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How Does Crowdfunding Work For A Funeral?

Funerals can be expensive, sometimes people just don’t have the funds to pay for one when it is needed unexpectedly. A memorable service which does your loved one justice doesn’t have to cost the earth, sometimes even that seems out of reach. What are the options? A no service no attendance cremation is one of the cheapest options, however I absolutely understand why this option isn’t for everyone. No interest ever finance options are also available and provide the relief of knowing that you can provide the funeral for your loved one that they deserve and not have to come up with the total amount upfront. Another option is Crowdfunding. I’m sure most people have seen or heard of pages like GoFundMe. Crowdfunding is definitely something that can be done to raise money for a funeral. We have had a few families who have used crowdfunding to pay for a loved one’s funeral service.

When it comes to crowdfunding for a funeral there are a few little things to keep in mind. Firstly, the host company (GoFundMe for example) takes a fee, usually between 5-7% of the total money that is raised. It may not sound like much, but it does add up. It is also important to put up pictures or a video of the person that you are raising money for, along with a written explanation of why the money is needed. From what I have seen the more in-depth the explanation the better response it receives. Also adding regular updates has shown to be popular with keeping those who have donated informed of any progress.

There are some risks with running a crowdfunding campaign. There is no guarantee that you will raise all of the money needed or any at all. When doing an arrangement with a Funeral Director there will be paperwork to sign and that is essentially a contract. The Funeral Director is agreeing to take your loved one into care and make all the necessary arrangements for their Funeral based off of your requests. If the crowdfunding doesn’t work, the Funeral Home still needs to have the account settled. Its always wise to have a backup plan. Personally, I’d suggest setting up a no interest ever payment plan. If and when the crowdfunding comes through, the finance can be settled with no additional fees or penalties. Another risk is that someone may set up a crowdfunding campaign for a loved one and raise a good amount of money. There is no way to stop that person from not giving the money to the intended recipient. Something like that is wrong on so many levels but unfortunately it does happen and its something to be aware of. Scam crowdfunding is definitely something that goes on regularly.

My personal experience with crowdfunding has been positive. The families who have used crowdfunding to pay for their loved one’s services have raised the money that they needed without any issue. It was straightforward and simple and in the end they all have been touched by the overwhelming response of people who reached out to help them in a time of need. Sometimes, a little bit of love from the place you least expect it helps in a time of sadness.

What do you think? Would you use crowdfunding as a way to raise money for a funeral? Do you think crowdfunding should be used for that?

If you have questions about crowdfunding or questions about funerals in general, why not get in touch with us on 1300 043 522 or email [email protected]

*Our Funeral Blog is a place for information and learning, so if there is something that you would like to know, why not shout out to us on social media so we can answer your questions in one of our future blogs!*

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