The concept of crowdfunding was introduced back in 2006 – at least that’s when the phrase was coined. Then in 2008 Indiegogo and KickStarter were launched, and crowdfunding started to catch on.
At first it was used by artists, musicians and grassroots organizations as a way to raise funds for events or a particular cause as well as startup businesses that were trying to get off the ground. Over the years the use of crowdfunding has expanded significantly. One surprising way people utilized crowdfunding was to raise money to cover the cost of funeral services.
When you think about the typical cost of funeral services it isn’t too surprising. Funeral service costs have been rising over the years, and traditional services range between $6,280 and $8,300 on average depending on whether you choose burial or cremation. That’s a pretty significant financial burden for many families, especially if the death occurred suddenly and the deceased had no life insurance coverage.
For many people the solution for covering the costs isn’t a credit card, it’s crowdfunding.
The Rising Trend of Crowdfunding Funeral Services
Raising money for funeral expenses isn’t a new thing, but it has become much more common in recent years. Some may be surprised to learn that in the past GoFundMe as stated 13% of their crowdfunding campaigns are for memorial and funeral services. That means 1 out of every 8 campaigns is for that purpose. GoFundMe puts the total at around 125,000 campaigns a year that raise $330 million.
And that statistic is from 2013. Since that time crowdfunding for funeral services has grown a lot. So much, GoFundMe has created tools specifically for people who are raising funds for memorials and funeral services. They’ve also created step-by-step guides for using their service for this purpose. Guess you could say GoFundMe is the official source for funeral service crowdfunding.
Who is Doing the Crowdfunding and What It Pays For
It comes as no surprise that the people who are crowdfunding death care tend to be younger. A survey from the Funeral and Memorial Information Council (FAMIC) that was taken in 2015 found that of those surveyed 17% of people in the 20-39 age range used crowdsourced funds to pay for funeral services. However, only 4% of people 40 and older had done the same.
This is particularly noteworthy given that fewer people in the younger age group have had to help arrange funeral services. Now 10 years later, that same group is more likely to be in that position and even more likely to turn to crowdfunding for financial assistance.
But don’t think that families are trying to get money so they can pay for elaborate services they otherwise wouldn’t have chosen. In actuality, because of the transparency, often families go with simpler services that cost less. This suggests crowdfunding is being used because there is a real need. And with how expensive some death care services are, it is understandable.
Plus, going off of GoFundMe’s data, on average people raise $2,640 for death care services. That would cover the typical cost of direct cremation, but not other services or indirect costs related to the death.
Using Crowdfunding to Cover the Costs of Funeral Services
At this point you may be wondering how crowdfunding funeral services works. Here’s a quick rundown of how people do it to get a better idea of whether or not it’s an option you want to explore.
*Something to keep in mind is that, like some funeral services, things need to move quickly if you plan to set up a crowdfunding campaign for death care expenses. GoFundMe notes that campaigns on their platform are generally only a week to two weeks long when they are done for the purpose of covering funeral, memorial and/or disposition expenses.
Signing Up With a Crowdfunding Platform
The first step to starting a crowdfunding campaign is signing up for an account on a platform. The most popular platforms today for crowdfunding funeral services are Kickstarter and GoFundMe. GoFundMe now has special tools specifically for this purpose, which makes it a popular choice.
Providing Details About the Deceased and the Need
The campaign page should include details about the deceased as well as what the funds are being used for. Many people struggle with this part because it can be emotional. However, it can help by approaching it as an opportunity to share your loved one’s story. It’s a good idea to use the deceased’s name in the title of the campaign and to include a few pictures.
And be specific about the funeral costs that the campaign will cover. It’s only logical that many people question what the money is being used for if they are donating.
Setting a Fundraising Goal
To launch a campaign a fundraising goal needs to be set. This is the total amount that is needed to cover the costs. Total up the estimated costs of the funeral services to come up with the goal. Often, people actually end up exceeding the amount.
*Keep in mind that the crowdfunding platform will take a small percentage of the amount that’s raised. Usually, the fee is 3-8% and there may be a small charge per contribution.
Share the Crowdfunding Campaign With Others
Once the campaign is created it’s time to share it with others so they can contribute:
- Share a link to the campaign on social media.
- If you are doing an obituary you can also include information about the crowdfunding campaign. If it’s online, include a link to the campaign page.
- Send direct contacts a text or email letting them know about the campaign and how they can contribute.
Cremation.Green helps out families during the difficult period of loss by easing the burden of funeral planning and offering death care services that are eco-friendly and economical. If you’d like to know more about the costs involved with different death care options, please contact us at any hour for a customized quote.