General Discussion

66 dmhlt

(1,941 posts)

12. GoFundMe takes two cuts, but PROBABLY no taxes ...

Reply to Playinghardball (Original post)

Sun Apr 5, 2015, 04:37 PM

Apr 2015

From the GoFundMe site, they take both a 5% cut for themselves along w/ a 3% "processing fee" - so 8% off the top.

While it's free to create and share your online fundraising campaign, GoFundMe will deduct a 5% fee from each donation that you receive. Since our fee is deducted automatically, you'll never need to worry about being billed or owing us any money. A small processing fee of about 3% will also be deducted from each donation. Please see Pricing & Fees for more info.

But they say there'll PROBABLY be no taxes, but check w/ a financial tax advisor.

Unfortunately, we're unable to provide specific tax advice since everyone's situation is different. While this is no means a guarantee, most donations on GoFundMe are simply considered to be 'personal gifts' which are not taxed as income in the US.

http://www.gofundme.com/questions/

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Memories Pizza made +$800k? [View all] Playinghardball Apr 2015 OP

Nope, gifts are not taxable to the recipient. Nye Bevan Apr 2015 #1

Message auto-removed Name removed Apr 2015 #2

If somebody gave them money, they got it as a gift. LisaL Apr 2015 #5

In many cases 2naSalit Apr 2015 #34

Hopefully everyone knows Yupster Apr 2015 #36

There is no place 2naSalit Apr 2015 #37

The point is they do not have to pay taxes. former9thward Apr 2015 #38

Thank you Yupster Apr 2015 #41

The IRS will likely see it as income. Gofundme sends a 1099-k if someone has MillennialDem Apr 2015 #42

I have no doubt the IRS will be aggressive on this. former9thward Apr 2015 #46

They (IRS) will say it is for keeping their business open so it is income, not a gift. The reason MillennialDem Apr 2015 #47

By law income is defined as what you get by working. former9thward Apr 2015 #48

Saying controversial things is working. Otherwise you couldn't tax people who give speeches. MillennialDem Apr 2015 #49

Now you are way off. former9thward Apr 2015 #50

The IRS will view it as not a charitable act, but the gift givers having a vested interest in MillennialDem Apr 2015 #53

Cool dude. former9thward Apr 2015 #62

Not a dude and I don't work for the IRS. MillennialDem Apr 2015 #63

Given your comments I'm sure they would love you. former9thward Apr 2015 #64

a person need not "work for the IRS" or be on their side treestar Apr 2015 #71

You're reading an awful lot into the intentions of anonymous gift-givers on GoFundMe. Nye Bevan Apr 2015 #73

Really? I think they will back off because of political pressure itsrobert Apr 2015 #54

Then every go fund raiser would be taxable johnnysad Apr 2015 #11

No. The gift exemption is so that you aren't taxing a family at Christmas or someone who had MillennialDem Apr 2015 #43

You're such a downer. egduj Apr 2015 #3

Message auto-removed Name removed Apr 2015 #6

I'm looking to see what the official word from the IRS is. Initech Apr 2015 #14

It's taxable after the first $14,000. onehandle Apr 2015 #28

From the same page you linked to metalbot Apr 2015 #35

Its tax free. former9thward Apr 2015 #39

I doubt it MillennialDem Apr 2015 #44

well, hope you don't get audited snooper2 Apr 2015 #70

That's a whole lot of money johnnysad Apr 2015 #4

Not likely. NT NYC_SKP Apr 2015 #10

never know johnnysad Apr 2015 #15

They just don't strike me as thoughtful people who would care. NYC_SKP Apr 2015 #18

They "closed" the day after they went live with their script. yardwork Apr 2015 #66

Ok, how much can I take in clydefrand Apr 2015 #7

They can just change the name to Church of the Memories Pizza and keep it all. Contrary1 Apr 2015 #8

No taxes I assume, I think you can give up to $15,000 to someone tax free. So unless.... Logical Apr 2015 #9

Yep SickOfTheOnePct Apr 2015 #16

GoFundMe takes two cuts, but PROBABLY no taxes ... 66 dmhlt Apr 2015 #12

I didn't know anything about this fundraiser. noella17 Apr 2015 #13

Not really. A reporter went to a bunch of restaurants and yeoman6987 Apr 2015 #17

So the reporter was just trying to bait them? noella17 Apr 2015 #19

Well it did help change the law after the boycotts started yeoman6987 Apr 2015 #20

There is a law noella17 Apr 2015 #21

Well I don't know but I am at the movies yeoman6987 Apr 2015 #23

You, too. noella17 Apr 2015 #24

And I think you are wrong. bravenak Apr 2015 #25

We are discussing the $800K raised noella17 Apr 2015 #27

MLK did not do it alone and he was the epitome of confrontation. bravenak Apr 2015 #30

You run the risk of being bigoted against bigots though noella17 Apr 2015 #32

Lol! Intolarant against intolerance. bravenak Apr 2015 #33

What bothers me the most about this issue is the turn arounds on it by leading Democrats johnnysad Apr 2015 #26

If you really are a supporter of something noella17 Apr 2015 #29

She always took the easy way out saying let the states decide johnnysad Apr 2015 #31

Did a reporter go to a bunch of businesses? yardwork Apr 2015 #68

Nonsense. They put themselves out there. yardwork Apr 2015 #67

How much of that $400,000 goes to -- Nuclear Unicorn Apr 2015 #22

Most likley zero SickOfTheOnePct Apr 2015 #40

I doubt that MillennialDem Apr 2015 #45

A 1099k is *not* telling anyone to "report taxable income". Nye Bevan Apr 2015 #59

Why would they issue a 1099-k if the amount is over $20,000? I'm aware they don't report the income MillennialDem Apr 2015 #60

The IRS always likes to know about large sums of money changing hands, Nye Bevan Apr 2015 #61

Because $20,000 is the legal reporting amount trigger... PoliticAverse Apr 2015 #65

I looked up the tax treatment of fundraising activities on the IRS website jmowreader Apr 2015 #51

Giving to IRS authorized nonprofits allows you to deduct the contribution from your taxable income. PoliticAverse Apr 2015 #52

The problem here is, this isn't a "random person" but a business jmowreader Apr 2015 #55

Well you highlight the problem of what is and isn't a gift. If the giver gets anything in return PoliticAverse Apr 2015 #56

I wonder about that last sentence jmowreader Apr 2015 #57

Yes, I'm curious how this ends up in the end tax-wise. n/t PoliticAverse Apr 2015 #58

Did they set that page up or did some teabagging supporter do it? Lee-Lee Apr 2015 #69

Who Knew itcfish Apr 2015 #72