NOW IT’S BETTER LIVING THROUGH CROWDFUNDING
In the US, many are turning to websites to raise money for medical expenses, and the results have been good
Sometimes paying for a loved one’s health care expenses literally takes a crowd. Norm Breyfogle, an American comic book artist known for his work on Batman, found himself struggling after a stroke in December. He had no health insurance. He was partly paralysed on his left side, unable to use his valuable drawing hand. And Breyfogle, 54, was in a nursing home in the Upper Peninsula of Michigan, facing months of physical therapy.
Worried about his brother’s rapidly rising bills, Kevin Breyfogle decided to step in. He started a crowdfunding campaign, which raises small donations from donors, on the site YouCaring.
“We had to come up with something really quick,” Kevin Breyfogle said, adding that crowdfunding worked better than he imagined. His crowdfunding team set a goal of US$200,000 (6.5 million baht) to pay for his brother’s continuing care, raising $20,000 in the first day.
As more caregivers face paying for loved ones’ unexpected out-of-pocket health care costs, they are turning to crowdfunding sites that focus on personal causes like Breyfogle’s. Sites like GiveForward, GoFundMe and Fundly have devoted sections to health expenses, including specific diseases like cancer.
Even the crowdfunding powerhouse Indiegogo has stepped into the personal crowdfunding arena with its introduction of Indiegogo Life, which includes medical fundraising, in December.
High out-of-pocket health expenses in the United States can quickly deplete a sick person’s financial resources. According to a 2014 Commonwealth Fund survey, 87% of people age 65 or older in the United States have at least one chronic illness. Despite Medicare coverage, though, older adults have more difficulty paying for their care than peers in other developed countries, mostly because of out-of-pocket costs and limits to care, the survey found.
To fill the void, crowdfunding sites are stepping in, with people posting requests for donations to pay for funerals, out-of-pocket medical expenses and, sometimes, interim nursing home care.
The Chicago-based GiveForward, for example, has helped raise $149 million for crowdfunding campaigns since starting in 2008, said Ethan Austin, the organisation’s president and co-founder. And most of the money goes to meet unexpected medical expenses, he said.
“No one should have to go through a difficult illness alone,” he said, adding that more baby boomers are using it for their parents’ care. “And giving someone the opportunity to help is a big gift.
“Five years ago, no one would have crowdfunded expenses,” Mr Austin said. “But there’s a tidal shift coming as healthcare expenses rise.”
Caregivers worry most about financial concerns, said Brooks Kenny, executive vice-president at Lotsa Helping Hands, an organisation that offers resources to caregivers and volunteers in the Washington area. So crowdfunding can be a powerful solution, she added.
In a mobile society, crowdfunding can cast a big virtual net. Buckley Fricker, a geriatric care manager and president of Buckley’s for Seniors, which offers non-medical care to older people, said Americans no longer lived in communities where everyone helped take care of a sick elder. In its place, technology can pull from all areas of the country.
“Technology is breaking down solid walls with virtual windows,” Mr Fricker said. “And it can virtually recreate the family.”
Don’t expect to go back to the electronic money trough often, though. Fundraising for unusual expenses works best, Ms Fricker said. “The need for geriatric care is so far and wide that it’s hard to draw out interest,” she said. So crowdfunding is more successful with extraordinary circumstances, such as Mr Breyfogle’s.
“Infinite dragging on of expenses won’t garner support,” Ms Fricker said. People want to visualise the difference they’re making, such as outfitting a home with an elevator or buying a new wheelchair.
Once there’s a specific need, building a wide network is crucial. Don’t just rely on the biggest and best crowdfunding sites to help you, Ms Fricker advised, but use emails and Facebook to pull in more donations. Mr Breyfogle was able to draw on a fan base of 5,000 Facebook friends, but having friends spread the word to other friends helps, too, experts said.
They can even be friends from clubs, churches or schools. “Tap into your network communities where lots of people know each other,” Ms Kenny suggested.
“Crowdfunding is never going to be a platform where millions give,” explained Mr Austin. “Usually, 80% of the people who contribute are people you know rather than strangers. The key is getting people with big, active networks involved.”
Start the process with closest friends and family to build momentum, he suggested.
The Pataki family turned to their friends and family to help pay for a health expense gap after Marguerite Pataki, a 76-year-old California resident who had a stroke last summer, was placed in at-home care rather than a nursing home, which health insurance would have covered.
“Suddenly costs started snowballing,” said Monica Pataki, Marguerite’s daughter, who lives in Arizona. “My dad was wading through a morass of bills and fees.” And the Pataki children were quickly running out of money.
So the family started a fundraising campaign on GiveForward in early December to raise $11,648 to pay for a caregiver and other expenses. “Within 15 minutes, we were set up online,” Ms Pataki said. “Short of selling everything we have, this is the best thing we could come up with.” To rev up the campaign, the Patakis sent out dozens of emails.
One of the donors was Marlene Robinson, who lives in California and knows the Patakis. Ms Robinson, who believes in spreading goodwill, made a small donation. “I want to support campaigns I resonate with,” said Ms Robinson, a self-employed inventor. “It’s about connecting with things that feed a purpose.”
Asking for small contributions increases the chances of getting participation, Ms Fricker said, and the various crowdfunding sites usually allow donations starting at one dollar.
At the heart of any good campaign is a compelling story, though. So adding lots of photos and detailed information about the loved one can increase donations, experts say. The Patakis ultimately added six more photos to their crowdfunding campaign page. Adding video, even taken with a cellphone, can add more personal colour.
“You can raise 150% more with a video,” said Danae Ringelmann, a co-founder of Indiegogo.
Older, less technologically adept donors may baulk at giving money online, though. So the Patakis called some elderly family friends on the phone. “Speaking to them works better,” Monica Pataki said. “And they’ve been kind and sent cheques.”
The family had to overcome some discomfort about asking for money, Ms Pataki acknowledged.
“You’re laying out your dirt online,” she said. “And it’s humiliating.” As the campaign evolved, however, the Patakis found that donors were touched by their mother’s story rather than pitying their lack of money.
Crowdfunding can be an excellent way to bring in money that’s tax-free. The IRS treats these personal-cause donations as gifts for recipients, Mr Austin noted.
Fundraisers may need to spend money to make money, though. Some personal crowdfunding sites charge fees for their services. GiveForward, for example, charges a 7.9% fee plus 50 cents per donation transaction.
For Mr Breyfogle, though, crowdfunding has become the difference between hope and despair. Although the campaign continues for another month, “I don’t feel that I’m in dire financial straits any more”, he said.
Short of selling everything we have, this is the best thing we could come up with