Why People Are Now Crowdfunding for Groceries as Costs Rise

People aren’t just using GoFundMe for emergencies anymore. More and more, they are using it to buy groceries. That is the word from GoFundMe CEO Tim Cadogan. On a recent podcast, he revealed a sharp jump in campaigns for daily needs like food, rent, and utility bills. It is a big shift from the site’s earlier days, where it mostly helped people in crisis, like covering surgery costs or rebuilding after disasters.

Cadogan says this trend reflects a deeper problem. The cost of simply getting by has soared. Over the past three years, prices for basics have shot up across nearly every country where GoFundMe operates. Groceries, gas, childcare, you name it, it is more expensive. And people are struggling to keep up.

Once upon a time, folks might have turned to family or cut back on extras. But that cushion is shrinking. Now, more are turning to the kindness of strangers online, not for a one-time emergency, but to feed their kids and keep the lights on.

Groceries Are Now a Luxury

It is not just about prices climbing. It is about the fact that those prices haven’t really come down.

Shvets / Pexels / Sure, inflation isn’t rising as fast as before, but that doesn’t mean things are cheaper. Most households are still paying a lot more than they did in 2020.

Milk, eggs, diapers, gas – all of it adds up. And without extra income to match, budgets are stretched thin.

People have already tried the usual workarounds. They buy store brands. They clip coupons. They use credit cards more. But there comes a point when there is nothing left to cut. That is when some are turning to GoFundMe. Not for luxuries, but for rice and bread.

This isn’t just happening in the U.S. In the UK and other countries, food costs are a major reason people feel worse off today. When families start asking for help just to eat, it tells us something is seriously broken.

When Wages Can’t Keep Up

The rise in food-based fundraisers isn’t just about personal hardship. It is a sign that something larger is off.

Wages haven’t kept up with inflation. Government benefits help, but they don’t cover everything. And many safety nets are full of holes. So people turn to each other. GoFundMe has become a kind of unofficial welfare system, where generosity fills the gap that institutions can’t.

Matt / Pexels / Cadogan sees this as part of a bigger mission. He wants to harness this moment to boost giving on a national scale.

For decades, charitable donations in the U.S. have hovered around 2% of GDP. His goal is to change that.

And maybe it is possible. GoFundMe has already helped raise over $40 billion worldwide. Now, it is rolling out new tools, such as GoFundMe Pro, to make it easier for nonprofits to grow and raise money.

The Rise of Micro-Donors

One group that could help push things forward? Young people. Gen Z and millennials are already into crowdfunding and mutual aid. They don’t wait for a charity gala. They send five bucks to a stranger on Venmo or chip in to a friend’s rent on GoFundMe.

Cadogan is betting big on this energy. If enough people give small amounts regularly, that could move the needle more than a few big donations a year.

Donors now want to see exactly who they are helping. They want to scroll through a story, feel a connection, and give right then and there. It is fast, emotional, and direct.