better connect traditional nonprofits with Gen Z, a demographic that prefers direct contributions over institutional giving. New features include fundraising widgets for video game streamers, personalized profiles for users to highlight their philanthropic interests, and an integrated donation button on Instagram.

“We play a really important role helping people ask for help and give help in the world,” GoFundMe CEO Tim Cadogan told The Associated Press. “We want to make sure that people can communicate and express that in the places where they spend time.”

These updates reflect GoFundMe’s recognition of Gen Z’s social media habits as a potential way to drive charitable contributions. A recent GoFundMe survey revealed that Gen Z (ages 12-27) is more likely than older generations to share causes or fundraisers online, with half reporting they do so at least once a week. Furthermore, 41% said social media content influenced them to support a cause.

GoFundMe allows users to create fundraising pages, where personal networks and strangers can contribute to large expenses. The platform is frequently used for necessities like rent or emergencies, and the company charges a 2.9% transaction fee plus 30 cents for each donation.

GoFundMe isn’t alone in this space, but it has positioned itself as the largest crowdfunding site, having generated $30 billion since 2010. In 2022, the company expanded its influence by acquiring Classy, a fundraising platform for nonprofits.

This latest move signals GoFundMe’s entry into a market dominated by Tiltify, which specializes in fundraising through livestreams. On Monday, GoFundMe launched in-video fundraising widgets for streamers on platforms like Twitch and Instagram Live. Viewers can donate via a QR code, and a tracker shows progress toward the campaign goal.

The company’s recent developments also serve nonprofit partners. A Meta partnership launching on Instagram on Oct. 31 will allow organizers in the U.S., Canada, the UK, Ireland, and Australia to integrate fundraisers into Instagram Stories with a polished look to help campaigns stand out. Nonprofits will gain access to contributor data, enabling them to better nurture donor relationships.

“It’s equally important for us to support nonprofit organizations who are often working on really big, deep structural issues,” Cadogan said.

GoFundMe is also enhancing user profiles. Starting Nov. 13, individuals and organizations can personalize their accounts with more details about their charitable giving. While these pages can be made private, Cadogan hopes public profiles will inspire others to act. Users can pin fundraisers or nonprofits to their profiles, along with a description of why the cause matters. Unique links will track the collective impact of their efforts.

If LinkedIn showcases professional accomplishments, Cadogan envisions GoFundMe Profiles as a place where people express their altruistic side. “We hope that over time that becomes the place on the internet that you express your altruistic side of your identity,” he said.

Shannon Farley, Executive Director of Fast Forward, believes organizations must engage with young people on platforms where they spend time. Farley’s organization helps nonprofits scale their impact and sees online spaces as a “real opportunity” for digital-first nonprofits. [Abridged]

James pollard, MDT/AP