Funeral Costs Dominate Crowdfunding CampaignsAs the cost of living climbs, more families turn to crowdfunding to raise money for funerals when saying goodbye becomes unaffordable
In the past, funerals were typically paid for through savings, life insurance policies or family aid. Lately, however, it has become increasingly common for people to turn to strangers for assistance with funeral expenses. Funerals have become one of the fastest-growing categories on crowdfunding websites like GoFundMe, where online users can donate to any cause…
In the past, funerals were typically paid for through savings, life insurance policies or family aid. Lately, however, it has become increasingly common for people to turn to strangers for assistance with funeral expenses.
Funerals have become one of the fastest-growing categories on crowdfunding websites like GoFundMe, where online users can donate to any cause they choose. Industry watchers who have crunched GoFundMe’s reported figures even estimate that roughly 4.1% of U.S. funerals involve crowdfunding support — that’s 1 in 25 families.
Once considered a last resort for paying these expenses, crowdfunding has quietly and quickly become a normal funding source for arranging a funeral or memorial service. This growing trend says a lot about the cost of these services, the state of American finances, and a broader change in how community support (or online support) can show up for grieving families.
The Cost of Funerals
The National Funeral Directors Association estimated in 2023 that the average cost of a funeral, including viewing and burial, is roughly $8,300. Cremation costs slightly less, at an estimated $6,280, but this amount is still thousands of dollars more than most families have in their bank accounts. Even further, these figures don’t typically include cemetery plots, headstones, travel expenses and other “external” types of costs associated with memorial services.
A large share of Americans don’t have the savings set aside to cover expenses of that size, especially if the death was sudden and unexpected. Recent Bankrate survey data revealed that 53% of Americans couldn’t even cover a $1,000 emergency expense using their savings. Around a quarter of Americans reported that they had no emergency savings at all.
For these families, funeral bills cost eight times more than the average household can produce on short notice. Crowdfunding serves to ease that burden and fill the gap that any insurance, pre-planning and savings do not cover.
When Do Families Turn to Crowdfunding?
Relying on crowdfunding assistance for funeral expenses tends to happen when deaths arrive without warning — and this may happen more often than one may realize. Sudden cardiac events alone are responsible for an estimated 10% to 15% of all deaths, especially for men and people over 55 without any prior diagnoses. Accidental deaths, stemming from incidents like overdoses or car accidents, are ranked by the CDC as the third-leading cause of death in America, and the leading cause of death for those between the ages of one and 44.
While families who lose a loved one after a long illness have more advance notice and time to plan, those who are confronted with a heart attack, car accident or work injury rarely do. These demographics are the most likely to turn to GoFundMe and start a fundraiser covering the related costs.
Longer Lives, But Fewer Savings
Americans are living longer than ever — in 2024, the CDC reported a life expectancy of 79 years. With longer lives, finances (especially during retirement) are stretched thinner, especially with significant rises in inflation and the cost of living. End-of-life financial preparedness is sacrificed in order to compensate for these factors.
If these financial stresses and cost increases rise further, we may see funeral expenses grow even more as a category on crowdfunding websites. Relying on online community support is an understandable response to a world where the cost of dying has outpaced a family’s ability to pay for it. Crowdfunding has even become an informal safety net during emergencies like these.
Success on crowdfunding websites, unfortunately, depends on a particular family’s social network, their ability to use and access these websites and the generosity of strangers. Nothing is guaranteed with crowdfunding, so it should not be the solution to the rise in costs and financial insecurity for American families. For some, however, it has become a lifeline.
May We Suggest:
How Can Families Save Money By Having A Home Funeral? (Interview)
Are Funeral Homes a Dying Breed?
Our Monthly Tip: Use Crowdfunding to Help with Funeral Expenses-
This is a sobering reminder that grief can come with an overwhelming financial burden. No family should have to worry about affording a meaningful goodbye while already facing the pain of losing someone they love.
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I agree. Grieving families already have so much to carry. Being able to honor a loved one with dignity should never depend on how much money they have.
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