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Crowdfunding platforms warned to be clear about the costs

December 6, 2024
Photo: Depositphotos.com

Seven crowdfunding and donation platforms in the Netherlands have pledged to be more transparent about the costs they charge, following intervention by the Dutch consumer authority ACM.

Platforms are supposed to state clearly how much of each donation they keep, including value-added tax, but many consumers are not aware of the payments, the ACM said.

Doneeractie, Doneerveilig, Geef.nl, Getfunded, GoFundMe, Steunactie and Whydonate have all agreed to give more details and this, the ACM said, will allow consumers to compare services and go for the best value for money.

“If you start fundraising, for example, to pay for treatment for a sick family member, you want to raise as much as you can,” said the ACM’s consumer affairs director Edwin van Houten. “If it turns out that the platform is keeping some of the money, without telling you in advance, you will be disappointed.”

Crowdfunding platforms are subject to the same rules as all providers of online services and must give clear information about the price before the campaign starts.

GoFundMe, for example, states it charges 2.9% of every donation plus 25 or 30 cents per transaction. Someone who raised €500 via five donors would receive €484 in their bank account. GetFunded says on its home page it charges 7% of each donation in fees plus €1.15 for iDeal payments.

The ACM said it would follow the platforms closely to make sure they were acting in line with the new agreement.

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