The Rise of GoFundMe: A Reflection of Economic Struggles

The annual “Year in Help” report from GoFundMe highlights a significant trend: an increasing number of individuals are turning to the crowdfunding platform to cover essential living expenses such as housing, food, and utilities. According to the report, the number of fundraisers aimed at addressing these basic needs surged by 20% in 2025, following a quadrupling of such campaigns the previous year. GoFundMe CEO Tim Cadogan noted that this rise is indicative of broader economic challenges, including weakened wage growth, sluggish hiring, and low consumer confidence, particularly affecting lower-income workers in the United States, Canada, the United Kingdom, and Australia.

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The report underscores the struggles many face in the current economic climate. Cadogan stated, “Someone may be behind on rent or needs a little bit of extra help to get through the next month,” emphasizing the direct correlation between economic hardship and the reliance on crowdfunding. The platform has also seen a notable increase in food-related fundraisers, particularly during the recent government shutdown, which led to cuts in monthly Supplemental Nutrition Assistance Program (SNAP) benefits. This situation reflects a shift in the use of GoFundMe from its original purpose of supporting entrepreneurial ventures to serving as a critical lifeline for individuals facing financial distress.

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Iesha Shepard, a single mother from New Orleans, exemplifies the challenges many are facing. After suffering from chronic heart failure and losing her part-time job, she received an eviction notice, prompting her to create a GoFundMe campaign. Shepard described her experience, stating, “I don’t want to be homeless with my children around the holiday time. That was my last option.” Her campaign has garnered over $1,000 towards her $1,800 goal, demonstrating the potential for community support through crowdfunding.

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While GoFundMe provides a platform for individuals in need, experts caution that it is not a comprehensive solution to economic inequality. Martin Lukk, a postdoctoral researcher at the University of Toronto, remarked that the platform serves as a “barometer of where things are at in terms of desperation.” He noted that GoFundMe data may not fully capture the extent of need, as not everyone in distress participates, and many campaigns do not reach their funding goals. This raises concerns about the adequacy of crowdfunding as a substitute for robust government support systems.

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Cadogan expressed hope that countries would strengthen their social safety nets, acknowledging that GoFundMe cannot fill all gaps in health, housing, or senior well-being programs. He emphasized the courage it takes for individuals to ask for help, stating, “Taking that action opens the door to what can be incredible goodness.”

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• “When there’s no other net to catch people, I think GoFundMe is where they often end up,” — Martin Lukk, Postdoctoral Researcher

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• “I don’t want to be homeless with my children around the holiday time.” — Iesha Shepard, GoFundMe Organizer

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• “Taking that action opens the door to what can be incredible goodness,” — Tim Cadogan, CEO of GoFundMe

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The increasing reliance on GoFundMe for basic needs highlights the ongoing economic struggles faced by many individuals, raising questions about the adequacy of existing social support systems.

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