Last week on Monday my wife and I launched a fundraiser for my medical expenses. I explained at the time that they're expected to total well over $100,000, possibly twice that. We've been saving as best we can, and have taken out a second mortgage on our home, but we were still facing a big shortfall. We set a fundraising target of $50,000.
To our surprise and great relief, you've responded very generously indeed. As I write these words, the fundraiser stands at $49,236. I expect we'll reach our target today or tomorrow, if this keeps up. After the IRS takes its share and other expenses are met, we should get about $35,000 out of this campaign. This is a huge relief to us, and gives us greater confidence that we can cope with the bills to come.
It's been suggested to us that we should raise the target to a higher figure, but that seems a bit cheesy somehow. Yes, the total bills may be quite a bit higher, but we don't know that for sure yet (it'll take months to have any certainty), and we don't want to appear greedy. We're more than grateful for what we've already received. We'll probably leave the fundraiser open until the end of September to give late responders a chance to join in, and then close it down at whatever the level is then. Meanwhile, if you would please continue to mention the fundraiser now and again to your friends and contacts on social media, we'll appreciate that very much.
We thank God for all of you, and for your great generosity.
Peter
11 comments:
Fanstastic news. (only to be dampened by your mention of the IRS)
I'm glad to hear you are so close to achieving the needed amount. A real shame that Uncle Sam has to share in your need. These donations are gifts, not income. No services or products exchanged. Why should donations like this be taxed ? Maybe I'm being obtuse here.
Great news, Peter, and well deserved for all the help you have given others over the years.
No, you are correct:
Crowdfunding platforms (like GiveSendGo, GoFundMe, Kickstarter, etc.) don’t decide whether it’s a gift or income — the IRS does. You have to look at the intent of the donors and whether you’re giving them anything in return. No strings attached → gift (not taxable to you). HTH, -Joely
To the best of my knowledge gifts received via Give Send Go are *not* taxable: https://help.givesendgo.com/portal/en/kb/articles/are-donations-on-givesendgo-tax-deductible#Do_Campaign_Recipients_Pay_Taxes_on_Funds_Raised
But of course one should check with his or her accountant.
Ned
Peter - the receipts may not be taxable. The IRS has an article on the details. From my reading, I don't think your receipts are taxable, but I'll let you and your accountant deal with it. And yes, I am a CPA in a tax practice, but I am not specifically Your CPA. Anyway, here is a link to their article: "https://www.irs.gov/newsroom/money-received-through-crowdfunding-may-be-taxable-taxpayers-should-understand-their-obligations-and-the-benefits-of-good-recordkeeping".
Sam
Echoing Anonymous above, please initiate a search similar to “IRS question are fundraisers income”.
It appears that, so long as the funds are for personal use, they are non-taxable, since they are considered “gifts.”
You may/will get a Form 1099 from the fundraising platform, but that does not necessarily indicate tax-liability.
Peter, just checked in at 9:00 p.m. Eastern, and you have cleared the goal! Three cheers and a tiger for you and all who donated!
Huzzah! Huzzah! Huzzah! (And Confusion to the IRS!)
It’s not income, it’s a gift for life saving purposes, therefore not taxable. Time to abolish the thieving IRS and the nebula it created to steal from We The People to fund our own demise at their hand.
Wait, the gifts are taxable ? Are you kidding me ?
It depends on the nature of the gift. I've been following up on the subject, and it seems that if the gift is in exchange for any benefit, it's taxable. (For example, you donate and get in exchange a book voucher or even a simple bookmark - it's taxable. No exchange, no tax.)
That sounds simple enough, but there's a lot of confusion in the tax code. If someone donates towards medical expenses, in theory the donation is not taxable; but if the donation is towards legal expenses (e.g. paying for one's defense in a lawsuit), it is. I'm still trying to sort out the conundrums and complications involved.
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