Crowdfunding for Essentials: A Lifeline in a Stagnant Economy

GoFundMe CEO Tim Cadogan has sounded an alarm on the deteriorating economic landscape, revealing that an increasing number of Americans are turning to crowdfunding platforms to afford basic necessities like groceries. In a recent interview with Yahoo Finance, Cadogan highlighted a troubling shift: campaigns for essentials such as food and utilities now dominate the platform, reflecting a broader crisis of affordability exacerbated by persistent inflation and stagnant wages GoFundMe CEO says the economy is so bad that more of his customers are crowdfunding just to pay for their groceries^[1].

The trend underscores a stark reality for many households. Over the past three years, prices for essentials have surged, with food costs rising 3.2% annually in 2025, according to the Bureau of Labor Statistics Increasing Inflation and the Rise of Crowdfunding:…^[6]. Cadogan noted that GoFundMe's "essentials" category-encompassing rent, utilities, and groceries-has seen a fourfold increase in campaigns since 2023 . This surge signals a departure from traditional crowdfunding uses, such as medical bills or disaster relief, toward a system where everyday survival demands external support.

The economic strain is particularly acute for younger and lower-income households. With wages failing to keep pace with inflation, many families are forced to prioritize expenses, juggle debt, or seek unconventional solutions. A LendingTree survey found that 88% of Americans have altered their grocery habits, with 60% expressing significant stress over affording food . For retirees like Shelia Fields, the situation is dire: "We're not going hungry, but the anxiety is real," she said, citing rising prices for staples like coffee and meat Increasing Inflation and the Rise of Crowdfunding:…^[6].

Cadogan attributes the shift to a combination of factors: "Basic things you need to get through life have gone up significantly in all our markets," he said, pointing to elevated costs for housing, childcare, and transportation GoFundMe CEO says the economy is so bad that more of his customers are crowdfunding just to pay for their groceries^[1]. Even as headline inflation moderates, the cumulative impact of price increases remains embedded in household budgets. This has left many one financial shock away from crisis, according to Fortune, which has documented how families are exhausting coping mechanisms like brand switching and delayed repairs GoFundMe CEO says the economy is so bad that more of his customers are crowdfunding just to pay for their groceries^[1].

The platform's pivot reflects broader societal gaps. GoFundMe now serves as an informal safety net where traditional supports have faltered. Cadogan emphasized that the rise in grocery campaigns is not an anomaly but a "barometer of the current economy" GoFundMe CEO says the economy is so bad that more of his customers are crowdfunding just to pay for their groceries^[1]. Meanwhile, the company is expanding its role in philanthropy through initiatives like donor-advised funds (DAFs), aiming to boost charitable giving beyond its historically low 2% of GDP Grocery prices have jumped up, and there's no relief in sight^[4].

The challenge extends beyond individual households. Cadogan sees an opportunity in the impending "Great Wealth Transfer," as baby boomers pass down assets to younger generations. However, converting private wealth into public generosity remains elusive. Gen Z and millennials, who prioritize community and values-driven causes, could drive change, but systemic barriers-such as opaque DAF structures and outdated giving models-hinder progress GoFundMe CEO says the economy is so bad that more of his customers are crowdfunding just to pay for their groceries^[1].

As the economic pressure mounts, the moral imperative for action grows clearer. With millions relying on crowdfunding to meet basic needs, Cadogan's message is urgent: "If we can channel today's empathy into tomorrow's infrastructure, no one should need to pass the hat to put food on the table," he said GoFundMe CEO says the economy is so bad that more of his customers are crowdfunding just to pay for their groceries^[1]. For now, GoFundMe's platform continues to reflect a fractured financial landscape, where generosity and desperation walk hand in hand.

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