There are a variety of ways to raise money online for a cause from a group. For example, PayPal offers a easy way to collect money from a variety of people. But if you want to create a online destination for campaigns with social features, PayPal may fall short. This is where GoFundMe comes in. The site, which is built off of PayPal’s API, allows users to create their online donation page, share it with friends and family through Facebook, Twitter and email, and begin collecting money online. The first 50 readers who enter the promo code TECHCRUNCH on GoFundMe’s sign-up page will receive a free account.
GoFundMe connects directly to a user’s PayPal account and donation pages may also be embedded on a user’s existing blog or website. Users can track donations and manage performance (visits, etc) from the GoFundMe dashboard. Users are awarded a ‘grade’ based on how effectively they attract donors to their fund. Posting ‘Updates’ allows users to share news about their fund with their contacts to help attract more donors.
GoFundMe doesn’t charge any transaction fees – only a monthly subscription of $9. The only other fees incurred would be the 2.9% from PayPal. Of course, group fundraising online isn’t a new model. The startup faces a competition from a number of companies in the space, including WePay and Kickstarter.