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More Americans Turn to GoFundMe for Basic Needs Amid Rising Costs
A growing number of Americans are resorting to crowdfunding platforms to cover essential living expenses, according to GoFundMe’s annual report released Tuesday. The platform has witnessed a 20% increase in fundraisers for basic necessities such as rent, utilities, and groceries in 2023, building on a four-fold increase from the previous year.
“Monthly bills” now rank as the second fastest-growing category on the platform, trailing only behind nonprofit support campaigns. This trend isn’t isolated to the United States; similar patterns have emerged across all major English-speaking markets where GoFundMe operates, including Canada, the United Kingdom, and Australia.
“Someone may be behind on rent or needs a little bit of extra help to get through the next month,” explained GoFundMe CEO Tim Cadogan. “That’s a function of what’s going on in these economies. And what is interesting is that people do step up and support folks in those situations.”
The surge in basic needs fundraisers coincides with broader economic challenges in the United States, including weakened wage growth for lower-income workers, sluggish hiring, rising unemployment rates, and low consumer confidence. These factors have combined to create significant financial pressure on vulnerable households.
Food assistance has emerged as a particular area of need. Food banks were the most common recipients of community-focused campaigns this year. The platform experienced a nearly six-fold spike in food-related fundraisers between late October and early November, coinciding with the temporary suspension of SNAP benefits during the government shutdown.
Martin Lukk, a postdoctoral researcher at the University of Toronto who studies economic inequality, sees these trends as a significant evolution in crowdfunding’s purpose. “When there’s no other net to catch people, I think GoFundMe is where they often end up,” said Lukk, who co-authored a book on digital crowdfunding.
He cautions that GoFundMe data only captures a portion of the economic hardship many Americans face. The platform requires internet access, technical ability, and often effective storytelling skills to run successful campaigns. Many users never reach their funding goals, and countless others in need never attempt to use the platform.
For New Orleans resident Iesha Shepard, turning to GoFundMe was a last resort. The 34-year-old single mother of two has suffered from chronic heart failure since being shot multiple times four years ago. When illness prevented her from working her part-time hotel job for three weeks, she received an eviction notice.
“I don’t want to be homeless with my children around the holiday time,” Shepard explained. “That was my last option. I prayed and I did a GoFundMe.”
Her campaign has collected over $1,000 toward her $1,800 goal, with donations accelerating after she shared videos about her situation on TikTok. One post has garnered more than 10,000 views.
Cadogan acknowledges that his company’s services shouldn’t replace robust government support systems. “We always hope that countries have strong government programs around health, housing or seniors’ well-being,” he said. However, he recognizes that gaps exist in every country’s social safety nets.
The increasing reliance on crowdfunding for basic necessities raises questions about the adequacy of existing social support systems in the United States. As more Americans struggle to keep pace with the rising cost of living, platforms like GoFundMe have transformed from primarily supporting entrepreneurial ventures to becoming makeshift safety nets for those facing financial crises.
Despite the sobering implications, Cadogan finds inspiration in the community response to these campaigns. “Taking that action opens the door to what can be incredible goodness,” he said, describing asking for help as a “courageous act” worth taking.
As 2023 draws to a close, the data from GoFundMe serves as both a testament to community generosity and a stark indicator of persistent economic vulnerability for many Americans.
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10 Comments
It’s heartening to see people coming together to support each other, but relying on crowdfunding for basics like food and housing is concerning. Policymakers need to take a closer look at this issue.
Crowdfunding can be a helpful stop-gap, but it shouldn’t be the primary way people access food, housing, and other necessities. We need to find ways to strengthen the social safety net.
The rise in crowdfunding for essentials is a troubling sign of the times. I hope this prompts deeper conversations about how to build a more equitable and resilient economy.
The growth in crowdfunding for essentials is a worrying sign of the challenges many Americans face. I hope this data spurs more discussion about long-term solutions to address rising costs and stagnant wages.
I’m curious to see how crowdfunding platforms like GoFundMe continue to evolve to meet these growing needs. Perhaps they could partner with nonprofits and government programs to provide more comprehensive support.
This is a sobering statistic that reflects the harsh realities many Americans face. I hope it leads to meaningful action to address the root causes of economic insecurity.
This is a concerning trend that reflects the struggles many Americans face with rising costs of living. I hope the government can take steps to address the underlying issues.
While crowdfunding can provide temporary relief, it’s ultimately not a sustainable solution for meeting essential needs on a larger scale. Broader economic and policy reforms seem necessary.
While I’m glad to see people supporting each other through crowdfunding, it’s concerning that so many are struggling to afford essentials. Policymakers should take this as a wake-up call.
Interesting to see how the pandemic and economic pressures have driven more people to crowdfunding for essentials. I wonder if this will lead to policy changes to better support basic needs.