Do You Have To Pay Taxes On GoFundMe Income?

Do You Have To Pay Taxes On Gofundme Income? As a creator on income-partners.net, this is a common question we encounter, and the short answer is, it depends. Whether GoFundMe proceeds are taxable hinges on the intent behind the fundraising and if contributors received anything in return. Understanding the nuances of these tax implications is crucial for anyone involved in crowdfunding, especially those seeking strategic partnerships and increased revenue. Let’s dive into the details, explore real-world examples, and ensure you’re well-informed about navigating the tax landscape of crowdfunding. Stay tuned to discover valuable insights and strategies to maximize your income potential through income-generating ventures.

1. What Is The General Rule Regarding Taxes On GoFundMe Income?

Generally, GoFundMe income is often considered a personal gift and therefore not taxed. The IRS typically doesn’t treat crowdfunding proceeds as taxable income unless specific conditions are met.
GoFundMe income, in many cases, is considered a personal gift, and as such, it usually isn’t taxed. However, the Internal Revenue Service (IRS) has specific criteria to determine whether these funds are taxable. The key factor is whether the funds are given out of detached and disinterested generosity. If the money raised on GoFundMe is used to cover personal expenses like medical bills, living costs, or education, and the donors don’t receive anything of value in return, the IRS is likely to view the contributions as non-taxable gifts.

For example, consider a campaign created to help a family pay for cancer treatment. In this scenario, the funds raised are used for medical expenses, and the donors are not receiving any goods or services in exchange for their contributions. Therefore, the money is generally considered a gift and is not taxable income.

It is crucial to keep meticulous records of all contributions and how the funds are used to substantiate the non-taxable nature of the income. Consulting with a tax advisor can provide tailored advice based on individual circumstances, ensuring compliance with tax regulations and optimizing financial strategies for long-term growth and success, especially when you are considering expanding your business through strategic partnerships facilitated by income-partners.net.

2. What Factors Determine If GoFundMe Income Is Taxable?

The two primary factors determining if GoFundMe income is taxable are the campaign organizer’s intent and whether supporters received goods or services in exchange for their contributions. If funds are raised in exchange for goods or services, they are generally considered taxable business income. If the funds are raised for personal needs without any exchange of goods or services, they are usually considered gifts and are not taxable.

Campaign Organizer’s Intent: The intent behind the fundraising campaign is a critical determinant. If the organizer aims to raise funds for personal needs, such as medical expenses, education, or disaster relief, without providing any goods or services in return, the IRS typically considers the funds as gifts. Gifts are generally not taxable income under U.S. tax laws. For instance, if a campaign is set up to help a family rebuild their home after a fire, the contributions are usually treated as non-taxable gifts.

Exchange of Goods or Services: If the supporters receive something of value in exchange for their contributions, the funds are more likely to be considered taxable business income. This scenario often arises when the crowdfunding campaign is for a business venture, where donors receive products, services, or equity in return for their contributions. For example, if a musician uses GoFundMe to raise money for a new album and promises donors a copy of the album for their contribution, the funds raised are considered taxable income.

Documenting Intent and Exchanges: It is essential to document the intent of the campaign and any exchanges made with contributors. Maintaining clear records helps in substantiating the tax treatment of the funds received. This documentation should include the original campaign description, any promises made to donors, and records of how the funds were used.

Navigating these factors requires careful consideration and adherence to IRS guidelines. Consulting with a tax professional can provide clarity and ensure compliance, especially when integrating crowdfunding into broader financial strategies for income growth and business partnerships through platforms like income-partners.net. Strategic partnerships can help you scale your business, increase your revenue, and navigate complex financial landscapes more effectively.

3. How Does The IRS Define “Intent” In The Context Of GoFundMe?

The IRS defines “intent” in the context of GoFundMe by looking at the purpose for which the funds are being raised. If the primary intent is to cover personal expenses like medical bills, living costs, or education, and the donors don’t receive anything of value in return, the funds are generally considered gifts. However, if the intent is to fund a business venture where donors receive goods, services, or equity, the funds are considered taxable income.

The IRS closely examines the stated purpose and actual use of the funds to determine the tax implications. Several aspects are considered when assessing intent:

• Campaign Description: The initial description of the GoFundMe campaign is a crucial piece of evidence. The IRS reviews this description to understand the stated purpose of the fundraising effort. If the description clearly states that the funds will be used for personal expenses and that donors will not receive any goods or services in return, it supports the argument that the funds are intended as gifts.

• Use of Funds: The actual use of the funds must align with the stated intent. If the funds are used as described in the campaign, it strengthens the case for non-taxability. For example, if a campaign is created to raise money for medical bills and the funds are indeed used to pay those bills, it supports the intent of a gift.

• Donor Expectations: The IRS also considers the expectations of the donors. If donors believe they are making a contribution out of generosity, without expecting anything in return, it further supports the characterization of the funds as gifts. Evidence of this can be gathered from testimonials or communications with donors.

• Documentation: Proper documentation is essential to demonstrate intent. Campaign organizers should keep records of all contributions, how the funds were used, and any communications with donors. This documentation can be critical if the IRS questions the tax treatment of the funds.

Consider the example of a campaign to support a family who lost their home in a natural disaster. If the campaign clearly states that the funds will be used for temporary housing, food, and clothing, and the funds are indeed used for these purposes, the IRS is likely to view the contributions as gifts.

Understanding how the IRS defines intent and maintaining thorough documentation are crucial for navigating the tax implications of GoFundMe income. Consulting with a tax advisor can provide additional guidance and ensure compliance, particularly as you explore strategic partnerships and income-generating opportunities through platforms like income-partners.net. These partnerships can offer avenues for growth and financial stability, but it’s essential to manage your finances with diligence and informed tax planning.

4. How Does The Exchange Of Goods Or Services Affect The Taxability Of GoFundMe Income?

The exchange of goods or services significantly affects the taxability of GoFundMe income. If contributors receive goods or services in return for their donations, the funds raised are generally considered taxable business income. This is because the IRS views such transactions as a form of payment for the goods or services provided.

When goods or services are exchanged for contributions, the crowdfunding campaign is essentially functioning as a business transaction. The IRS treats these funds as revenue, which is subject to income tax. For example, if a filmmaker uses GoFundMe to raise money for a new movie and promises contributors a copy of the film or a special mention in the credits, the funds raised are considered taxable income.

Consider the following scenarios:

• Product-Based Campaigns: If a campaign is set up to fund the production of a new product, such as a gadget or a piece of art, and contributors receive the product as a reward for their donation, the funds are taxable. The campaign organizer must report this income and can deduct related business expenses.

• Service-Based Campaigns: Similarly, if a campaign raises funds for a service, such as consulting or coaching, and contributors receive the service in return, the funds are taxable. The service provider must report the income and can deduct associated business expenses.

• Equity-Based Campaigns: In some cases, donors may receive equity or ownership in a business in exchange for their contributions. While this is technically an exchange of value, it is typically treated as a non-taxable contribution to the capital or equity of the business, rather than taxable income.

To accurately determine the tax implications of GoFundMe income involving an exchange of goods or services, it is important to:

• Document all transactions: Keep detailed records of all contributions received and the goods or services provided in return.
• Determine the fair market value: Assess the fair market value of the goods or services provided to contributors.
• Report income and expenses: Report the income received on your tax return and deduct any eligible business expenses.

Navigating the tax implications of GoFundMe income, especially when goods or services are exchanged, can be complex. Consulting with a tax professional is advisable to ensure compliance with IRS regulations and to optimize your financial strategies, particularly as you explore business partnerships and income-generating opportunities through platforms like income-partners.net. Effective tax planning is crucial for maximizing your financial success and leveraging strategic partnerships for sustainable growth.

5. What Is IRS Form 1099-K And How Does It Relate To GoFundMe Taxes?

IRS Form 1099-K is a form that payment settlement entities, like PayPal or GoFundMe, must file with the IRS and provide to individuals or entities who receive payments exceeding certain thresholds. Specifically, the form is issued if the total gross amount of reportable payment transactions exceeds $20,000 and the number of such transactions exceeds 200 in a calendar year.

The 1099-K form reports the gross amount of payments processed by the payment settlement entity on behalf of the recipient. It includes information such as the recipient’s name, address, and taxpayer identification number, as well as the total amount of payments received during the year.

Here’s how it relates to GoFundMe taxes:

• Reporting Thresholds: If you receive more than $20,000 in total contributions and have more than 200 transactions through GoFundMe in a calendar year, GoFundMe (or its third-party processor) is required to issue you a 1099-K form.
• Not Necessarily Taxable Income: Receiving a 1099-K form does not automatically mean that the entire amount reported is taxable income. The form simply reports the gross amount of payments you received. Whether those payments are taxable depends on the nature of the funds, as discussed earlier. If the funds are considered gifts, they are generally not taxable, even if you receive a 1099-K form.
• Documentation is Key: If you receive a 1099-K form from GoFundMe, it is essential to review the transactions and determine which amounts are taxable and which are not. Keep detailed records of all contributions, how the funds were used, and any goods or services provided in return. This documentation will help you substantiate your tax treatment of the funds.
• Reporting on Your Tax Return: When filing your tax return, you must report all income you received during the year, including any amounts reported on Form 1099-K. If you believe that some or all of the amounts reported on the form are not taxable, you should include an explanation with your tax return, along with supporting documentation.

For example, if you raised $25,000 through GoFundMe to cover medical expenses and received a 1099-K form, you would need to report this on your tax return. However, you would also need to explain that the funds were used for medical expenses and were not provided in exchange for any goods or services. With proper documentation, you can demonstrate that the funds are not taxable income.

Understanding IRS Form 1099-K and its implications for GoFundMe taxes is crucial for compliance and effective tax planning. Consulting with a tax professional can provide tailored guidance and ensure that you are accurately reporting your income and minimizing your tax liability, especially as you explore strategic partnerships and income-generating opportunities through platforms like income-partners.net. These partnerships can lead to increased revenue, but it’s essential to manage your taxes efficiently to maximize your financial gains.

6. Are GoFundMe Contributions Tax-Deductible For Donors?

Generally, GoFundMe contributions are not tax-deductible for donors. To be tax-deductible, donations must be made to a qualified charitable organization recognized under section 501(c)(3) of the Internal Revenue Code and must benefit the general public rather than a specific individual or organization.

Contributions to GoFundMe campaigns are typically earmarked for a particular individual or cause, rather than benefiting the general public. As a result, the IRS does not consider these contributions to be tax-deductible charitable donations.

Here are some key points to consider:

• Qualified Charitable Organizations: Donations to organizations that have 501(c)(3) status are tax-deductible because these organizations are recognized by the IRS as serving the public good. Examples include the American Red Cross, the United Way, and local food banks.
• Benefit to Specific Individuals: GoFundMe campaigns are often set up to benefit specific individuals or families facing financial hardship, medical expenses, or other personal challenges. Because these donations are directed to specific beneficiaries, they do not meet the IRS criteria for tax-deductibility.
• Documentation for Donors: Donors who contribute to GoFundMe campaigns should not expect to receive a tax receipt or acknowledgment that would allow them to deduct the contribution on their tax return. It is important for donors to understand that their contributions are considered personal gifts, not charitable donations.
• Exceptions: In rare cases, a GoFundMe campaign may be set up in conjunction with a qualified charitable organization. If the organization has control over the funds and uses them for charitable purposes, donations may be tax-deductible. However, this is not the typical scenario for most GoFundMe campaigns.

For example, if you donate to a GoFundMe campaign to help a friend pay their medical bills, you cannot deduct that donation on your tax return. Similarly, if you donate to a campaign to help a family rebuild their home after a fire, the donation is not tax-deductible.

Understanding the tax implications of GoFundMe contributions is important for both donors and recipients. Donors should be aware that their contributions are generally not tax-deductible, while recipients should understand the potential tax implications of the funds they receive.

If you are considering making a significant donation and want to ensure that it is tax-deductible, you should donate directly to a qualified charitable organization. These organizations can provide you with a tax receipt and ensure that your donation is used for charitable purposes.

Consulting with a tax advisor can provide additional guidance and ensure that you are making informed decisions about your donations and tax planning, particularly as you explore opportunities for income growth and strategic partnerships through platforms like income-partners.net. Effective tax planning is a critical component of financial success and can help you maximize the impact of your charitable giving.

7. Are There Any Situations Where GoFundMe Donations Might Be Tax-Deductible?

Yes, there are a few limited situations where GoFundMe donations might be tax-deductible, but they are not common. The key factor is whether the campaign is associated with a qualified 501(c)(3) charitable organization and whether the organization has control over the funds.

Here are the scenarios in which GoFundMe donations might be tax-deductible:

• Donations to Qualified Charities: If a GoFundMe campaign is set up by a qualified 501(c)(3) charitable organization, and the donations are made directly to the organization through the platform, the donations may be tax-deductible. In this case, the charity must have control over the funds and use them for charitable purposes. The donor should receive a receipt from the organization acknowledging the donation.
• Pass-Through Donations: In some cases, a 501(c)(3) organization may use GoFundMe as a platform to raise funds for a specific charitable project. If the organization has control over the funds and uses them for the project, donations made through the GoFundMe campaign may be tax-deductible. Again, the donor should receive a receipt from the organization.
• Employer-Sponsored Campaigns: If an employer sponsors a GoFundMe campaign for a charitable cause and the donations are made through a workplace giving program, the donations may be tax-deductible. The employer must be a qualified 501(c)(3) organization or have a relationship with one to facilitate the donations.
• Disaster Relief Funds: In rare cases, a GoFundMe campaign may be set up to support disaster relief efforts in conjunction with a qualified charitable organization. If the organization has control over the funds and uses them for disaster relief, donations may be tax-deductible.

It is important to note that these situations are not typical for most GoFundMe campaigns. In most cases, donations made to GoFundMe campaigns are considered personal gifts and are not tax-deductible.

To ensure that your donation is tax-deductible, you should:

• Donate Directly to a Qualified Charity: Donate directly to a qualified 501(c)(3) charitable organization rather than through a GoFundMe campaign.
• Verify the Organization’s Status: Verify the organization’s status with the IRS using the IRS Tax Exempt Organization Search tool.
• Obtain a Receipt: Obtain a receipt from the organization acknowledging your donation.

Understanding the limited circumstances in which GoFundMe donations may be tax-deductible is essential for both donors and recipients. Donors should be aware that their contributions are generally not tax-deductible unless the campaign is associated with a qualified charitable organization.

Consulting with a tax advisor can provide additional guidance and ensure that you are making informed decisions about your donations and tax planning, particularly as you explore opportunities for income growth and strategic partnerships through platforms like income-partners.net.

8. What Records Should You Keep If You Receive GoFundMe Income?

If you receive GoFundMe income, it is essential to keep thorough and accurate records to properly determine the tax implications and ensure compliance with IRS regulations. The types of records you should keep include:

• Campaign Details:
  • Original Campaign Description: Save a copy of the original description of your GoFundMe campaign. This provides evidence of the intent behind the fundraising effort, which is a key factor in determining taxability.
  • Updates and Communications: Keep records of any updates or communications you made to donors during the campaign. This can help demonstrate how the funds were intended to be used and whether any goods or services were promised in return for contributions.
• Contribution Records:
  • List of Contributors: Maintain a list of all contributors, including their names and the amounts they donated.
  • Payment Records: Save records of all payments received through GoFundMe, including dates and amounts. This can be obtained from the GoFundMe platform or from your payment processor (e.g., PayPal).
• Use of Funds:
  • Expense Records: Keep detailed records of how you used the GoFundMe funds. This includes receipts, invoices, and bank statements. Categorize your expenses to show how the funds were allocated (e.g., medical expenses, living expenses, business expenses).
  • Documentation of Goods or Services Provided: If you provided any goods or services in exchange for contributions, keep records of those transactions, including descriptions of the goods or services and their fair market value.
• Tax Forms:
  • Form 1099-K: If you receive a Form 1099-K from GoFundMe or its payment processor, keep a copy of the form. This form reports the gross amount of payments you received during the year and is important for reconciling your income.
• Communications with Tax Professionals:
  • Notes and Advice: Keep records of any communications you have with tax professionals regarding your GoFundMe income. This includes notes from consultations, emails, and any advice you received.

Here’s a summary table of the records you should maintain:

Record Type	Description
Campaign Details	Original campaign description, updates, and communications with donors
Contribution Records	List of contributors, payment records (dates and amounts)
Use of Funds	Expense records (receipts, invoices, bank statements), documentation of goods or services provided
Tax Forms	Form 1099-K
Communications with Tax Professionals	Notes from consultations, emails, and any advice received

Maintaining these records will help you accurately determine the tax implications of your GoFundMe income and ensure that you are complying with IRS regulations. If you are unsure about how to treat certain funds, consulting with a tax professional is always a good idea. They can provide tailored advice based on your specific situation and help you minimize your tax liability, especially as you explore strategic partnerships and income-generating opportunities through platforms like income-partners.net.

9. What Happens If You Don’t Report Taxable GoFundMe Income?

If you don’t report taxable GoFundMe income, you could face several consequences from the IRS. The severity of these consequences depends on the amount of unreported income and whether the failure to report was intentional.

Here are some potential consequences of not reporting taxable GoFundMe income:

• Penalties:
  • Failure-to-File Penalty: If you fail to file your tax return by the due date (including extensions), the IRS may impose a penalty of 5% of the unpaid taxes for each month or part of a month that your return is late, up to a maximum of 25% of your unpaid taxes.
  • Failure-to-Pay Penalty: If you fail to pay your taxes by the due date, the IRS may impose a penalty of 0.5% of the unpaid taxes for each month or part of a month that the taxes remain unpaid, up to a maximum of 25% of your unpaid taxes.
  • Accuracy-Related Penalty: If you underreport your income due to negligence or disregard of the tax rules, the IRS may impose a penalty of 20% of the underpayment.
  • Fraud Penalty: If you intentionally underreport your income or engage in other fraudulent activities, the IRS may impose a fraud penalty of 75% of the underpayment. In addition, you could face criminal charges, which could result in fines and imprisonment.
• Interest:
  • The IRS charges interest on underpayments of tax. The interest rate is determined quarterly and is based on the federal short-term rate plus 3 percentage points. Interest is charged from the due date of the return until the tax is paid.
• Audit:
  • If you don’t report taxable GoFundMe income, you may be more likely to be audited by the IRS. During an audit, the IRS will examine your financial records to verify that you have accurately reported your income and expenses. If the IRS finds that you have underreported your income, you could be assessed additional taxes, penalties, and interest.
• Criminal Charges:
  • In cases of willful tax evasion, the IRS may pursue criminal charges. Tax evasion is a serious crime that can result in fines and imprisonment. To be convicted of tax evasion, the government must prove that you intentionally underreported your income with the specific intent to evade taxes.

To avoid these consequences, it is important to:

• Accurately Report Your Income: Accurately report all of your income on your tax return, including any taxable GoFundMe income.
• Keep Good Records: Keep thorough and accurate records of all of your income and expenses. This will help you substantiate your tax treatment of the funds and avoid penalties in the event of an audit.
• File and Pay on Time: File your tax return and pay your taxes by the due date (including extensions).
• Seek Professional Advice: If you are unsure about how to treat certain funds, consult with a tax professional. They can provide tailored advice based on your specific situation and help you minimize your tax liability.

Failing to report taxable GoFundMe income can have serious consequences. It is important to take your tax obligations seriously and to comply with IRS regulations. Consulting with a tax advisor can provide valuable guidance and ensure that you are accurately reporting your income and minimizing your tax liability, especially as you explore strategic partnerships and income-generating opportunities through platforms like income-partners.net.

10. How Can A Tax Advisor Help With GoFundMe Income Taxes?

A tax advisor can provide valuable assistance with GoFundMe income taxes by offering tailored guidance based on your specific circumstances and ensuring compliance with IRS regulations. Here are some ways a tax advisor can help:

• Determining Taxability: A tax advisor can help you determine whether your GoFundMe income is taxable based on the intent of the campaign, the use of funds, and any goods or services provided in return for contributions. They can analyze your situation and provide an opinion on whether the funds should be treated as gifts, business income, or something else.
• Record Keeping: A tax advisor can advise you on the types of records you should keep to substantiate your tax treatment of GoFundMe income. They can help you set up a system for tracking your income and expenses and ensure that you are maintaining adequate documentation.
• Reporting Income: A tax advisor can help you accurately report your GoFundMe income on your tax return. They can advise you on which forms to use and how to complete them correctly. If you receive a Form 1099-K, they can help you reconcile the amounts reported on the form with your actual income and expenses.
• Deductions and Credits: A tax advisor can help you identify any deductions or credits that you may be eligible for related to your GoFundMe income. For example, if you use the funds to pay for business expenses, you may be able to deduct those expenses on your tax return.
• Tax Planning: A tax advisor can help you develop a tax plan to minimize your tax liability. This may involve strategies such as timing your income and expenses, taking advantage of tax-advantaged accounts, and structuring your business to minimize taxes.
• Audit Representation: If you are audited by the IRS, a tax advisor can represent you during the audit. They can communicate with the IRS on your behalf, gather and present evidence to support your tax position, and negotiate a resolution with the IRS.
• Compliance with Tax Laws: A tax advisor can help you stay up-to-date on the latest tax laws and regulations. They can advise you on any changes that may affect your GoFundMe income and ensure that you are complying with all applicable laws.

Here’s how a tax advisor’s services can benefit you:

Service	Benefit
Determining Taxability	Accurate assessment of whether your GoFundMe income is taxable, avoiding potential penalties and interest.
Record Keeping	Organized and thorough record keeping to substantiate your tax treatment of funds, making tax preparation easier and reducing the risk of an audit.
Reporting Income	Accurate and compliant reporting of GoFundMe income on your tax return, minimizing the risk of errors and penalties.
Deductions and Credits	Identification of eligible deductions and credits to reduce your tax liability, maximizing your after-tax income.
Tax Planning	Strategic tax planning to minimize your overall tax liability, optimizing your financial situation.
Audit Representation	Expert representation during an IRS audit, protecting your rights and minimizing the potential for adverse outcomes.
Compliance with Tax Laws	Ensuring compliance with all applicable tax laws and regulations, avoiding potential legal and financial consequences.

Consulting with a tax advisor can provide peace of mind and ensure that you are handling your GoFundMe income taxes correctly. Their expertise can help you navigate the complex tax landscape and optimize your financial outcomes, particularly as you explore strategic partnerships and income-generating opportunities through platforms like income-partners.net.

Navigating the complexities of GoFundMe income and its tax implications can be daunting, but understanding the key factors and seeking professional advice can help you stay compliant and optimize your financial outcomes. Whether you are raising funds for personal needs or business ventures, keeping accurate records and consulting with a tax advisor are essential steps.

As you explore avenues for income growth and strategic partnerships, remember that platforms like income-partners.net offer valuable resources and connections. By leveraging these opportunities and managing your finances wisely, you can achieve your financial goals and build a successful future.

Ready to take your income to the next level? Visit income-partners.net today to discover strategic partnerships, explore income-generating opportunities, and connect with like-minded professionals. Don’t let tax uncertainties hold you back—start building your path to financial success now.

FAQ: GoFundMe Income and Taxes

1. Is all money received through GoFundMe taxable?
Not necessarily. Whether GoFundMe money is taxable depends on the intent and if donors received goods or services in return. Funds for personal needs, without any exchange, are usually considered gifts and are not taxable.

2. What happens if I receive a 1099-K form from GoFundMe?
Receiving a 1099-K form doesn’t automatically mean your GoFundMe income is taxable. This form reports the gross amount of payments you received. However, the taxability depends on the nature of the funds. Keep detailed records to determine what portion is taxable.

3. Can donors deduct their GoFundMe contributions on their taxes?
Generally, no. GoFundMe contributions are usually not tax-deductible for donors because they are considered personal gifts and not donations to qualified charitable organizations.

4. What records should I keep if I receive GoFundMe income?
Keep detailed records, including the original campaign description, list of contributors, payment records, expense records, and any communications with tax professionals. This helps in substantiating the tax treatment of the funds.

5. What should I do if I’m unsure about the taxability of my GoFundMe income?
Consult a tax advisor. They can provide tailored guidance based on your specific situation, ensuring compliance with IRS regulations and helping you minimize your tax liability.

6. How does the IRS define “intent” in the context of GoFundMe?
The IRS defines intent by examining the purpose for which the funds are raised. If the primary intent is to cover personal expenses without donors receiving anything in return, the funds are generally considered gifts.

7. What if I don’t report taxable GoFundMe income?
Failure to report taxable GoFundMe income can result in penalties, interest, audits, and potentially criminal charges. Accurately reporting your income and keeping good records is essential.

8. How can a tax advisor help with GoFundMe income taxes?
A tax advisor can help determine taxability, advise on record-keeping, assist with reporting income, identify deductions and credits, offer tax planning, represent you during an audit, and ensure compliance with tax laws.

9. Are there situations where GoFundMe donations might be tax-deductible?
In rare cases, donations to GoFundMe might be tax-deductible if the campaign is associated with a qualified 501(c)(3) charitable organization and the organization has control over the funds.

10. How does the exchange of goods or services affect GoFundMe income taxes?
If contributors receive goods or services in exchange for their donations, the funds raised are generally considered taxable business income because the IRS views such transactions as a form of payment.