Crowdfunding giant GoFundMe now sells gift cards 

GoFundMe has launched a new offering that allows you to purchase digital gift cards for your loved ones, enabling them to donate to their favorite nonprofits during the holidays.

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 conservationists.

These cards work differently than traditional gift cards, though. They work through FundingGoFundMe’s fee-free donor-advised fund (DAF). Launched in June, it marks the platform’s first foray into DAF, which aims to make them accessible to everyday donors. Historically, donor-advised funds have been out of reach for most people because of high minimum contributions and fees.

When the recipient claims the gift card, the amount is credited to their personal giving fund. They then have the option to donate immediately or allow the funds in their account to grow tax-free, giving them the opportunity to contribute more later. The person who buys the gift card will get 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 gifting strategy may appeal to users for a number of reasons. For example, instead of giving a simple gift, people can help their loved ones support causes that really matter to them, such as a local soup kitchen that helps feed families during Thanksgiving, a time when many people struggle to put food on the table.

Also, a nonprofit gift card can be a great way for older generations to teach younger family members about the importance of giving back. It opens up conversations about the various factors and their true impact.

In May, GoFundMe celebrated its 15th anniversary and announced that it had surpassed $40 billion worldwide. The company also launched GoFundMe Pro, a platform aimed at helping nonprofits with fundraising. The new platform introduced AI tools designed to make it easier for nonprofits to request grants.