The rise of online fundraising in a digital age

Marketplaces once connected only buyers and sellers, but today, online platforms are building bridges between givers and those in need. Among them, one stands apart for its reach and mission. Instead of striking deals, this platform helps people support each other in moments of hardship, hope, and generosity. From rebuilding homes after natural disasters to paying unexpected medical bills, it has become a cornerstone of modern digital giving.

Since its start in 2010, GoFundMe has funneled more than $30 billion toward personal and community causes. Families, pet owners, athletes, small businesses, and nonprofits have all turned to it for help when traditional sources fall short. The scale is striking: in 2024 alone, donations were made at a pace of two per second, with an average gift of $77. More than 65 million donations were recorded, including 42 million to individuals and 23 million to nonprofit groups.

CEO Tim Cadogan, who took the helm in 2020, sees the platform’s success as part of a much larger story of human connection. “The theme that we focus on is, How do we help people help each other?” he explains. “Of course, that is a contemporary problem — but it’s also an ancient thing, as human beings are social beings. We need each other, and we get through life by helping each other.”

Operating in 20 countries with about 800 employees, the San Diego–based firm has quietly reshaped how people think about giving. It estimates that one in three Americans has either donated to or benefited from its services. Yet, unlike most businesses of its scale, it does not depend primarily on fees. While each donation carries a 2.9% transaction charge plus 30 cents to cover secure transfers, the company mainly runs on voluntary tips from donors who want to keep the system thriving.

The model reflects a deeper truth about the platform’s culture: it is designed to lean into trust, transparency, and shared responsibility. That trust becomes even more important as more of life, including fundraising, unfolds online.

Cadogan brought his background in startups and consulting to the role just as COVID-19 began disrupting lives around the globe. The pandemic accelerated the need for online fundraising, and he guided the company through an important milestone: the 2022 acquisition of Classy, a fundraising software provider serving nonprofits such as the Salvation Army and World Central Kitchen.

The merger was intentional. “I thought this combination of personal fundraising and organizational fundraising should and could be very powerful,” Cadogan says. “The key intersection is that organizations more and more want to embrace and empower the people that care about them to advocate on their behalf.”

The platform’s success relies not just on individual generosity but also on the ripple effect of social sharing. Every donation link carries a unique tracker, allowing the company to study how campaigns spread across networks. The data reveal powerful insights: one small act can inspire thousands more.

A striking case involved Hurricane Helene relief. A donor gave $5 and encouraged her friends to do the same. That simple nudge grew into more than 4,000 contributions totaling over $100,000. Sometimes celebrities take notice, and their involvement magnifies the reach even further.

Taylor Swift has given tens of thousands of dollars through the platform, including $26,000 to two women who lost their jobs and $10,000 to a young fan battling bone cancer. These viral moments highlight a modern twist on age-old philanthropy: generosity amplified by networks, personalities, and digital reach.

The company continues to expand beyond traditional campaigns. One innovation is a streaming widget that allows influencers, gamers, and everyday users to embed fundraisers directly into social media posts. This integration blends personality with cause, a mix that resonates strongly with younger audiences.

Generation Z, in particular, often turns to online communities for inspiration and connection. Recognizing that, the platform recently introduced personalized profiles. These allow users to showcase the causes they care about most, building communities around shared values. “We’re really leaning into expressing your philanthropic identity and then building community on that,” says Cadogan.

Behind the scenes, artificial intelligence now plays a central role in helping campaigns succeed. Drawing from more than 30 million past requests, AI tools suggest titles that are more likely to inspire donations. It also nudges organizers to share updates or thank supporters — reminders that encourage continued giving.

The technology even helps set realistic goals, an area that often determines whether campaigns succeed or stall. AI weighs location, campaign type, and historical patterns to suggest targets that feel achievable. Cadogan notes, “There’s a lot of psychology in how you set the goal. Generally, it’s better to start with a lower number and move it so you have your real ultimate goal.”

He applied that strategy to his own campaign for Sierra Made Search and Rescue, a nonprofit where he volunteers. Adjusting his goal 15 times, he rallied 121 donors, ultimately raising $25,205 — surpassing his final target of $22,500.

While technology drives efficiency, the platform never loses sight of the human element. Stories, gratitude, and connection still power generosity. Campaigns that share authentic updates, include photos, or tell personal stories tend to attract more support. Donors want to know that their contributions matter. In this way, the platform reflects a larger shift in philanthropy. Giving is no longer just about writing a check. It is about shared identity, community, and the emotional rewards of helping someone in need.

Cadogan believes this evolution is a natural extension of human nature. Helping one another has always been essential, and digital platforms simply provide new ways to do it at scale. “We’re helping figure out ways to make help relatable, effective, and trustable in a world in which more and more of our lives are happening online, for better and for worse,” he says.

As more people turn to online fundraising, questions about sustainability and trust will continue. The company’s emphasis on transparency, community building, and AI-driven tools suggests that it is preparing for a future where generosity flows more easily across borders and cultures.

What began as a way for friends and family to pitch in has grown into a global network of giving. In that sense, it mirrors humanity itself — resilient, adaptable, and deeply connected.

Note: The article above provided above by The Brighter Side of News.

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