Giftabiz vs. GoFundMe: Which Is Better for Launching a Small Business?

GoFundMe charges no platform fee but deducts 2.9% + $0.30 from each US donation, so the recipient gets less than was given. Giftabiz is built only for small business launches: the giver pays a 5% fee plus processing on top, and the owner keeps 100% of the gift.

When you're about to launch a bakery, a salon or a studio, the people around you usually ask the same thing: "How can I help?" A crowdfunding link is the obvious answer, and GoFundMe is the name everyone knows. But GoFundMe was built for every kind of cause, from medical bills to memorials. Giftabiz was built for one moment: a small business launch. This guide compares how each works, what the fees look like on a real $100 gift, how each feels to share with friends, and when each one is the better pick. We'll keep it fair: GoFundMe is a great tool for plenty of situations.

How does GoFundMe work for a small business?

GoFundMe lets anyone start a fundraiser, write a story, set a goal and share a link. People donate by card or wallet, and the organizer withdraws the money to a bank account. Plenty of owners have used it to cover a launch, a recovery after a disaster or a slow season, and guides such as Merchant Maverick's walkthrough show how.

On fees, GoFundMe's own help center says it's "always free to start and manage a fundraiser." There's no platform fee in the US. A transaction fee of 2.9% + $0.30 is deducted from each donation, which it describes as the only fee on a single donation. Donors can also leave an optional tip to GoFundMe, which they can set to zero. Recurring donations carry a higher 5% fee.

The key detail: the fee comes out of the donation. If your friend gives $50, you receive $48.25.

How does Giftabiz work?

Giftabiz is a gifting page for someone launching a business. The owner creates a page for the launch, shares one link, and friends and family send gifts, each with an optional video message. It's in early access right now, and you can request a spot from the homepage.

Under the Terms of Service, the money works like this:

• The giver pays a 5% platform fee on top of the gift.
• The giver also covers Stripe card processing (about 2.9% + $0.30).
• The business owner keeps 100% of the gift, paid to their own Stripe Connect account. Giftabiz never holds funds.
• Every contribution is a gift: no equity, no rewards, no repayment, nothing owed back.

You don't need an LLC. Sole proprietors, DBAs, LLCs, corporations and nonprofits are all welcome under the community guidelines. To receive payouts you connect a Stripe account, and Stripe verifies your identity and tax details as part of its sign-up.

What are the fees on a $100 gift?

Here's the same $100 gift on each platform, using GoFundMe's published US rate and Giftabiz's terms.

So Giftabiz isn't "cheaper" in total. Givers pay more out of pocket than the gift itself, and GoFundMe donors who leave a tip also pay more than their donation. What changes is the promise: on Giftabiz, a $100 gift means $100 for the business.

Which feels better to ask friends for?

Fees are only half of it. Asking people for money is awkward, and the platform shapes how the ask feels.

• The framing. A GoFundMe page sits in the same feed as emergencies and medical bills, so a launch can read like a request for rescue. A Giftabiz page is built to celebrate a launch, so the ask reads as "come be part of this."
• The message. Giftabiz pairs each gift with a video message, so the owner gets encouragement, not just a transaction list.
• The math your people do. Some givers like knowing their exact gift arrives in full. Others prefer to pay only the amount they typed. Neither is wrong.
• The tax question. Neither is a charity deduction. GoFundMe's donor tax page says personal fundraiser donations are generally personal gifts and not guaranteed to be deductible, and gifts to a business owner on Giftabiz are personal gifts too. For the receiving side, see is gifted money taxable for a small business owner.

When is GoFundMe the better choice?

GoFundMe is often the right tool, and we'd say so to a friend:

• Personal and emergency causes. Medical costs, funerals, disaster recovery and family hardship are what GoFundMe is known for.
• Charity fundraising. GoFundMe supports fundraisers for registered nonprofits, where donors can get tax receipts.
• Reach beyond your circle. A big, well-known platform can help a story spread to strangers.
• You're not launching a business. Giftabiz is only for business launches, so anything else belongs elsewhere.

When is Giftabiz the better choice?

• You're launching or about to launch a small business and want one link for the people already in your corner.
• You want every gift to arrive in full. The giver covers the 5% and processing, so the owner keeps 100%.
• You want the money paid straight to your own Stripe account, with no platform holding funds.
• You want it to feel like a launch party, with video messages from friends and family, not a plea for help.
• You want it clearly a gift. No rewards to ship, no pre-orders to fulfill, no equity, which keeps the gift line simple.

Frequently asked questions

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This guide is general information, not tax or legal advice. Fees are as published by each platform on the date above and can change; check current pricing before you choose.