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Crowdfish and GoFundme crowdfunding platforms are popular tools to collect funds. But whether you are at the end or receipt of these fundraising, it is important to understand the tax consequences of a campaign.
The good news is that, if you are the beneficiary of a GoFundme campaign, you will generally not have to taxes on the money you receive, provided that you follow certain rules of the IRS. The bad news: if you donate to a campaign, you will probably not be eligible for a tax deduction.
Read the rest to find out how GoFundme taxes work, you receive money or make a donation to a campaign.
To understand if your Gufundme contribution is a tax deductible, you must first understand how the charitable deductions work. If you detail your income declaration using Annex A, you may be able to deduct certain charitable contributions. A tax deduction reduces your taxable income, which means that you ultimately have less to the Internal Revenue Service.
But for detail to have a meaning, all your deductions – which can also include things such as mortgage interests and unreformed medical invoices – must add more than the standard deduction, which is the amount that any taxpayer can deduce independently of their actual expenses.
During the taxation year of 2024 (for which declarations were due on April 15, 2025), the standard deduction is $ 14,600 for single declarants and $ 29,200 for married couples which produced a joint declaration . These amounts increase to $ 15,000 and $ 30,000, respectively, for the taxation year 2025. Almost 90% of taxpayers take the standard deduction instead of detailing, which means that they are not eligible to deduce Charitable contributions.
If you detail, you can generally deduct charities of up to 60% of your gross adjusted income. But a limit of 20%, 30% or 50% can be applied in certain situations.
Find out more: Depart or take the standard deduction – What is the best?
GoFundme has two types of fundraising campaigns: staff and charity. Usually, only donations to charitable fundraising are tax deductible.
Many campaigns you see on crowdfunding platforms (Kickstarter is another popular) and social media are personal fundraising. For example, you can see a campaign to help a person faced with significant medical expenses or at funeral costs of a loved one, or to someone who needs to replace their goods after destroying it from their house. Contributions to these fundraising are generally considered as personal gifts and are not guaranteed to be charity deductible taxes. Donors of personal campaigns will not receive a GoFundme tax receipt.
However, if you contribute to a certified charity collection, GoFundme guarantees that your donation will be deductible from tax in the United States, Canada, the United Kingdom, Ireland and Australia. You will automatically receive a tax receipt from the registered charity of GoFundme, Paypal Giving Fund. You can also make tax deductible donations via gofundme causes, which allows you to contribute to tax -exempt organizations and funded funds in support of specific themes such as education, environment or animal rescue.
Pro advice: Consult the fundraising page if you have donated to a GoFundme campaign and you do not know if fundraising was a personal or charitable campaign. For charitable fundraising, the name of non -profit organization or charitable organization will appear alongside the name of the organizer.
When the gift taxes apply, they are always paid by the donor rather than by the recipient. Although donations to personal Gofundme campaigns are generally considered to be gifts, you probably don’t have to worry about paying a federal tax on these Gofundme gifts.
This is because something called the exclusion of annual gifts applies. You can give gifts to an unlimited number of people until the annual gifts, which is $ 19,000 in 2025.
But even if you give more than $ 19,000 to the personal fundraising of someone from Gofundme in 2025, it is unlikely that you will have gift taxes. You will simply have to inform the IRS by carrying out a declaration of income for gifts.
To have the gift taxes, the personal gifts you have made during your lifetime should add more than the amount of exclusion for life, which is $ 13.99 million in 2025.
If you organize a gofundme campaign for someone else, the money you collect will not be taxable as long as you distribute the funds to the beneficiary of the campaign.
Being the beneficiary of a GoFundme campaign will probably not have a tax bill. Donations to a crowdfunding campaign which aims to benefit an individual are generally treated as personal gifts and are not subject to income tax.
However, there are a few situations where money collected via gofundme could be treated as a taxable income. If the donors have received something of value to give money – which is common when small businesses collect funds thanks to crowdfunding – money could be taxable. For example, if you collect funds for your small business and reward contributors with a t-shirt or a magnet, you will probably have to report the product as a company income.
Another situation where you may have taxes on your GoFundme campaign occurs if your employer donates. Generally, any contribution to your employer to your advantage should be included in your gross income.
If you receive more than $ 600 from a crowdfunding campaign, the platform can send you the IRS 1099-K form, which is used to report income from third-party payment and online markets, as well as Credit cards, debit cards and gift cards. Obtaining Form 1099-K of GoFundme or another crowdfunding site does not necessarily mean that you need taxes. But you will always have to report income when you make up your taxes.
Pro advice: The IRS recommends that the organizers and beneficiaries of the crowdfunding campaigns maintain registers on the campaign and the disbursement of funds for at least three years.
Find out more: What is taxable income?
If you are the beneficiary of a GoFundme campaign, you will want to consult a tax system before producing your declaration. It is essential to ensure that you respect all the rules so as not to be struck by an unexpected tax invoice. You will also want to ask for advice on files and tax documents that you should keep in case the IRS has questions about the campaign.
Donors may also want to ask a professional for advice, such as a CPA, in some cases. If you take the standard deduction and have contributed $ 25 or $ 50 to a GoFundme campaign, the use of the income declaration software may be sufficient because your donation would not affect your taxes. But if you have made contributions to a substantial sufficiently substantial to have tax consequences, ask for the help of a professional. A tax trainer can analyze your tax situation and help you determine whether your contributions are tax deductible and, if necessary, how to maximize the value of your deduction in your tax planning.
Is GoFundme a 501 (C) 3?
GoFundme is a for -lucrative company, not an organization 501 (C) 3. However, computer science joins and supports GoFundme.org, which is an independent organization 501 (C) 3, also known as a qualified charitable organization , which manages Gofundme provokes fundraising.
Do people have to pay taxes on the money collected from GoFundme?
Usually, when you receive money from a GoFundme campaign for personal expenses, such as a medical bill or funeral fees, it is considered a gift and is not taxable. But there are a few exceptions: if donors have received something of value when they contributed or your employer made a donation, you could face a tax responsibility.
How much money can a person receive as a gift without being taxed?
When gift taxes apply, the person gives the gift, rather than by the person who receives the gift. You can give gifts to the annual exclusion amount ($ 18,000 in 2024 and $ 19,000 in 2025) to an unlimited number of people. If you give gifts above these thresholds, you will have to produce a declaration of income for gifts. However, gift taxes only apply to those who give millions of dollars during their lifetime.
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