Crowdfunding giant GoFundMe plans to sell gift cards

GoFundMe has introduced a new offering that lets you purchase digital gift cards for your loved ones, enabling them to donate to their favorite nonprofits during the holidays. (Note that the product has not been launched yet.)

Gift cards start at $5 and come in a variety of themes and causes, including birthdays, Christmas, Hanukkah and Ramadan, as well as cards for animal lovers, cancer fighters and nature conservationists.

These cards work differently than traditional gift cards. They work through Giving moneyGoFundMe, a donor-advised, no-fee (DAF) fund. Launched in June, this marked the platform’s first foray into DAFs, with the aim of making it more accessible to everyday donors. Historically, donor-advised funds have been out of reach for most people due to high minimum contributions and fees.

When recipients claim the gift card, the amount is deposited into their personal giving fund. They then have the option to donate right away or let the money grow tax-free in their accounts, giving them the opportunity to contribute more later. The person who purchased the gift card gets a tax deduction.

Recipients can choose from 1.4 million nonprofits on the platform, from local food banks to global organizations that provide disaster relief, support youth programs, and promote animal welfare.

GoFundMe’s new gift strategy could appeal to users for several reasons. For example, instead of making a generic gift, people can help their loved ones support causes that really matter to them, like a local soup kitchen that helps feed families during Thanksgiving, a time when many people struggle to put a meal on the table.

Additionally, a nonprofit gift card can also be a great way for older generations to teach younger family members the importance of giving. It opens up conversations about the different causes and real impact.

In May, GoFundMe celebrated its 15th anniversary and announced that it had surpassed $40 billion raised globally. The company also launched GoFundMe Pro, a platform aimed at helping nonprofits raise donations. The new platform introduced artificial intelligence tools designed to make it easier for nonprofits to request donations.

This story was updated after publication.