GoFundMe CEO has said that the economy is so bad that more of his customers are crowdfunding just to pay for their groceries

Tim Cadogan stated that an increasing number of customers are using the platform to raise money for basic needs like groceries due to economic challenges. He noted a rise in campaigns for essential items, shifting from one-off emergencies to ongoing survival, which he described as a concerning trend for the economy. This is happening because inflation has increased the cost of living, making it difficult for many households to afford essentials. 

• Increased essential fundraisers: GoFundMe has seen a rise in campaigns for basic necessities like groceries, rent, and bills.
• Shift in crowdfunding purpose: The trend shows a shift from fundraising for occasional emergencies to gathering funds for everyday survival.
• Economic indicator: Cadogan views this as a warning sign for the economy, reflecting the widening gap between household incomes and the cost of living.
• Cause of the trend: The increase is linked to persistent inflation and rising costs for daily necessities, which are straining household budgets across different countries

Watch Tim Cadogan sit down with Yahoo Finance Executive Editor Brian Sozzi on the Opening Bid Unfiltered podcast: