Are Go Fund Me contributions deductable?
When my clients and I are going over their qualified charitable contributions, they often tell me they’ve made many contributions via “Go Fund Me”.
GoFundMe is a website that allows people to list a ‘needed’ cause and request contributions from others throughout the world. Common requests include illness and accident victims, but also other ‘needs.’ In addition to the 5% that GoFundMe deducts from each transaction, WePay collects 2.9% and $.30 from each GoFundMe transaction.
Donations to these funds are NOT deductible unless they are made to a qualified charitable organization. The IRS sets this list and it’s available for the public eye.
If the recipient of the funds receives more than $20,000 they will receive a 1099-K from the site. That amount is reported on Line 21 of the federal 1040 form then deducted the same amount as non-taxable gifts received and attach an explanation that it was personal gifts from individuals funded through the GoFundMe website.
