Crowdfunding and fundraising for a funeral
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Crowdfunding a funeral in New Zealand means asking friends, whānau and the public to give money online towards the cost. Givealittle, a New Zealand platform, charges a flat 5% fee on the amount raised, pays out in the month after the money is raised, and will not release funds until the payee is verified. Check the timing, the fee and the Funeral Grant before you launch (all as at 20 October 2026).
A funeral crowdfunding campaign is a voluntary appeal: nobody has to give, and the money is not guaranteed to reach the amount you need. FDANZ, the funeral directors' association, notes that "Some families also seek support through GiveALittle (online donation) campaigns", alongside the Work and Income grant, which "will not cover the entire cost of a funeral" (FDANZ: financial matters). A campaign suits being one source among several, started once you know the real figure. Three practical points shape the decision. First, funeral directors may ask for an upfront deposit, while crowdfunded money can arrive weeks later. Second, platform fees come off what you raise. Third, a donated balance might be counted in some grant assessments, and the government pages we read do not say. Each is covered below. This page is general information, not tax or legal advice.
How Givealittle's terms work
We read Givealittle's own help pages on 20 October 2026. Other platforms have their own terms, which we have not reviewed, so read each one before you choose.
| Question | What Givealittle says |
|---|---|
| Fee | "Our fee is a flat 5% of the total amount raised." The fee is GST inclusive. Donors can add a top-up at checkout to cover it. A separate help page describes an "effective" average of about 2%, because many donors top up |
| When you are paid | "Funds raised in a particular month are paid out the month following, between the 20-25th." Early payment is possible and handled case by case |
| Who can run a campaign | Individuals, groups and businesses; funds go to a New Zealand bank account |
| Verification | The payee details "need to match the name of the person stated on the page", and "no funds will be paid until verification is complete" |
| Listing | Moderation and donor validation happen before a page appears in search results |
Source: Givealittle FAQ and fee explainer, read 20 October 2026. The two pages describe the fee differently (5% flat, or about 2% in practice), so budget for the 5%.
The payout rule is the main practical limit. If the funeral is next week and the campaign starts today, the money may arrive after the director's account is due, so you may need to pay the deposit another way and use the donations to reimburse whoever paid. Ask Givealittle about early payment as soon as you open the page.
The steps
- Get the real number. Ask the funeral director for a written, itemised estimate and decide what the campaign is for. Our funeral costs hub shows typical ranges.
- Check other help first. Apply for the Work and Income Funeral Grant and, if the death followed an accident, ACC. Neither depends on a campaign.
- Choose the person who will receive the money. Their name has to match the campaign page and their bank account has to be in New Zealand.
- Write a plain page. Say who died, what the money is for, the amount you need and who the funeral director is. A specific amount tells donors what the money is for.
- Keep records. Keep the director's estimate, the invoice and receipts. If anyone asks where the money went, you can show them.
- Say what happens to any surplus. Decide in advance, and write on the page, whether leftover money goes to a charity, a headstone or the family.
Does it affect the Funeral Grant?
Work and Income tests the funeral grant against assets. If the deceased was not your partner or child, their assets are counted. If they were your partner or child, the first $2,351.46 of your own assets is ignored and the rest, with the deceased's, is counted (Work and Income). Its definition of cash assets lists shares, bonds, bank accounts including term deposits, and life insurance proceeds, but the page does not mention donations or crowdfunding (Work and Income: definition of assets). We found no guidance on how a campaign balance held in your account is treated. Ask Work and Income on 0800 559 009 before you apply, and describe the campaign. The grant pays the lesser of its maximum of $2,697.43 or the unmet balance, so money already raised may change what is "unmet".
Is the money taxable?
We cannot say. Inland Revenue's page on ordinary-rules income says whether an amount is income depends on "factors like the relationship you have with the payer, why you got the payment, and how much you rely on the payment", and links to a ruling on when gifts are assessable income (Inland Revenue). It does not say whether a funeral appeal is covered. Givealittle says its 33.33% donor tax credit applies only to a verified payee with Donee Tax Status, decided by Inland Revenue, and only if the page gives you or your family no direct benefit, so do not tell donors a credit is available for an appeal to pay your own family's funeral bill (Givealittle FAQ). For a large campaign, ask Inland Revenue or an accountant.
Protecting donor trust
Fraud claims in grief are damaging, so give donors what they need to check you. Name the funeral director, post the estimate, and update the page when the invoice is paid. Do not share the campaign link in public groups before the family agrees; the choice to seek donations is a family one.
If the campaign falls short
The usual fallbacks are the grant, a smaller service, or asking the bank to release funds from the deceased's account for the funeral (govt.nz). A plain direct cremation is the smallest option in FDANZ's survey, and our guide to funeral costs when an estate has no money lists the council options. If you are paying for a parent's funeral, see paying for a parent's funeral.
Planning ahead
Some people avoid the need for an appeal by arranging cover for their own funeral. Momentum Life's Funeral Insurance, issued by Momentum Life Limited, is open to New Zealanders aged 40 to 75, with no health questions, and pays a fixed $3,000 to $30,000 towards costs. Its first 24 months pay only for an accidental death (within 90 days of the accident), with premiums refunded for any other death. Premiums paid over the years can exceed the benefit, which may also fall short of the funeral bill. Momentum is rated B (Fair) by A.M. Best (financial strength). A savings pot or a prepaid plan can do the same job: see funeral insurance.
Adviser's view
Crowdfunding can help a family cover a shortfall, but it is slow compared with a funeral director's timetable and it carries fees and unanswered questions. Givealittle's published terms pay out the month after the money is raised, and neither Work and Income nor Inland Revenue's pages say how donated funds are treated. Start the grant application and the director's written estimate first, and treat the campaign as top-up money.
Talk to a licensed adviser about funeral cover · free, no obligation.
Cite this page QuoteHub NZ (2026). Funeral Crowdfunding NZ: Fundraising and Fees. www.quotehub.co.nz/guides/when-someone-dies/funeral-crowdfunding-nz. Updated 2026-10-20.
References
- Givealittle: FAQ
- Givealittle: About our fee
- Work and Income: Funeral Grant
- Work and Income: definition of assets, Funeral Grant
- Inland Revenue: Income under ordinary tax rules
- FDANZ: Financial matters
- govt.nz: What to do when someone dies
Explore related pages: Life Insurance, Income Protection, Health Insurance, Trauma Insurance, Referral.