GoFundMe is the industry’s most popular online fundraising platform. With no setup fee and the support of a team of safety experts, you can fundraise or make a donation with confidence.

This platform allows you to create a good cause for people to donate funds to. For example, you can create a GoFundMe cause for shelter animals, and people may donate if they want to.

The federal government allows taxpayers to deduct certain charitable donations from your tax liabilities. And many GoFundMe causes do seem to be charitable. 

So that begs the question… are GoFundMe donations tax deductible? Let’s find out…

Are GoFundMe Donations Tax Deductible?

The short answer is maybe.

Whether your GoFundMe donations are tax deductible or not depends on a variety of factors. Many GoFundMe causes are not tax deductible. But some of them can be deducted to your taxes if you decide to donate.

When Donations are Tax Deductible

So when can you deduct a donation on GoFundMe on your taxes? If you give money to an officially recognized 501(c)(3) organization that has registered on the site.

These types of organizations can use GoFundMe for fundraising. And when they do, if you make a contribution, your contribution will be tax deductible. Just like it would be to any 501(c)(3) organization you donate to.

When Donations are Not Tax Deductible

Most of the time donations given to a personal GoFundMe fundraiser (rather than a charity fundraiser) are considered personal gifts. Because of this they are not usually eligible for tax deduction. 

This be a bit confusing because you may be giving money for a good cause on GoFundMe. However, if the donation is to an individual or group that is not a 501(c)(3), then your donation is not going to be tax deductible. It’s basically just considered a gift you are giving to someone else.

Why are Personal Fundraisers not Tax Deductible?

Many of the personal causes on GoFundMe are good and deserving causes, such as money raised for tuition, medical expenses, funerals, to name a few. However, these gifts are being made to individuals rather than to registered charities, and as a result, they are not generally tax deductible as charitable contributions.

There may be exceptional and case-specific circumstances in which the income is taxable for the organizers in question. Take, for example, if the donations are treated as taxable income by the recipient.

A Charity Campaign, on the other hand, collects donations that are funneled directly to a 501(c)(3) nonprofit organization. 

How Does GoFundMe Manage Charity Campaigns?

In Charity Campaigns the money is not handled by the GoFundMe organizer. Instead, the funds are sent directly to the charity through the PayPal Giving Fund. GoFundMe has established a special fund to make it easier for people to donate to registered charities.

Are Charity Campaigns Tax Deductible?

Only donations made to GoFundMe charity fundraisers (available in the United States, the United Kingdom, Australia, and Canada) are guaranteed to be tax-deductible. In effect, donors will automatically receive tax receipts from their charity partner. These fundraisers are administered by PayPal Giving Fund, a non-profit organization that collects and distributes donations on behalf of the designated charities.

And there you have it! In conclusion, GoFundMe donations are not tax deductible, except for certain donations.

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