Are Go Fund me proceeds taxable?

mamadaly21

mamadaly21

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Hi there,

Last week I set up a go fund me for a friend of mine and her children. I’m just wondering will they be taxed on this money? If anyone could offer me any advice on what would be the best thing to do with this money, would I correct in advising her to set up bank accounts for each of the children and dividing it among them? I’m really clueless with this sort of thing and I just want to have all the correct information for my friend so that when the time comes to transfer the money from the GoFundMe she will be able to do so without any additional stress or hassle. Many thanks in advance
 
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I doubt it's taxable and I very much doubt that even if it were taxable in a technical sense, that Revenue would pursue it.

Why would you give the money to the children? Give the money to the mother who will need it. Just pay it into her account.

Brendan
 
Thank you Brendan for your quick reply. I was only wondering about dividing it between the children if it were taxable. I’m also conscious that if she’s entitled to any additional support down the line that she might be means tested on the money?
 
I am sorry for your friend's loss, it must be awful and you are so kind to help her. With regards to means, for most things I believe the home, things like cars etc is disregarded, so yes, cash in an account would probably be means, so if there is a need to improve her home or buy one say or something like that then maybe that is a good choice for her? Or indeed setting up a trust or savings for the children from the fund might be an option as the purpose of the funds is to protect the family future so this would seem like a way to do that. Does she have someone close to her who can help her to make decisions in what must be a horrendous time?
 
misemoi said:
cash in an account would probably be means,
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This is an interesting point.

If she is getting a mean-tested social welfare benefit, then the amount she gets would be reduced if she has €90k sitting in her bank account.

But she is probably getting the Widow's Pension which would not be means-tested. So this is probably not a factor.

Even if it is a factor, I would tend to live with it and let her keep control of the €90k. That is more important than a complicated set up.

Brendan
 
Brendan Burgess said:
I doubt it's taxable and I very much doubt that even if it were taxable in a technical sense, that Revenue would pursue it.
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I don't know the context of this query Brendan, and am assuming that it has come up in another thread and relates to a tragic situation.

In that type of scenario, I can only assume that Revenue would on compassionate grounds decline to pursue a needy family for tax on a sum raised from a GoFundMe campaign, but I have seen some GoFundMes in the past that I have no doubt are taxable in the hands of the recipients.
 
Every one can gift €3,000 to your friend - and she can receive €3,000 from each with no tax consequences.

As regards Social Protection - can you tell us anything if what your friend receives is means tested etc?

Hope that helps.
 
WizardDr said:
Every one can gift €3,000 to your friend - and she can receive €3,000 from each with no tax consequences.

As regards Social Protection - can you tell us anything if what your friend receives is means tested etc?

Hope that helps.
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That’s the point I was going to make. Unless people are gifting more than €3,000 per donor, there isn’t a tax issue.
 

"Donations made to personal GoFundMe fundraisers are generally considered to be "personal gifts" which, for the most part, are not taxed as income in the United States. Additionally, these donations are not tax deductible for donors.

However, there may be particular case-specific instances where the income is in fact taxable for organizers. For example, if the donations are considered income to the recipient.

The best way to ensure you're in compliance with the tax laws is to maintain adequate records of donations received and consult with a tax professional. As part of GoFundMe’s Terms and Conditions, you have represented that you are not providing any goods or services in exchange for the donation of funds. As a result, GoFundMe will not provide you with any tax documentation for money raised on your fundraiser, nor will GoFundMe report the funds you collected as earned income.

For information about tax deductibility for charity fundraisers, please click here. "
 
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thanks everyone for some clarity. I don’t think she is eligible for widows pension as they were not married. She doesn’t receive any social welfare at present but I was just wondering in case she needed to apply for anything down the line seeing as going back to work probably isn’t an option for her until at least all of the children are school-going age.
 
So for example, if she had €100k in cash

€20k nil
€10k@ €1 = €10
€10k @€2 = €20
€60k @4 = €240
So her weekly SW would be reduced by €270
 
Brendan Burgess said:
Do you have to give it to her all in one go?
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Even if the GoFundMe proceeds are not yet in her bank account they are de facto her financial means and reckonable for social welfare purposes.


mamadaly21 said:
I don’t think she is eligible for widows pension as they were not married.
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This is likely to change very soon on foot of a Supreme Court judgement.
 
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