What Happens to Excess GoFundMe Money and How to Manage it Properly

When a GoFundMe campaign exceeds its fundraising goal, the question arises: what happens to the excess funds? It's important for campaign organizers to understand the various options available to them and to manage these funds transparently to maintain trust with their donors.

Common Scenarios for Excess Funds

There are several common ways in which excess GoFundMe funds can be used:

1. Continued Use for Related Expenses

If the original purpose of the campaign includes ongoing costs such as medical bills or recovery expenses, the excess funds can be allocated to cover these additional expenses. This allows the campaign to benefit the intended beneficiaries fully.

2. Withdrawal by the Organizer

The campaign organizer has the right to withdraw the excess funds. However, this option should be used judiciously, and the organizer should communicate with donors if the funds will be used for a different purpose or if the original goal is no longer relevant.

3. Donor Refunds

In some cases, organizers may choose to offer refunds to donors if they feel the excess funds are not warranted or if the goal has been significantly surpassed. However, it's important to note that GoFundMe does not automatically issue refunds for excess funds. The decision to return funds to donors is entirely up to the organizer.

4. Support for Related Causes

Sometimes, organizers may opt to donate the excess funds to related charities or causes that align with the original purpose of the campaign. This approach not only manages the excess funds but also extends the campaign's positive impact to similar beneficiaries.

5. Campaign Closure

Once the fundraiser is complete, the campaign can be closed, and any remaining excess funds can be managed according to the organizer's decisions. This includes returning the funds to donors, distributing the funds to related causes, or using the funds for the intended purpose.

Best Practices for Managing Excess Funds

To maintain trust and ensure the successful completion of the campaign, it's crucial for organizers to be transparent about how excess funds will be used. Here are some best practices:

6. Communication with Donors

Organizers should communicate clearly with their donors about the campaign's success and how any excess funds will be used. This includes keeping donors informed about any changes in the plan and obtaining their consent if necessary.

7. Maintaining Documentation

Keep detailed records of all transactions and communications related to the campaign. This documentation can be crucial in case any questions arise or in future reference.

8. Ensuring Compliance

Make sure to comply with GoFundMe's policies and any relevant legal requirements when managing excess funds. Transparency and compliance should be the guiding principles.

In conclusion, the management of excess GoFundMe money is best handled with transparency, communication, and careful planning. By understanding the various options and choosing the right approach, campaign organizers can ensure that they manage excess funds ethically and effectively, maintaining the trust of their donors and the success of their fundraising efforts.

Key Takeaways

Excess GoFundMe money can be used for related expenses, withdrawn by the organizer, offered as refunds, donated to related causes, or managed as per the organizer's decisions. Transparency and communication are crucial to maintaining trust with donors. Organizers should follow GoFundMe's policies and comply with relevant legal requirements.

Contact Information

For any inquiries or additional assistance related to managing excess funds on GoFundMe, you can contact GoFundMe's customer support team:

Email: support@ Phone: 1-866-744-3784