Going behind exploding trend of Go Fund Me campaigns

It’s the brainchild of a couple of young entrepreneurs. Their dream was to create a platform for regular people to raise money for causes important to them. In the six short years since the launch of Go Fund Me, they’ve exceeded all expectations, raising more than $305 billion.

Go Fund Me Media Director Kelsea Little met with CBS Local 2’s Jenifer Daniels to provide an inside look of the company. Little said this is the first time Go Fund Me has allowed the media into its facility.

An increasing number of people in need of money are turning to the site to fund their projects and cover their expenses. Go Fund Me touts itself as “changing the way people give”, but it may be making changes in more areas than just giving.

Adam, a traveling musician with the San Francisco band “Cut Up”, understands it’s a great way to raise money when you have no money. He says he and his band mates have considered using the fundraising site but haven’t done so yet.

“If I really need to, I might use it,” Adam said, gesturing to the band van. “If this thing breaks down like a week from now and we are out in the middle of nowhere and have no money at all, we might set something up and see if anyone would throw some money at us.”

A growing number of people are turning to the platform, counting on the charity of others, especially during times of crisis. In many cases they’re relying on crowdfunding to supplement insurance, sometimes replacing it altogether.

Kelsea Little, Go Fund Me Media Director, explains how the medium allows others to feel more involved with helping those they care about.

“Go Fund Me is definitely different than life insurance or medical insurance,” said Little. “I’d say it’s supplementary and it’s very different because it’s a platform that allows friends and family to come together and join in this social conversation around this cause that is going on, and that’s a need that can never be filled by an insurance company.”

Wayne and Fran Brown of Indio were making plans for their retirement when they received the devastating news that Wayne had a brain tumor. At the time, the Brown’s health insurance through Fran’s employer had lapsed due to company changes.

The Brown’s went for a second opinion and learned the tumor had tripled in size in just three weeks. Doctors told them Wayne needed surgery right away. Knowing their insurance would be effective in a month, Fran asked if they could wait.

“I’ll never forget, the surgeon looked at me and said, ‘I wouldn’t wait'”, Fran Brown said.

The only way Wayne could receive treatment was if the couple prepaid for the surgery. Terrified, Fran was willing to do anything to give her husband a fighting opportunity. She thought of selling their home but knew the money would not clear in time.

Without insurance, and without enough money, the couple was forced to take out loans and *borrow* funds totaling more than $100,000 to pay for Wayne’s treatment.

The Brown’s are now covered under a new insurance plan, which went into effect after Wayne’s surgery. The policy is covering the cost of Wayne’s ongoing chemotherapy and radiation treatments. The policy will not cover the cost of Wayne’s original surgery.

Now needing to payback what they’ve borrowed.. Fran has set up a Go Fund Me campaign. Wayne says he was against asking others for help.

Wayne, a former surf shop owner, prided himself on his self-sufficiency.

“Its really hard for a guy to put his feelings aside,” said Wayne. “His manlihood, I had to take care of her as much as myself. So she put it up and the response we got was amazing.”

People the Browns have not seen in forty years have reached out through Go Fund Me, including people who were once customers at Wayne’s shop in Huntington Beach.

His sentiments capture the emotion.

“All of a sudden I had these little kids who are now adults donating and making comments, it was cathartic and healing right then. I was really glad she made me do it,” Wayne said.

The Browns and others say they find Go Fund Me appealing and user-friendly. Campaign organizers can increase the amount they want to raise.. and they have immediate access to the funds. Also there are no campaign deadlines like with other crowdfunding sites.

The Go Fund Me website offers tips on how to run a successful campaign.

Kelsie Little offered a friendly note for future users:

“The important thing to understand about Go Fund Me is it’s a common misconception that strangers will just look around the site for campaigns to donate to. And that really doesn’t happen. It’s overwhelmingly friends and family donating to campaigns. The rare exceptions to that are when campaigns receive media attention.”

Fran agrees and explained how heartwarming the Go Fund Me experience has been.

“Not only financially but the emotional support we got. It goes out on the social media. It’s not just who you know but it’s your friends and also who they know and who those people know, and so we were overwhelmed by people who didn’t even know us, but because they knew our friends they contributed,” said Fran.

Fundraising has been a mainstay of our society for years. The crowdfunding platform just makes it easier. Little said crowdfunding events have previously taken place at car washes, bake sales and spaghetti dinners, but now people from all over the world in your network can get involved with your story.

Joshua Lewellen, 27, had survived cancer and a stroke. He was defying the odds with a passion for life when his mother Suzanne Leib received a call that he had died.

“When they told me had passed away at the hospital — immediately with the questions — Do you have life insurance? Do you have arrangements? No… I’m not ready for this,” said Leib.

Suzanne, like most parents, didn’t expect her child to die before her. She has life insurance for herself but not for her son. She turned to Go Fund Me and in two days reached her goal. “If it wasn’t for Go Fund Me, I don’t know what we would have done, we were able to take care of his arrangements and do a memorial service,” she added.

Go Fund Me charges five percent for each donation that comes in. Another three percent goes to a payment processor. The Browns and Suzanne agree pre-planning and insurance are preferred options, but in times of crisis, options aren’t always available.