GoFundMe is refurbishing a little-known financial tool in a bid to supercharge everyday giving
Several friends wanted to help Cadogan reach his $28,000 goal as he crowdfunded for a Los Angeles area wilderness rescue team. But they tried to donate through a lesser-known wealth management tool called a donor-advised fund, or a DAF, a no-frills investing vehicle for money earmarked as eventual charitable gifts. After cutting checks and waiting three weeks, Cadogan said, the money finally arrived.
'It was just a bit of a thing,' he added. "If they were using a Giving Fund, it would take ten seconds.'
Giving Funds are GoFundMe's latest in a flurry of product rollouts with the purported goal of moving stagnant U.S. charitable contributions beyond the 2% GDP mark where totals have long hovered. But the for-profit company's DAF, announced Monday, enters a crowded market of more than a thousand providers — products often with older, wealthier clienteles that are often criticized for warehousing gifts.
To transform the way that everyday users plan their donations, Cadogan will have to widen the appeal of DAFs beyond the likes of the technology entrepreneur's circles. And he wants to change public perceptions of his company as just a crowdfunding site.
'We're also hopeful that more people will start using GoFundMe for a broader set of things in their lives: not just that one fundraiser they're supporting, not just that one nonprofit. But they're coming in and they're managing their giving portfolio with us and through us,' Cadogan said. 'That connects directly to our mission, which is we want to help people help each other.'
A DAF boom — but for whom?
Donor-advised funds grew popular over the last decade among ultra-high net worth individuals as a tax-efficient instrument for grantmaking without the hassle of a more sophisticated charitable foundation. Donors can immediately write the contribution off on their taxes but face no deadline for giving the money to a nonprofit.
The idea: account holders could invest money they wanted to ultimately donate, let the funds grow tax-free while they sit and give themselves time to identify the recipients best aligned with their giving goals.
There's since been a rush to court average givers. Legacy financial services firms such as Fidelity Charitable lowered the minimums to open accounts. Fintech startups such as Daffy contrast their flat fees with the hidden expenses they allege their competitors charge. All that traction brought IRS proposals last year to impose penalties on those who abuse DAFs and Congress has considered legislation that would require some deadlines for disbursements.
GoFundMe's Giving Funds will have no minimum balances, zero management fees and donations starting at $5. Users can load their DAF through their bank accounts or direct deposits for free. Credit card payments will be covered through the end of the year and then face the company's standard transaction fee of 2.2% plus 30 cents. Contributions can then be invested in a choice of exchange traded funds from managers including Vanguard, Blackrock and State Street Global Advisors.
Cadogan pitches Giving Funds as a way to be more intentional about giving — something he said user feedback suggests more people want. As he sees it, widespread adoption hasn't occurred because DAFs have been framed as 'wealth management products.'
'This is a giving product,' Cadogan said. 'It's something for everybody. And you don't need to know the words 'donor advised fund.' It doesn't show up.'
Moving the needle
DAFs remain scrutinized for allowing donors to reap tax benefits before they ever redistribute any money to charitable causes — even if the notion that the channel is being exploited is fiercely debated in the nonprofit sector. Opaque disclosure requirements make it difficult to put a number on the overall assets held within the funds. The National Philanthropic Trust placed the total at more than $250 billion in 2023.
Cadogan believes GoFundMe's culture is uniquely suited to nudge users with targeted spotlights of the 1.5 million charities already active on the platform. Giving Funds holders will be peppered with information about local nonprofits, crisis responders, their friends' charities of choice and potential beneficiaries that address their selected issue areas.
That 'dynamic, alive community' is very different from the 'fairly static, passive' financial vehicles in the current market, according to Cadogan.
'It's essentially inspiring the money to move,' he said.
Other features seek to encourage contributions by simplifying things. Users can set annual giving goals by a percentage of their income or a fixed number. Their gifts will tally up in real-time records to track their progress and ease year-end tax planning.
Streamlining the process was one area for improvement identified in the DAF Research Collaborative's recent survey of more than 2,100 donors. But Jeff Williams, one of the researchers, said DAFs are currently hitting the 'sweet spot of convenience and connection to nonprofits.'
The challenge for any new player, he said, is that it's a competitive environment with many different options. Plus, he added, many DAFs already are 'available-to-everyone vehicles" considering that half run balances under $50,000.
'Givers are voting with their feet that DAFs are increasing with popularity. More options are generally better,' Williams said. 'Anything that makes sure we maintain or enhance the ease of giving, it makes me happier.'
But Direct Relief CEO Amy Weaver, previously the CFO at Salesforce, described GoFundMe's entrance as 'a game changer' that could unlock additional funds. Direct Relief, a nonprofit that supplies free medical resources worldwide, reported receiving more than 18,000 DAF gifts totaling $116 million over the past five years.
Weaver acknowledged DAFs have been traditionally used by those with more substantial wealth. But she encouraged people to view them as a 'savings account" for "good works."
'And GoFundMe, with its name familiarity and the fact that it really attracts people making smaller gifts, I think could be incredibly powerful if they can bring DAFs to that group of people,' she said.
___
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Post
3 hours ago
- New York Post
Adam Schiff paying just 3% mortgage on homes at center of mortgage fraud probe
Sen. Adam Schiff (D-CA) is paying just 3% on both his Maryland and California homes since refinancing his mortgages in 2020, even lower than the 5.625% rate at the center of a federal mortgage-fraud investigation against him, newly released documents reveal. The Department of Justice is accusing the junior senator from California of claiming two homes as primary residences for more than a decade – to score lower mortgage rates and property taxes. A grand jury in Maryland is currently weighing a criminal indictment against the former 12-term congressman. 5 Schiff, a 12-term congressman, is in his first term as a Senator of the Golden State. AP Advertisement The newly released annual financial documents show that even after Schiff finally designated his Potomac, Maryland property as a second home in 2020 – after 16 years – he got the exact rock-bottom mortgage rate as his California residence when he refinanced both that year. The average 30-year mortgage interest rate in 2020 was 3.10% for primary residences in the US, with secondary residences usually subject to rates up to 0.5% higher. Those terms padded his wealth, since the California Democrat would have saved somewhere between $30,000 to $50,000 over 16 years, an analysis by The Post found. Advertisement That spacious 3,420-square-foot home, in one of DC's most affluent suburbs, where neighbors say Schiff actually spends most of his time, is now worth $1.4 million – almost double what he paid for it in 2003. Schiff also benefited from a homeowner's tax exemption by declaring his much smaller 650-square-foot one-bedroom, one-bathroom condo in Burbank, California a primary home, resulting in a $7,000 reduction in property taxes. 5 Schiff listed the Potomac, Maryland, home as a primary residence for 16 years. Google Maps The Senator's bank assets soared to between $1.18 million and $2.63 million in 2024, the records also show. Advertisement That's up from between $1.02 million and $2.37 million in 2023, and from $578,000 – $1.35 million in 2022, the year before he bought the Maryland home. 5 Schiff also owns a condo in this building in Burbank, California, near Los Angeles. Google Earth Schiff, 65, who led the first House impeachment inquiry into President Trump and has repeatedly said 'no one's above the law,' has also failed to disclose his mortgages on annual financial disclosures until 2011, a Post review found, even though he bought the Potomac property in 2003 and the California condo in 2009, an omission he has not explained. He's been called 'crooked' and 'low-life' by President Trump. Advertisement 'I have always suspected Shifty Adam Schiff was a scam artist,' Trump wrote in July on Truth Social. 5 President Trump has slammed Schiff as 'shifty' and 'crooked.' Getty Images Schiff is accused of wire fraud, mail fraud, bank fraud and making false statements to financial institutions, charges which carry prison terms of up to 30 years. He has denied wrongdoing and called the investigation a political witch hunt. 'Since I led his first impeachment, Trump has repeatedly called for me to be arrested for treason,' Schiff wrote on X when news of the investigation broke in July. 5 Schiff has slammed the federal investigation against him as politically motivated. REUTERS 'This is just Donald Trump's latest attempt at political retaliation against his perceived enemies.' Advertisement 'Adam Schiff's baseless smears of corruption against President Trump and Republicans have one simple explanation — he's projecting,' Republican National Committee Press Secretary Kiersten Pels told The Post. 'Schiff is a proven liar, a con man, and a fraud,' Pels added. Schiff did not return requests for comment.
Newsweek
6 hours ago
- Newsweek
Donald Trump's Approval Rating Suddenly Shifts With Gen Z
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. President Donald Trump's approval rating has rebounded with Gen Z voters, according to a new poll. Trump's approval rating among the youngest voters remains underwater, but the latest YouGov/Economist poll, conducted between August 9-11, shows Trump's net approval rating at -28 (33 percent approve, 61 percent disapprove), a 10-point jump from last month when it was -38 (18 percent approved and 66 percent disapproved). But his net approval rating remains far lower than it was in January, when it stood at +5 points. Why It Matters In the 2024 election, Trump made inroads with young voters, narrowing the Democrats' traditional lead among Gen Z—a group that has typically leaned left in recent cycles. According to AP VoteCast, voters ages 18 to 29 supported then Vice President Kamala Harris over Trump by just 51 percent to 47 percent. In 2020, Joe Biden carried the same age group by a much wider margin, winning 61 percent to Trump's 36 percent. President Donald Trump speaks at the Kennedy Center, Wednesday, Aug. 13, 2025, in Washington. President Donald Trump speaks at the Kennedy Center, Wednesday, Aug. 13, 2025, in Washington. Alex Brandon/AP What To Know Trump's standing with Gen Z voters has improved over the past month, with notable gains on the economy, immigration, and inflation, alongside modest increases in trust and confidence in his leadership, according to the polling. The August YouGov/Economist poll surveyed 1,635 adults and has a margin of error of plus or minus 3.5 percent. The July poll surveyed 1,680 adults and has a margin of error of plus or minus 3.4 percent. On the economy, approval rose from 30 percent in July to 36 percent in August, while disapproval fell from 64 percent to 54 percent. Meanwhile, approval of his handling of inflation jumped from 23 percent to 31 percent, with disapproval dropping from 72 percent to 60 percent. Inflation rose to 2.7 percent year-on-year in June, the highest reading since February, according to the U.S. Bureau of Labor Statistics (BLS). Gen Z's view of economic trends also improved. In July, 12 percent said the economy was getting better, 27 percent said it was the same, and 58 percent saw it getting worse. By August, "better" climbed to 18 percent, "same" dipped slightly to 25 percent, and "worse" fell to 51 percent. But Trump's approval rating on the economy is still substantially lower than it was in January, when his net approval among Gen Z stood at +18 points. Job growth slowed sharply in July, with just 73,000 new jobs added, far lower than expected. After last month's jobs report was published, Trump fired BLS Commissioner Erika McEntarfer. In a post, Trump accused McEntarfer—without offering evidence—of rigging the numbers to harm his administration. But that move by Trump was not popular among Gen Z voters, with only 13 percent saying the decision was justified—50 percent said they were not sure. Despite that, the latest poll shows small but measurable gains in perceptions of Trump's character and leadership. In August, 22 percent described him as honest, up from 20 percent in July, while the share saying he is not honest fell from 67 percent to 57 percent. But overall, Trump's honesty rating has fallen to its lowest point since he reentered the White House, with just 31 percent of Americans viewing Trump as trustworthy as he has recently faced mounting criticism for his handling of the Jeffrey Epstein investigation. Billionaire Elon Musk has urged Trump to "just release the files as promised," while author Michael Wolff has speculated that Trump may be seeking major distractions to shift attention away from the Epstein fallout. Victims and advocacy groups remain adamant that all records be made public, arguing that the current handling of the case "smacks of a cover-up." Public discontent is also reflected in the polls. On the Jeffrey Epstein case, only 13 percent of Gen Z voters approve of Trump's handling, while 69 percent disapprove. And 44 percent believe he knew "a lot" of Epstein's crimes before investigations began—and 32 percent think he knew "some." Trump has said that he had no knowledge of, or involvement, in Epstein's crimes. What Happens Next The Republican-led House Oversight Committee subpoenaed the DOJ for its files on Epstein, with a deadline of August 19 to hand them over, suggesting the issue isn't going away for the president anytime soon. And Trump's new nominee to run the BLS hinted at suspending the monthly release of jobs data. August's numbers are due to be published in the first week of September.
San Francisco Chronicle
18 hours ago
- San Francisco Chronicle
Gas valve failure during routine maintenance work may have led to fatal explosion, US Steel says
HARRISBURG, Pa. (AP) — Preparations for a routine maintenance task may have led to an explosion at a U.S. Steel coal-processing plant near Pittsburgh that left two dead and sent 10 to hospitals, the company said Friday. U.S. Steel said it developed the information, along with other investigators, from reviewing video footage and interviewing employees. That has suggested to them that the explosion happened when workers were flushing a gas valve in preparation for a routine planned maintenance task, the company said. The explosion, which heavily damaged part of the sprawling facility, started around a set of ovens where coal is baked to 1,200 degrees Fahrenheit (648.89 Celsius) into a more efficient carbon fuel called coke, a key component in steelmaking. A byproduct of processing the coal is a combustible gas called coke oven gas, made up of a lethal mix of methane, carbon dioxide and carbon monoxide. 'Pressure built inside the valve, leading to valve failure and coke oven gas filling the area and ultimately exploding when finding an ignition source,' U.S. Steel said. U.S. Steel didn't say why pressure built inside the valve or what was the ignition source. It said the investigation is in the early stages and that it will provide more information when it can. The United Steelworkers union, which represents workers killed and injured in the explosion, had no immediate comment. The massive plant along the Monongahela River in Clairton is considered the largest coking operation in North America and, along with a blast furnace and finishing mill up the river, is one of a handful of integrated steelmaking operations left in the U.S. The blast was so powerful that it sent a plume of black smoke into the sky, shook the ground and was heard by some people a mile or more away. It took hours to find two missing workers, one dead and one alive, beneath charred wreckage and rubble. The Clairton plant is nearly 110 years old. Japan-based Nippon Steel finalized its acquisition of U.S. Steel in June, winning President Donald Trump's approval after he reversed then-President Joe Biden's decision to block it. To change Trump's mind, Nippon Steel boosted its commitment to invest money into U.S. Steel's aging plants and gave the federal government a say over some matters involving domestic steel production.
