Money, Data & Research
A gift to a person through crowdfunding is not deductible
The cause may be urgent and the need real, but the tax treatment of a crowdfunded gift depends on who receives the money.
By The Editors · The Game of Giving
The BriefMoney, Data & Research
Personal crowdfunding campaigns, raising money for someone's medical bills, funeral costs, or recovery after a fire, are a common way people help each other. They are not charitable contributions under federal tax law.
A deduction is available only for gifts to qualified organizations, such as 501(c)(3) public charities. A gift that goes to an individual, however deserving, does not qualify, even if the platform calls the page a fundraiser.
Some crowdfunding pages are run by a charity or through a platform that routes gifts to one. In that case the gift may be deductible, and the charity should provide an acknowledgment. The page should name the organization receiving the funds. If it does not, assume the money goes to a person.
None of this is a reason not to give. It is a reason to know what you are giving to. Before donating, check who organized the page, who receives the funds, and whether the organizer is connected to the person being helped.
General information for donors and nonprofit leaders, not legal or tax advice. How we report is set out in our editorial guide.
