A lawsuit filed in federal court in Illinois last month alleges that GoFundMe deceptively adds “tips” to donations that are collected by the company instead of going to the intended recipients. The complaint, brought by Sandra Donovan of Illinois and Ebony Baker of Georgia, claims that donors are automatically presented with an optional tip that is difficult to remove, forcing them to spend more than they intended.
GoFundMe launched in 2010 and has grown into a popular platform that connects strangers with families in need of funeral or medical expenses. Donors can send money with a single click, and the site advertises a 0 % platform fee for organizers, suggesting that all funds go directly to the fundraiser.
The lawsuit contends that this description is false, arguing that GoFundMe actually generates revenue by charging charitable organizations hefty transaction fees—2.9 % plus $0.30 for individuals and businesses, and 2.2 % plus $0.30 for certified nonprofits. It also claims that the automatic tip feature is a hidden fee that donors are unaware of, and that the company’s wording misleads donors into believing their money will go entirely to the cause.
In response, a GoFundMe spokesperson said the company’s business model is designed to maximize support for beneficiaries. The spokesperson explained that tips are optional, can be set to zero, and are shown in a clear breakdown before donation completion. The company maintains that tips do not affect the amount received by the fundraiser.
The plaintiffs’ lawyers are seeking class‑action certification and a jury trial to halt what they call GoFundMe’s deceptive conduct and recover ill‑gotten gains. GoFundMe has denied the allegations, stating they have no merit. The article was updated on September 11, 2026 to include the company’s statement.
