Is GoFundMe Donations Tax Deductible for Your Business?

No, gofundme donations is generally not tax deductible as a business expense. The IRS considers this a personal expense, even if it has some connection to your work activities. However, there may be limited exceptions in specific circumstances.

Key Rules for Deducting GoFundMe Donations

Donations to individuals through GoFundMe are NOT tax-deductible. Only donations to qualified 501(c)(3) organizations through verified charity campaigns MAY be deductible as charitable contributions on Schedule A (not as a business expense).

Requirements to Claim This Deduction

• Donations to individuals: NOT deductible
• Verified charity campaigns: may be deductible on Schedule A
• Not a business expense either way

How to Document GoFundMe Donations for Tax Purposes

Proper documentation is critical for any business deduction. For gofundme donations, you should:

• Keep all receipts and invoices showing the amount paid
• Record the date of the expense and the business purpose
• If mixed-use, maintain a log showing business vs. personal usage
• Store records for at least 3 years (7 years for major purchases)

Source: IRC § 170. This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.