GoFundMe donations are not tax deductible for the person who gives money, and the person who receives it usually owes no tax either

When you donate to a GoFundMe campaign, you cannot deduct that donation on your federal tax return. The IRS treats GoFundMe as a personal fundraising platform, not a registered charity. Even if the campaign is for a sympathetic cause — medical bills, disaster recovery, funeral expenses — the donation does not may have access to for the charitable deduction that donations to nonprofits do.

The person receiving the money also typically does not owe income tax on it. The IRS generally does not tax money given as a gift, and most GoFundMe campaigns fall into that category. However, there are exceptions, and the tax treatment depends on why the money was raised and how much was collected.

Key Takeaways

  • Donations to GoFundMe campaigns are not deductible on your tax return because GoFundMe is not a registered charity with the IRS.
  • Money received through GoFundMe is usually not taxable income to the recipient, because it is treated as a gift rather than payment for goods or services.
  • If a GoFundMe campaign is run by a registered nonprofit organization, donations to that campaign may be deductible, but only if the nonprofit has 501(c)(3) status.
  • GoFundMe campaigns that raise money for a business, product, or service may create tax obligations for both the fundraiser and the donor.
  • The IRS does not require GoFundMe to report donations under $20,000 in a calendar year, but larger campaigns may trigger reporting requirements.

When GoFundMe money is not taxable to the recipient

The IRS has a gift tax exclusion that allows people to receive money as a gift without owing tax on it. In 2024, you can receive up to $18,000 per person per year as a gift without any tax consequence. If someone gives you more than that in a single year, the giver may owe gift tax, not you — and even then, only if they exceed their lifetime exemption, which is much higher.

Most GoFundMe campaigns fall into this gift category. If friends and family are raising money to help you pay medical bills, cover moving costs, or recover from a disaster, the IRS sees that as a gift. You receive the money tax-free, and the donors cannot deduct it.

GoFundMe itself does not report these transactions to the IRS unless the campaign raises $20,000 or more in a calendar year and the fundraiser has a bank account linked to their campaign. Even then, GoFundMe issues a Form 1099-K to the IRS, which reports the gross amount raised. This does not automatically mean you owe tax — it means the IRS has a record and may ask you to explain the money if they audit you.

When GoFundMe money becomes taxable income

The IRS taxes money differently depending on what it was raised for. If the campaign is fundraising for a business venture, a product launch, or payment for services you provided, that money is taxable income, not a gift. For example, if you run a GoFundMe to fund a startup business or to pre-sell a product you plan to make, the money you raise is business income and must be reported on your tax return.

Similarly, if you use GoFundMe to raise money for work you performed — such as a musician raising funds through a campaign that promises concert tickets or merchandise in return — that is payment for services and is taxable. The key distinction is whether donors are giving money freely as a gift or paying for something in return.

If your campaign raises $20,000 or more and you receive a Form 1099-K, you should report the income on your tax return even if you believe it is a gift. If the IRS later questions it, you can provide documentation showing it was a gift, but failing to report it first creates problems. Consult a tax professional if you are unsure whether your campaign income is taxable.

Donations to nonprofit-run GoFundMe campaigns

If a registered nonprofit organization with 501(c)(3) status runs a GoFundMe campaign, donations to that campaign are usually deductible. The nonprofit must be the one who created and controls the campaign, and you should verify its status by checking the IRS Tax Exempt Organization Search tool before donating.

Even when a nonprofit runs the campaign, GoFundMe itself is not a registered charity. You are donating through GoFundMe's platform to a nonprofit that happens to use it. The deduction comes from the nonprofit's status, not from the platform. If you donate and want to claim the deduction, ask the nonprofit for a written receipt showing the donation amount and the nonprofit's tax ID number.

Some GoFundMe campaigns are created by individuals on behalf of nonprofits — for example, a person raising money for a local food bank. In these cases, the campaign is not run by the nonprofit itself, so donations are not deductible. Only donations made directly to the nonprofit or through a campaign the nonprofit officially controls may have access to for the deduction.

How to verify if a GoFundMe campaign is run by a registered charity

GoFundMe allows nonprofits to create verified accounts, and the platform displays a badge on campaigns run by registered organizations. Look for a checkmark or "Verified Nonprofit" label on the campaign page. However, the badge alone is not enough — you should independently verify the nonprofit's status.

Use the IRS Tax Exempt Organization Search at irs.gov/charities-non-profits. Enter the nonprofit's name and check that it has 501(c)(3) status. This search is free and takes less than a minute. If the organization does not appear in the search, it is not registered with the IRS as a tax-exempt charity, and donations to its GoFundMe campaign are not deductible.

Some organizations have similar names or operate under a different legal name than the one on their GoFundMe page. If you cannot find an exact match, contact the nonprofit directly and ask for its legal name and tax ID number. This also gives you a chance to ask whether the GoFundMe campaign is officially authorized by the organization.

Reporting GoFundMe income on your tax return

If you received $20,000 or more through a GoFundMe campaign in a calendar year and your bank account is linked to the campaign, you will receive a Form 1099-K from GoFundMe. This form reports the total amount raised to both you and the IRS. You must report this on your tax return, even if you believe the money is a gift.

Report the income on Schedule 1 (Form 1040) under "Other Income" if it is a gift, or on Schedule C (Form 1040) if it is business income. If you received a 1099-K but believe the money is a gift, you can file your return reporting it as a gift and include a statement explaining why. Keep documentation — such as messages from donors, proof of the hardship, or receipts showing how you spent the money — in case the IRS asks questions.

If you raised less than $20,000, you will not receive a 1099-K, but you may still owe tax depending on the source of the money. You are responsible for reporting all income, whether or not you receive a form. If you are unsure whether your GoFundMe income is taxable, consult a tax professional or contact the IRS directly.

The difference between GoFundMe and registered charity platforms

Platforms like Network for Good, Donorbox, and GiveWP allow nonprofits to collect donations directly and issue tax receipts. When you donate through these platforms to a registered nonprofit, the donation is deductible. GoFundMe does not function this way — it is a personal fundraising platform where most campaigns are not run by charities.

GoFundMe does have a nonprofit section where registered organizations can create campaigns, but the platform itself does not verify deductibility or issue tax receipts. You are responsible for verifying the nonprofit's status and requesting a receipt. If you want to donate to a nonprofit and receive a tax deduction, you are usually better served donating directly to the nonprofit's website or through a platform designed for nonprofit giving.

Frequently Asked Questions

Can I deduct a GoFundMe donation if I donated to help a friend with medical bills?

No. Personal donations to individuals are never tax deductible, regardless of the reason. Only donations to registered nonprofits with 501(c)(3) status are deductible. If your friend is raising money through a nonprofit's GoFundMe campaign, you may be able to deduct it, but you must verify the nonprofit's status first.

Do I owe taxes on money I received from a GoFundMe campaign?

Usually not, if the money was given as a gift. However, if you received $20,000 or more and your bank account is linked to the campaign, GoFundMe will report it to the IRS on a Form 1099-K. You should report this on your tax return and explain that it is a gift. If the money was raised for a business or service, it is taxable income.

What if my GoFundMe campaign raised $25,000 but I think it is a gift?

You will receive a Form 1099-K. Report the $25,000 on your tax return on Schedule 1 under "Other Income," and include a statement explaining that it is a gift. Keep documentation showing the money came from friends and family as a gift, not as payment. If the IRS questions it, you can provide this evidence.

Is a GoFundMe donation deductible if the nonprofit created the campaign?

Yes, if the nonprofit is registered with the IRS as a 501(c)(3) organization and officially created and controls the campaign. Verify the nonprofit's status using the IRS Tax Exempt Organization Search before donating. Ask the nonprofit for a written receipt showing your donation amount and their tax ID number.

Do I need to report a GoFundMe donation I received if it was under $20,000?

You will not receive a Form 1099-K if the total is under $20,000, but you are still responsible for reporting any taxable income. If the money is a gift, you do not owe tax and do not need to report it. If it is payment for services or business income, you must report it even without a 1099-K.