Donation crowdfunding and private loans: key differences

A donation campaign does not create a loan by itself

Donation crowdfunding asks supporters to contribute without an expectation of contractual repayment. Private lending creates an obligation to return money under agreed terms. Keep these arrangements distinct: a campaign described as a gift should not quietly promise interest or financial returns to selected contributors. Explain the need, the intended use of funds and how supporters will receive updates, while protecting sensitive information about the person receiving help.

Describe the purpose and use of contributions

GoFundMe publishes its Canadian pricing and the charges relevant to receiving donations. Check payout verification and timing as well as the amount raised; a campaign total is not necessarily money immediately available for a bill. For a repayable arrangement, People’s Law School offers guidance on documenting a personal loan in British Columbia. Neither fundraising nor support from acquaintances is guaranteed, so avoid committing to an essential payment solely because a campaign has been launched.