GoFundMe has announced that it will now allow Mexican fundraisers to solicit donations on its platform, making Mexico the 20th country serviced by the crowdfunding giant. CEO Tim Cadogan mentioned that with the easing of the unprecedented strain of crowdfunding campaigns caused by COVID-19, the company is looking to expand into more untapped Latin American markets. Mexico, as one of the world’s largest economies and a close partner of the U.S., was seen as a logical fit for GoFundMe, especially due to the high search volume for the platform in the country and the interest from users to establish campaigns.
The company has found that appeals for help with medical expenses and emergency aid, which are common on GoFundMe, are also prevalent in Mexico. With a relatively high out-of-pocket healthcare expenditure and a history of severe natural disasters, many individuals in Mexico may benefit from crowdfunding campaigns. Cadogan highlighted the example of Hurricane Otis and how the GoFundMe community raised $1.5 million to aid recovery efforts, but noted that more Mexicans could have benefited if campaigns were available to them at the time.
Mexico has a significant population living in poverty, where any unexpected expense, particularly medical ones or events like kidnapping or extortion, can lead to appeals for funds. Previously, U.S. users had opened campaigns on behalf of relatives in Mexico, but now with the expansion of GoFundMe to Mexico, the flow of money between users from both countries is expected to be easier. This move is seen as evidence of the normalization of crowdfunding, according to bioethicist Jeremy Snyder, who researches medical crowdfunding.
While there are already crowdfunding networks in Mexico, such as Donadora which supports creative industries and personal causes, none have the reach and reputation of GoFundMe. The platform is well-positioned in Mexico due to its brand awareness, pricing structure, and security features. GoFundMe takes a percentage of each transaction, along with a small fee, but also guarantees full refunds for users who file claims within a year of making a donation. The expansion of GoFundMe into Mexico has been welcomed by Junueth Mejia Martell of Hispanics in Philanthropy, who sees it as strengthening the culture of generosity and philanthropy in Mexico.
The online payment provider for GoFundMe in Mexico will be financial technology startup Stripe. Fundraisers must meet certain criteria, including being at least 18 years old, having a Mexican postal address, a Mexican bank account, and a federal taxpayer registry number. The company is also considering expanding into other Latin American countries in the future, based on the success of its launch in Mexico. The move to serve more markets in Latin America is part of GoFundMe’s broader strategy to make its platform accessible to individuals in need of financial assistance across the globe.
The expansion of GoFundMe into Mexico is seen as a positive step in bridging gaps in philanthropic funding for Latino causes. Platforms like GoFundMe provide another avenue for individuals to seek financial support for various needs, further promoting a culture of giving and solidarity. The company’s careful consideration of new markets in Latin America, along with its focus on security and ease of use for fundraisers and donors, demonstrates its commitment to helping individuals in need access the support they require through crowdfunding.
