GoFundMe works miracles during COVID-19, while government funding under the CARES Act fails to meet its goals, states a must read assessment from the Foundation for Economic Education.
The report noted that while the federal government has spent trillions of taxpayer dollars to fight off widespread poverty and unemployment created by COVID=19 and the relentless government lockdowns through $2+ trillion CARES Act, it failed on a variety of crucial levels to actually do what it set out to accomplish. So much of the government CARES Act funding was brought with waste, fraud and abuse.
On the other hand, the GoFundMe private charity site actually did accomplish miracles and put money directly where it was needed most: in the hands of those who were on the verge of losing their businesses or homes.
The crowd-sourcing website let individuals post their public pleas and raised generous donations for those in need “beyond their wildest expectations,” according to the Foundation for Economic Education.
According to the GoFundMe report: “Between March 1 and August 31, 2020, the GoFundMe community responded to the widespread impact of the pandemic by raising over $625 million through over 9 million donations for frontline workers, small businesses, causes, organizations, and more.”
More than 150,000 different fundraisers were started for COVID-19 relief, with causes as varied as fundraising for small businesses ruined by lockdowns, medical fundraising, protective gear for frontline workers, memorial services, and more.
On the other hand, the CARES Act situation failed on numerous levels. “It resulted in a broken system where 70 percent of the unemployed could earn more by staying home than by working,” as reported. The program lost roughly $26 billion to fraud and abuse. That is equal to the amount the entire unemployment system paid out in 2019, according to the report.
For the full report go to FEE here.