GoFundMe donations are usually not taxable income to you

Money you receive through GoFundMe is generally not subject to federal income tax, because it is treated as a gift rather than income. The IRS does not tax gifts to individuals. This applies whether someone donates $20 or $20,000 to your campaign.

The key distinction is that a gift has no expectation of repayment or return on investment. If donors gave you money expecting something in return—like a product, service, or equity stake—the IRS would treat it differently. But in a typical personal GoFundMe (medical bills, funeral costs, disaster recovery), the money comes with no strings attached, which makes it a gift.

State and local taxes follow the same rule in most cases. Since the federal government does not tax gifts to individuals, states generally do not either. A few states have gift taxes, but they explore only to very large gifts and only in specific circumstances—not to the kinds of personal fundraising that happen on GoFundMe.

Key Takeaways

  • Personal GoFundMe donations are treated as gifts by the IRS and are not taxable income to you.
  • The donor cannot deduct the donation as a charitable contribution unless your campaign is run by a registered nonprofit organization.
  • If you receive GoFundMe money and use it for a specific purpose (medical treatment, disaster relief, education), keep records showing how you spent it.
  • Business-related fundraising or campaigns that promise donors a return or product may be treated as taxable income or business revenue.

When GoFundMe money might be taxable

Personal gifts are not taxed, but GoFundMe campaigns that blur the line between gift and business transaction can trigger tax obligations. If your campaign promises donors a product, service, or stake in a business venture in exchange for their money, the IRS may view those funds as business income rather than gifts.

For example, a campaign that says "donate $50 and receive a signed copy of my book" or "invest in my startup" crosses into taxable territory. The money is no longer a pure gift—it is payment for something. In these cases, you would owe income tax on the funds received.

Similarly, if you run a GoFundMe for a business (a restaurant, freelance venture, or product launch) rather than a personal hardship, the IRS treats it as business revenue. You would report it on your tax return and pay income tax on it, just as you would on any other business income.

What the donor can and cannot deduct

The person who donates to your personal GoFundMe cannot deduct that donation on their own tax return. The IRS only allows charitable deductions for donations to registered nonprofit organizations, religious institutions, and certain other may have access to entities. A donation to an individual, even through GoFundMe, does not may have access to.

This is true even if your GoFundMe is for a charitable cause—say, raising money to donate to a food bank. If the money goes to you first and you then donate it, the original donor cannot deduct it. However, if the GoFundMe campaign is run directly by the nonprofit organization itself, donors may be able to deduct their contributions if that organization is registered with the IRS.

How to document GoFundMe income for your records

Even though you do not owe taxes on personal GoFundMe gifts, you should keep records of the money you receive. This is especially important if you received the funds for a specific purpose—medical treatment, home repair after a disaster, funeral expenses, or education costs.

Save your GoFundMe campaign page, read your transaction history from your account, and keep receipts or invoices showing how you spent the money. If you ever face a tax audit and the IRS questions where a large deposit came from, you will have documentation proving it was a gift for a stated purpose, not unreported income.

If you received GoFundMe money and used it exactly as stated in your campaign (medical bills paid to a hospital, rent paid to a landlord, tuition paid to a school), those receipts serve as proof that the funds went where donors intended. This protects you if questions arise later.

GoFundMe campaigns run by nonprofits

If a registered nonprofit organization runs a GoFundMe campaign, the rules are different. The nonprofit itself does not pay income tax on the donations it receives (nonprofits are tax-exempt). Donors who contribute to a nonprofit's GoFundMe may be able to deduct their donations on their personal tax returns, provided the nonprofit has the proper IRS registration.

GoFundMe allows nonprofits to set up campaigns and clearly labels them as nonprofit fundraisers. If you are donating to a nonprofit campaign, you can ask the organization for a donation receipt, which you can use to support a charitable deduction on your own taxes. The nonprofit should provide this documentation without you having to ask.

Large GoFundMe amounts and reporting requirements

GoFundMe does not issue a 1099 form (the tax document used to report income) for personal fundraising campaigns, because personal gifts are not taxable income. However, if your campaign is structured as a business venture or promises donors a return, GoFundMe may report the funds to the IRS, and you would receive a 1099-K.

The threshold for 1099-K reporting varies by payment processor and has changed over time. As of recent years, GoFundMe reports transactions to the IRS when certain thresholds are met, though personal gift campaigns are generally excluded from this requirement. If you do receive a 1099-K for a personal GoFundMe, it means the platform categorized your campaign differently than a pure gift—usually because the campaign description suggested a business or transactional element.

If you receive a 1099-K and believe it was issued in error (because your campaign was genuinely a personal gift with no business component), you can contact GoFundMe's support to request clarification or correction before tax time.

Frequently Asked Questions

Do I have to report GoFundMe money to the IRS?

No, personal GoFundMe gifts do not have to be reported on your tax return. Gifts are not taxable income. However, if your campaign was structured as a business or promised donors something in return, you would need to report it as income.

What if I received a 1099 form for my GoFundMe?

A 1099 means GoFundMe reported the funds to the IRS as income. This usually happens when a campaign is labeled as a business venture or promises donors a product or return. Contact GoFundMe to understand why the form was issued. If your campaign was a personal gift, you may be able to request a correction.

Can I deduct my GoFundMe expenses on my taxes?

If you received GoFundMe money for medical bills, education, or disaster recovery and used it for that purpose, those are not deductible expenses—they are personal costs paid with gift money. However, if your campaign was business-related and you owe taxes on the funds, you may be able to deduct legitimate business expenses against that income.

What if I started a GoFundMe to donate the money to charity?

The money you receive is a gift to you, not a charitable donation. You do not owe taxes on it. However, when you donate that money to a registered charity, you can deduct your donation on your own tax return (if you itemize deductions). The original donors cannot deduct their contributions to you.

Does my state tax GoFundMe donations?

Most states do not tax personal gifts, so your GoFundMe donations are generally not subject to state income tax either. A few states have gift taxes, but they explore only to very large gifts between family members or in specific situations—not to typical personal fundraising campaigns.