Are GoFundMe Donations Deductible?

The IRS allows an income tax deduction for charitable contributions to qualified organizations. You must itemize to take advantage of the deduction, but if you do, any contributions to qualified charities, churches and nonprofits provide a tax benefit when filing your return.

But what about GoFundMe donations? Over the past few years, the number of GoFundMe campaigns has dramatically increased and it can be difficult to discern which campaigns provide a tax benefit.

Personal Campaigns

If you donate to someone who is raising money for a personal cause, your donation is not tax deductible. While altruistic, any contributions made to support an individual’s medical bills, funeral costs, or continuing education are not deductible for tax purposes. These contributions are considered a personal gift.

If you gift someone $17,000 or less (in 2023), there are no tax considerations for either party. However, if you gift someone more than $17,000, you will be required to file a gift tax return, as this amount exceeds the yearly gift tax exclusion.

This applies whether the campaign organizer actually uses the funds for the intended purpose, or not. There was some controversy this summer when a poker player misled GoFundMe donors. Thankfully, GoFundMe refunded all donors, but in certain circumstances, it may be unclear if the funds are used as advertised. Unfortunately, even if used for other purposes, these funds are not deductible.

Organizational Campaigns

When donating directly to an organization or charity, GoFundMe will make it clear the donation is eligible for a tax deduction. This can be done by donating to a “GoFundMe Cause” or directly to the qualified organization.

If you are unsure of the deductibility of a gift or donation, it is best to check with your tax professional so there are no surprises at the end of the year. You will also want to ensure you are filing any necessary forms if your donation is deemed a gift and over the applicable threshold.