GoFundMe is expanding its role in the charitable giving landscape with the launch of “Giving Funds,” a new take on donor-advised funds (DAFs) designed to make long-term philanthropy more accessible to everyday donors, the Associated Press reports.
The rollout aims to simplify how users plan, manage, and distribute charitable contributions — a departure from the platform’s typical one-off crowdfunding campaigns.
GoFundMe CEO Tim Cadogan announced the initiative Monday, describing the tool as a more inclusive and user-friendly approach to strategic giving. The move comes amid growing interest in DAFs — financial vehicles that allow donors to contribute, invest, and eventually distribute funds to nonprofits, often with favorable tax treatment. Traditionally used by wealthier individuals through institutions like Fidelity Charitable or Schwab, DAFs have faced criticism for allowing funds to sit unused indefinitely.
“We’re trying to reframe giving from something occasional to something integrated into people’s financial lives,” Cadogan said. “Our goal is to help people help each other more intentionally.”
GoFundMe’s Giving Funds are designed to lower barriers to entry. There are no minimum balance requirements or management fees, and donations can begin at just $5. Users can fund their account via bank transfer or direct deposit with no fees. Credit card contributions are also free through the end of the year, after which standard transaction fees will apply.
Once funded, users can choose to invest their contributions in exchange-traded funds managed by well-known firms like Vanguard, BlackRock, and State Street Global Advisors. Funds can be distributed at any time to more than 1.5 million registered charities already on the GoFundMe platform.
Unlike traditional DAFs, the interface is designed to be more dynamic. Giving Funds holders will receive personalized prompts highlighting local nonprofits, trending causes, or friends’ preferred charities — a strategy Cadogan says will encourage active engagement and more timely disbursements.
The introduction of Giving Funds puts GoFundMe in competition with more than 1,000 DAF providers. While legacy firms have been lowering minimums and fintech startups have emerged with simplified offerings, Cadogan believes GoFundMe’s existing user base and brand recognition give it a unique advantage — particularly among younger, smaller-dollar donors.
“The product is intentionally not branded as a ‘donor-advised fund,’” he said. “We want people to think of it as a simple tool to manage their charitable giving, not a complicated financial vehicle.”
Still, the broader DAF market remains controversial. Critics argue that while donors receive immediate tax deductions, the funds can be held indefinitely, delaying support for nonprofits. The total assets held in DAFs surpassed $250 billion in 2023, according to the National Philanthropic Trust. Proposals for regulatory changes — including disbursement deadlines — are currently under consideration by both the IRS and Congress.
GoFundMe hopes to inspire more regular giving by allowing users to set annual donation goals based on income or fixed amounts. Contributions are tracked throughout the year to support budgeting and streamline tax documentation.
According to Jeff Williams of the DAF Research Collaborative, tools that simplify the donor experience — such as real-time tracking and accessible interfaces — are increasingly important.
“There’s growing evidence that people want giving to be as easy and integrated as their other financial planning,” he said. “GoFundMe’s entry into this space adds to that momentum.”
Direct Relief CEO Amy Weaver called the move “a game changer.” Her organization, which distributes medical supplies worldwide, has received over $116 million from DAFs in the past five years. She sees Giving Funds as an opportunity to reach a broader, more diverse donor base.
“If GoFundMe can make donor-advised funds relevant to people making smaller, recurring gifts, that could unlock a lot of new philanthropic capital,” Weaver said.
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