Is GoFundMe Tax Deductible? Maybe, If You Do It Right.

Eric GreenspanFunding and Fundraising, TaxLeave a Comment

In general, it appears it is not. But that’s not the purpose of this post. What I really want to share with you is that while the tax laws may not support today’s methods of crowdsourced funding, they do in fact offer a solution. You can find a more likely alternative than a personal GoFundMe account. It’s called a “Certified Charity” and many are unaware that this feature exists.

In short, you can setup a GoFundMe account that is directly connected to a legitimate 501c3 non-profit organization. You do this when you create a new fundraiser. You simply choose non-profit or charity from the “Who are you raising money for” dropdown.

Next, you can search for the charity from a public database:

And that’s it. Now, after the funds start to flow, the monies are distributed to your chosen charity. You cannot touch the money, but you can send refunds. The key to make this work however is you have to get the charity organization to “claim” their money. They do this by submitting a request and proving their connection to the 501c3. It’s really simple to do, but many charities are not familiar with these new tools and you may run into some problems getting them to act.

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