Americans are now using GoFundMe to buy groceries, reveals CEO Tim Cadogan, says ‘basic things have gone up…’

Tim Cadogan, CEO of GoFundMe said that majority of his American customers are now using the crowdfunding platform to fund food and groceries, according to reports.

Noting the challenging economy, Cadogan told Yahoo Finance and Opening Bid Unfiltered Podcast there is a significant shift away from original campaigns that were for emergency requirements, medical bills, disaster relief, and similar big expenses, to everyday survival.

“In some cases, very sadly, that is happening. We're seeing it more and more,” he told Yahoo Finance.

Inflation hitting common Americans hard

“Basic things you need to get through life [have] gone up significantly in the last three years in practically all our markets,” Cadogan said.

He noted that people are asking strangers to help pay for food, indicating that for a growing number of people, inflation has hit hard.

“One indicator that's interesting is we have a category we call essentials. Basic things you need to get through life [have] gone up significantly in the last three years in practically all our markets,” Cadogan said. Rent, utility bills, and car payments fall under the essentials category.

Latest data released on the latest Consumer Price Index showed prices are up 2.9 per cent annually in the US, while the USDA reported that overall food prices would increase by 3 per cent this year.

US to see historic wealth transfer?

Cadogan further noted that the US is entering a period of historic “wealth transfer” as the baby boomer generation passes on “tens of trillions” in inheritance and charity.

“Currently, one of the things that we're really focused on is how do we increase the total amount of GDP that goes to giving. It's about 2 per cent. It's nothing, it's pretty modest, and it's been stuck there for 50 years,” he said.

The report said GoFundMe's CEO hopes younger donors, “who are often more values-driven, digitally native, and community-oriented”, will donate more.

Since its 2010 launch, GoFundMe has seen 200 million users, and raised over $40 billion. The company is in 19 countries, and an estimated one-third of Americans have used its services, according to Cadogan