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.

Crunchbase

• GOFUNDME

Company: GoFundMe

Website: gofundme.com

Launch Date: March 1, 2010

GoFundMe was launched on May 10, 2010 by California Product Shop, Inc co-founders Brad Damphousse and Andrew Ballester. GoFundMe is a personal donation website that makes it incredibly easy for people to raise money online for the things that matter to them most. Users can create their online donation website in less than a minute and share it with friends & family using GoFundMe’s built-in connections to Facebook, Twitter, and email. The service charges an automatic 5% fee on all...

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