GoFundMe Is a Boon for Disaster Survivors. Especially the Wealthy Ones
Campaigns on the crowdfunding site raised more money for wildfire survivors with high incomes than for those who need help most, researchers found.
As climate-fueled disasters destroy more American homes, the crowdfunding platform GoFundMe has exploded in popularity. Its appeal is simple: People can provide cash directly to survivors, which is quicker than insurance and often more generous than government aid.
But new research suggests that cash sent through GoFundMe disproportionately benefits the wealthy rather than those who most need help.
Researchers examined donations to hundreds of people who lost their homes in the 2021 Marshall fire in Colorado, which destroyed more than 1,000 dwellings near Boulder. They found that those with household incomes above $150,000 received 28 percent more money, on average, than those with incomes below $75,000.
The authors concluded that the explanation largely revolves around social networks: Wealthier disaster survivors tend to be connected to more people, and those people often have more money to give.
“Crowdfunding gives higher-income survivors a bigger leg up,” said Emily Gallagher, an assistant professor of finance and real estate at the University of Colorado Boulder and one of the study’s authors. “We cannot count on this form of private charity to fill funding gaps.”
