Should I Use a Crowdfunding Platform to Help Cover Funeral Expenses?

Using a crowdfunding platform to help cover funeral expenses can be an effective option for addressing financial challenges associated with final arrangements. Crowdfunding platforms allow individuals to raise funds through online donors who pledge to contribute money to support a cause. Since funerals can cost thousands of dollars, crowdfunding can provide a quick way to acquire some or all of the funds necessary for services in the event of an unexpected death.  

The process associated with effective crowdfunding is fairly simple. Individuals can set up an account on a popular platform and start a campaign to communicate the need for financial support. They then share the campaign through social media, email, or text messages. The campaign should clearly communicate the reason for the request and outline the anticipated costs for the funeral. Many people find it helpful to share additional information about the cause of death and why they are unable to cover the costs for arrangements independently. Including pictures and allowing others to share their memories of the person who died can further personalize the campaign and make it more relatable. 

It is important to be realistic about the amount of funding that the family can raise with a campaign, as well as how taxes or fees can change the total amount of funds received when the campaign has concluded. Although crowdfunding can help raise some of the necessary funds for the funeral, it can be challenging to raise enough money if the campaign isn’t shared with an extensive social network or spread consistently throughout the community. Similarly, every crowdfunding platform has its own policies regarding the amount of fees and taxes it deducts from the final amount raised, so it’s important to be aware of how these limitations can impact funds. Providing details about the funeral home or crematory that will be responsible for the services and being fully transparent about how the funds will only be used can help reduce reluctance among potential donors.

The decision to use a crowdfunding platform to cover funeral expenses is often a matter of personal preference, but it is becoming increasingly prevalent. According to Midland National, around 20% of adults aged 20 to 39 have used crowdfunding to raise funding for funeral arrangements, and over 125,000 memorial fundraisers have been started solely on GoFundMe. Ultimately, individuals interested in pursuing crowdfunding are encouraged to consider both the benefits and drawbacks of this method, as well as potential alternatives to covering expected costs. 

Sources

“Crowdfunding for Funerals and Memorials”. FuneralWise. https://www.funeralwise.com/funeral-cost/crowdfunding/ 

“Get Help With Burial Expenses Using These Resources”. GoFundMe. https://www.gofundme.com/c/blog/burial-expenses 

“Don’t Make These Four Crowdfunded Funeral Mistakes”. Keefe Funeral Home. https://www.keefefuneralhome.com/dont-make-these-four-crowdfunded-funeral-mistakes 

“A growing number of millennials seek crowdfunding for final expenses”. Midland National. https://www.midlandnational.com/learn-and-plan/millennial-crowdsourcing-funerals