Asking
Only logged in members can reply and interact with the post.
Join SimilarWorlds for FREE »

GoFundMe groceries? Is America entering “peak scam” . . . ?



Photo above - Have you ever had a dream that you were so sure was real? What if you were unable to wake from that dream? How would you know the difference between a real needy person and a scammer on GoFundMe?

Sorry, I am so NOT going to make a donation to buy groceries for someone online who I’ve never met. I occasionally buy stuff at the Piggly Wiggly down the block for people who are between jobs, had a partner leave them, or are currently sleeping on someone’s couch. I refuse to feel guilty for not supporting strangers online.

I didn’t even realize this crowdfunded grocery scam was a thing, until GoFundMe CEO Tim Cadogan began to brag about on some podcast (see link at bottom). Yeah, I’d never heard the name Tim Cadogan either, so I googled him. He’s a millionaire, lives in Altadena California (adjacent to Pasadena), has an MBA from Stamford, and worked for McKinsey as a consultant. Then, one day, he hit on the idea of concocting GoFundMe. This DOES sound like a person in California would come up with at a wine spritzer/barbecue, no?

GoFundMe is NOT a publicly traded stock. Why would it be? That would mean financial transparency, quarterly reports, shareholder meetings, and a board of directors. Who needs all that? What we do know about GoFundMe is that it has processed more than $15 Billion in donations for people who post their plight on the platform. There are at least two separate fees involved: 5% of donation is charged to the person in dire need, and 2.9% to people making the donation. 8% return on the churn. Not bad, eh?

I do NOT want anyone to assume this column is a hit piece on Tim Cadogan, despite any prior experiences you may have had with Stanford MBA’s or McKinsey consultants. He could turn out to be a perfectly decent family guy. A wife, two kids, and a golden retriever named Luna. He could be a genius who plays classical piano and cultivates bonsai in his spare time. Let’s assume the best, okay?

Here's where I break ranks with GoFundMe’s podcast though: Tim Cadogan says all this grocery begging which took place over the last 3 years on his platform is because of the $hitty US economy. An economy which has record low unemployment, record stock market highs, and record government spending on social programs. Exactly how are online grocery beggars getting screwed by the economy, Mr. Cadogan? Could this possibly be a case of a small scam snowballing, and going viral?

If anyone wants to see real economic misery, just stick around for a while. Job losses, home foreclosures, stock and bitcoin crashes. You’ll know it when it comes Mr. Cadogan, because people will stop queueing up on your crowdfunding platform to give money away to someone they’ve never met.

I'm just sayin' . . .



GoFundMe CEO says the economy is so bad that more of his customers are crowdfunding just to pay for their groceries

Tim Cadogan - Wikipedia
Top | New | Old
Roadsterrider · 56-60, M
I drive a lot and recently have seen an increase in panhandlers at rest stops, hanging out in gas station parking lots, etc. I sometimes give them some cash, I have paid for groceries, bought food, made donations of money and time to shelters. Like you, I am not looking for random "go fund me" requests just to throw money at a random stranger. A lot of what determines whether I give money or not is appearance. Guy in the street with a sign about needing food, covered in a $1000 worth of tattoos, wearing $300 sneakers with name brand clothing and a new Iphone, probably a pass. A guy that is looking for his next fix, a guy that needs a bottle of vodka, I try to not help people hurt themselves. Then there is my conscience, that little voice that whispers inside my head. If my conscience says I need to help, I help. If I am walking into a fast food joint and a guy asks for money to eat, I will usually just go in and buy extra meals, let them have their pick. I have sat on the sidewalk at McDonald's and had some wild conversations with interesting people over a burger and fries.
SusanInFlorida · 31-35, F
@Roadsterrider panhandlers - in many places - are a function of weather. Here in florida we are bracing for the seasonal migration of panhandlers from northern states to our sunnier streetcorners in the near future.
The only reason I use money online is for online shopping (such as Amazon).
I don't do donations or send money to strangers. And I don't understand how can people fall for this...
SusanInFlorida · 31-35, F
@rogy33 i recently started watching Facebook "reels". they are mostly car crashes, avalanches, and abandoned kittens. many of these "reels" contain a link to contribute or donate.

why would I donate to someone in pakistan posting an inventory of truck accidents there?
FreddieUK · 70-79, M
In the UK we have food banks run by charities who are properly controlled and who only give to those who are referred to them by recognised agencies who will have ensured that the people they refer are in genuine need.
SusanInFlorida · 31-35, F
@FreddieUK we have that in here in florida too, and possibly other US states.

it's hard to believe that between legitimate non-profit food banks, and the 41 million people getting federal food stamps, that there would be millions of people creating GoFundMe pages for (allegedly) grocery expense help.
FreddieUK · 70-79, M
@SusanInFlorida You are right to be suspicious.
Interesting you automatically assume people desperate for basic necessities is a scam.

Ignore the fact that there is a massive increase happening at the same time for pay day loans for groceries too.


GoFundMe is also becoming the largest Medical insurer in the USA too.

Pretend it is not happening all you want.
SusanInFlorida · 31-35, F
@PicturesOfABetterTomorrow the proof is in the trendline. grocery funding scams went from zero to historic highs over the past 3 years. this was AFTER the covid 19 pandemic, when people might have been expected to need grocery help
@SusanInFlorida So zero proof. Cost of living is going up to degrees not seen in decades so that is entirely what would be natural.

Once prices go up they almost never go back down. The fact covid was years ago doesn't change anything. Plus you have a president who for example doubled the price of coffee over a temper tantrum and this is exactly what you expect.

It is so common that there is even memes about how in 2025 a shopping cart is the most expensive vehicle in America.
Captainjackass · 31-35, M
I found a fake organization that claims to rescue animals yet with the smallest investigation I found out it was fake and reported them on gofundme. They didn’t do a thing despite me revealing they were frauds and showing all the evidence.
They don’t care if the people on their platform are real or fake, just as long as they get their piece of the cake.
FreddieUK · 70-79, M
@Captainjackass Disgraceful.
SusanInFlorida · 31-35, F
@Captainjackass its a conflict of interest to expect organizations like GoFundMe to police themselves. every time they kick someone off the platform, they're losing commissions.
Cadogan be investigated. I’ve never looked at GoFundMe and never intended to. Donors pay 2.8%? The poor are deprived of 5%? That’s worse that credit cards and don’t get me started on those criminals.
SusanInFlorida · 31-35, F
@jackjjackson i don't expect anyone to operate a web site for free.

but i don't think a Stanford MBA with a McKinsey consulting background to be top of the list for operating a non profit or charitable enterprise.
This comment is hidden. Show Comment

 
Post Comment