• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back

2

When SpaceX starts trading, some 'shareholders' will discover they own nothing at all

3

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

1

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back

2

When SpaceX starts trading, some 'shareholders' will discover they own nothing at all

3

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
FinanceCrowdfunding

How to Weed Out Scams From Legitimate Causes on Crowdfunding Sites

By
Reuters
Reuters
Down Arrow Button Icon
By
Reuters
Reuters
Down Arrow Button Icon
March 23, 2016, 4:57 PM ET
Shoppers Hunt for Post Holiday Bargains in Austin
Photograph by Joe Raedle—Getty Images

As crowdfunding sites like GoFundme.com and Indiegogo.com started to take off, New York City editor Brandon Wenerd was more than happy to donate to worthy causes, like the kid with stage-four kidney cancer who wanted to travel the world.

Soon Wenerd, 30, was swamped with more selfish requests: people raising money not for anything high-minded or charitable, but for spring break trips, honeymoons and credit-card debt.

“It has taken on this air of panhandling to me,” said Wenerd.

For anyone with a Facebook (FB) or email account, it is likely a familiar story. More and more family members, or friends, or friends of friends, or even strangers, are asking for help with the rent, or to fund a trip.

The crowdfunding field has ballooned to over $34 billion in just a few years, according to the consulting firm Massolution, up from $880 million in 2010, so it is perhaps inevitable to see some backlash.

“You know what people did before GoFundMe? They worked,” said Damen Bell-Holter, a professional basketball player from Alaska who now plays overseas in Finland. He is among those who finds himself awash in crowdfunding requests, and is sick of them.

“Help me with my rent, help me with my school bills. I understand tragedy occurs, and some people legitimately need help—but others are just lazy,” he said.

The floodgates to silliness opened when people figured out that the online interface allows them to reach out and ask for things they might not have the temerity to ask for in person, said Amir Pasic, dean of Indiana University’s Lilly Family School of Philanthropy.

Even Kickstarter, which has successfully funded over 102,000 projects toward the goal of bringing “creative projects to life,” helped one man raise over $55,000 so he could make potato salad.

GoFundMe has raised $2 billion in the last year, with some users currently seeking money to buy bottles of Hennessy cognac, Yeezy sneakers, and breast implants.

Indiegogo has raised over $800 million for projects since its inception—including ventures like a bug-killing salt rifle, 13 dates for a British bachelor named Tom, caffeinated toothpaste and an attempt to bail out Greece.

These sites can also be fertile ground for potential scams. Washington State Attorney General Bob Ferguson calls the phenomenon “crowdfunding theft,” and last year ordered restitution to donors who had paid up for one project of horror-themed playing cards and got zilch in return.

Vigilante sites have also cropped up, like Kickscammed and GoFraudMe, to police crowdfunding projects which do not follow through on what they promise.

The main source of conflict: Once the funds are dispersed, there is not a lot of transparency. When famed girl group TLC raised more than $430,000 from fans last year to put out new music, the musicians faced backlash when no album emerged.

Give Smarter

To effectively sort through donation requests, potential donors need to avoid information overload, which can make it hard to discern between the truly needy and the personal larks. Research shows when donors get bombarded with direct-mail requests for money, Indiana University’s Pasic said, they do not get more generous—they just get really irritated.

Some stop giving altogether. If you get a crowdfunding request and do not know the person that well, “just ignore it,” advised financial planner George Gagliardi of Lexington, Mass.

If the situation is more delicate—such as a close friend or family member—Gagliardi suggested dividing the requests into varying levels of urgency, from “dire, life-threatening situations” all the way to “luxuries.” Then you can make the call depending on the particular case, and your own financial ability to contribute.

The final step is to take the request out of the digital world. Ask yourself: Would this person actually ask for money to your face?

“People are using the cover of technological distance, and just hoping people will make quick donations on the fly,” said Pasic. “If there is a genuine need, and a real case to be made, then try picking up the phone and talking with them about it.”

About the Author
By Reuters
See full bioRight Arrow Button Icon

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

Elon Musk stands behind the Nasdaq opening bell and in front of a "SpaceX" background.
Startups & VentureSpaceX
Founders Fund, Andreessen Horowitz, Valor, and the biggest VC winners from SpaceX’s IPO
By Allie GarfinkleJune 12, 2026
2 hours ago
Liability Car Insurance Explained: What It Covers and How Much You Need
Personal FinanceInsurance
Liability Car Insurance Explained: What It Covers and How Much You Need
By Joseph HostetlerJune 12, 2026
3 hours ago
Secured debt vs. unsecured debt: What’s the difference?
Personal Financedebt relief
Secured debt vs. unsecured debt: What’s the difference?
By Joseph HostetlerJune 12, 2026
3 hours ago
U.S. energy secretary says 7 million barrels of oil exiting Persian Gulf daily, but Chevron CEO rebuts the claim
Energycrude oil
U.S. energy secretary says 7 million barrels of oil exiting Persian Gulf daily, but Chevron CEO rebuts the claim
By Jordan BlumJune 12, 2026
3 hours ago
gavin
North AmericaCalifornia
Newsom called homelessness California’s calling in 2020. His budget still spends less than 0.5% on it
By Benjamin F. Henwood and The ConversationJune 12, 2026
4 hours ago
ss
CommentaryWorld Cup
‘Soccernomics’ co-author: FIFA’s ticket strategy isn’t price discovery, it’s a wealth filter
By Stefan Szymanski and The ConversationJune 12, 2026
4 hours ago

Most Popular

Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
Environment
Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
By Catherina GioinoJune 9, 2026
3 days ago
When SpaceX starts trading, some 'shareholders' will discover they own nothing at all
Investing
When SpaceX starts trading, some 'shareholders' will discover they own nothing at all
By Jim EdwardsJune 12, 2026
13 hours ago
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
Energy
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
By Sasha RogelbergJune 10, 2026
2 days ago
Current price of oil as of June 11, 2026
Personal Finance
Current price of oil as of June 11, 2026
By Joseph HostetlerJune 11, 2026
1 day ago
American taxpayers have spent $33 billion on sports stadiums. They got fewer seats—and higher prices
Success
American taxpayers have spent $33 billion on sports stadiums. They got fewer seats—and higher prices
By Catherina GioinoJune 11, 2026
1 day ago
Current price of oil as of June 12, 2026
Personal Finance
Current price of oil as of June 12, 2026
By Joseph HostetlerJune 12, 2026
10 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.