Attach a copy of the 1099 and a brief written statement explaining why this does not represent taxable income to you. 9 percent, along with 30 cents per donation. Each Nam & Ko mask costs $11. org, the company's registered 501 (c) (3) public charity. How does GoFundMe Get Paid? Does GoFundMe send a 1099? How is GoFundMe taxed? Do I have to tip GoFundMe? How long does it take to get money from GoFundMe?. If you aren't a PayPal customer and have. Box 1 on the Form 1099-K will show the gross amount of the distributions made to a person during the calendar year, but issuance of a Form 1099-K doesn't automatically mean the amount reported on the form is taxable to the person receiving the form. About Form 1099-MISC, Miscellaneous Information. Yes, you will be taxed on your income taxes. The IRS does not consider fundraising proceeds a taxable source of income. You’ll receive a 1099-K for your taxes if you: Earned at least $20,000 through the platform. Donations to 501 (c))3) nonprofit organizations are tax-deductible. A $600 reporting threshold is required for certain business-related interest earned. buzzybody21 • 5 min. The IRS goes on to suggest that if your fundraiser meets certain financial thresholds, that you can file Form 1099-K. Crypto taxes. $20. If you’ve donated, you’ll need to know the deduction rules. Payments to attorneys are always reported on a 1099-NEC regardless of business structure. Otherwise, they will send a statement showing all your donations and their values. Form 1099-A is typically used to report the transfer of foreclosed or abandoned property. But even if you win less and don’t get a 1099, you still need to report that income on your taxes. gov. Receipt of a Form 1099-K for Distributions of Money Raised Through Crowdfunding. Again, this exemption does not apply to LLCs. 9% + 25p is automatically deducted from each donation for personal fundraisers. Pick a day for a potluck dinner—it can be on a specific day of the week, like Shabbat, or a holiday, like Easter Sunday. 30. “We have 1099s for lots of things. GoFundMe and Kickstarter do get a cut of donations. Donate Share. 2. So, for instance, if someone donates $100 to your company, the transaction fee would be $2. g. Does that quid pro quo make her crowdfunding receipts taxable? Arguably, it does. Crowdfunding harnesses the power of social networks and the internet to give people the means to raise funds, help others overcome hardship, and meet aspirational goals. If you gather more than $600 through a crowdfunding campaign on a platform like GoFundMe, you will likely receive a Form 1099-K reporting these payments to you and the IRS. That said, if you use a third-party payment processing website such as GoFundMe to collect donations and distribute them to you, that organization may be required to report your receipts to the IRS and to you on Form 1099-K. If you have GoFundMe receipts, you should probably expect IRS scrutiny. See the Specific Instructions for Form 1099-A, earlier, and Box 4. If you and your tax advisor decide your 1099-K income does not need to be reported on. 9% + $0. Form 1099-MISC is different from Form W-2, which reports salary or hourly wages. 30 per donation. In fact, over $9 billion has been raised by individuals on GoFundMe. S. I'd attached an explanation letter with the return, but yeah gifts are tax exempt. The form reports the interest income you received, any federal income taxes. 99Pledges – Best GoFundMe Alternative for Walk-a-Thons. The GoFundMe transaction fees tend to vary by country. If you’re an active cryptocurrency investor, you may have. 1 What should I know about GoFundMe3 Do I have to pay taxes on GoFundMe?4 How often does GoFundMe pay out?4. 31. A 1099-K is not a determination that you earned income. 3. This form needs to accurately reflect your personal financial information, and therefore, your SSN is necessary. Form 1099-B is a form issued by a broker or barter exchange that summarizes the proceeds of all stock transactions. if the recipient is a non-profit, they must send you a reciept for the gift and that doc. 9% + 20p per donation. A Form 1099 is the miscellaneous income tax form, used to prepare and file income information that is separate from wages, salaries, or tips. Money collected through crowdfunding campaigns capacity be considered nontaxable if it meets the IRS' definition of a talent. A 1099-K form reports credit card payments you’ve received through a third party to the United States Internal Revenue Service. If you have GoFundMe receipts, you should probably expect IRS scrutiny. Filing requirements for some states might differ from federal requirements. 1 Do you get a 1099 from GoFundMe6 Can I […]All freelancers submit their tax information for Form W-9 (U. October 31, 2023. Finally, you are required to issue and essentially mail out all of your Form 1099s to your vendors by January 31. Crowdfunding platforms such as GoFundMe need made it easy for donate to owner favorite cause or someone on need. 25 is sent to the beneficiary of the fundraiser after processing and appropriate verification. 30 is automatically deducted from each donation, so you never have to worry about paying a bill. However,. Hi Friends & Family, I am Sharon, Danny Cornell’s Mom. Form 1099-K. Either way, if a 1099-K is issued, the IRS could start asking questions, so make sure to save proof of how the money was raised (copies of the gofundme page, etc. GoFundMe, one of the best known crowdfunding platforms, notes on its site that donations to a personal GoFundMe fundraiser are "generally considered to be personal gifts and are not guaranteed to be tax deductible. Your lender will send you a copy of the form, usually by January 31, and will send. Coinbase complies with IRS regulations and reports relevant information. In addition, they accept tips from donators. When you donate to a GoFundMe Cause, we distribute your tax-deductible donation to the individuals, organizations, and charities that need it most. These amounts reflect the money taxpayer received as the result of gifts from donors. There are several types of 1099 forms, but the most common is 1099-MISC, in which your business reports miscellaneous income. Does GoFundMe send a 1099? GoFundMe and most other crowdfunding sites usually send 1099-Ks if the campaign raised more than $20,000 and had more than 200 donors. When you’ve donated, you’ll need at know the deduction rules. S. 9% as of December 2022, plus an additional $0. If you want another copy of your donation confirmation receipt, please follow these steps to request one: Follow the link to our contact form here. From WePay (GoFundMe's payment processor) support. Topeka, KS 66625-3506. 30 per donation) $48. 9% of the total plus 30-cents per donation. Does Gofundme Send A 1099? GoFundMe only sends a 1099 if you make over $600 in donations. be penalized for failing to do so. As of September 30, 2021, Nonprofits can no longer start new campaigns or accept donations online. The form will show your gross earnings from crowdfunding transactions and assist you in reporting your income. You won’t be issued a tax receipt from our company. 5-Minute. Oct 18, 2022 3 min read Tax Guides Do I Have to Pay Taxes on GoFundMe Money? Content provided for general information. org, an independently registered 501(c)(3) public charity. If your campaign earns over $20,000, the payment processor must send you a 1099-NEC. . However, the rules are set to change for the 2023 tax year. Do Gofundme Take A Cut. On fundraisers for individuals or businesses it charges a 2. This applies to a bank, brokerage, or other financial institutions. If you have GoFundMe receipts, you should probably expect IRS scrutiny. The platform doesn’t take anything from individual campaigns, instead charging a 2. 9% +$0. Deryck Artero is organizing this fundraiser. Only donations made to GoFundMe charity fundraisers are guaranteed to be tax-deductible in the US, the UK, Canada, Ireland and Australia and will automatically receive tax receipts from our charity partner, PayPal. Example statement to attach: "All amounts in the 1099-K are excludable from income under IRC Section 102. Start a place of worship fundraiser. If you have GoFundMe receipts, you should probably expect IRS scrutiny. 3,468. Those gifts were used to pay the medical expenses of the taxpayer and are justifiably excludable from gross income as gifts. Does GoFundMe send a 1099? GoFundMe and most other crowdfunding sites usually send 1099-Ks if the campaign raised more than $20,000 and had more than 200 donors. How much does it cost to set up a GoFundMe page? GoFundMe no longer charges a platform fee, so it is free for people to start a campaign. About form 1099-K. However, GoFundMe does collect a payment processing fee of 2. Fundrazr. We've also provided a downloadable checklist at the end of the article to help keep you on. , 2. An organization does not withhold income tax or Social Security and Medicare taxes from, or pay Social Security and Medicare taxes or federal unemployment tax on, amounts it pays to an independent. 02For taxpayers who may have already received a 1099-K as a result of the statutory changes, the IRS is working rapidly to provide instructions and clarity so that taxpayers understand what to do. 5 out of 5 on Trustpilot, based on over 20,000 reviews. This way the 1099-K amount is. This requirement has caused some confusion among individuals who start a GoFundMe account and receive donations over the $20,000 limit and even at the IRS. This new 1099 form is what 99% of people filing 1099s are going to use, since the. , 2. Learn brokerage account tax-filing rules, including when consolidated 1099s are due and the deadline for the 2021 tax year. 30 per donation. And now the IRS wants more than $19,000 of the money. Who gets the GoFundMe tip?For example, Facebook's policy states that any funds received through a personal fundraiser on the social media platform may be taxable and that if more than $20,000 is raised, a 1099-K form from. Sharon Roberts is organizing this fundraiser on behalf of Sarah Cornell. If your contractor is an LLC that files taxes as a corporation (S Corporation or C Corporation), they are treated as a corporation for tax purposes and this means that they generally do not have to receive a 1099-NEC. Penalties for not providing a required 1099-MISC form range from $30 to $100 depending on when you finally issue the form. The purpose of Form. If you work as an independent contractor you are not an employee and you do not have an employer. Note that you're responsible to send money to the intended cause. Confirm with your tax advisor if you’re eligible to make a claim for treaty benefits. Are GoFundMe Donations Taxable? Tax Tips on Crowdfunding. 2. Let’s show them as a Horsemen's community, what we can do to help in this time of need. Defendant must still issue a Form 1099 to Sue for the full $1 million. If you do share your tax info, your tax rate may be up to 30% of your U. the third-party payment network must issue a Form 1099-K when the aggregate number of transactions exceeds 200 and the total value exceeds $20,000. A PSE must file Form 1099-K for payments made outside the United States to an offshore account if any of the following apply. If you have GoFundMe receipts, you should probably expect IRS scrutiny. Crowdfunding platforms such as GoFundMe will made it easy to donate to your favor cause or someone in need. Sometimes, you even receive. Essentially, they are issued to everyone except corporations. A 1099-K form is an informational return form that summarizes the activity of your account and helps you report your taxes. Individuals can deduct up to 100% of their income in qualified donations. The person receiving the funds could receive a Form 1099-K, and the IRS will expect to see that income reported on his or her tax return. Gifts to friends are not reported on an income tax return - and that is the recipient or the donor. $1,099. GoFundMe and most other crowdfunding sites usually send 1099-Ks if the campaign raised more than $20,000 and had more than 200 donors. -taxpayer) or Form W-8BEN (non U. The amount is reported on Box 1 of. Debt forgiveness of employees and independent contractors have different reporting requirements. Create your fundraising campaign. We VERIFY where your money goes when you donate to a fundraising campaign on the websites. GoFundMe and most other crowdfunding sites usually send 1099-Ks if the campaign raised more than $20,000 and had more than 200 donors. Only donations made to GoFundMe charity fundraisers are guaranteed to be tax-deductible in the US, the UK, Canada, Ireland and Australia and will automatically receive tax receipts from our charity partner, PayPal Giving Fund. PayPal Nonprofit Fees. m. You’ll also need to include the total amount you’re reporting but just for the 1099 you’re attaching to this form. Defendant is not required to issue a Form 1099 to Hal. Does GoFundMe send a 1099? Arguably, it does. " Does GoFundMe send a 1099? GoFundMe, being merely the administrative platform, will not report donations as income or issue any tax documents to donors or donees. Donors have the option to tip GoFundMe Charity to support our business. Deadlines to send the IRS all other Form 1099s. Advertiser disclosure . That could be a tax bill and it could be a full audit. The IRS also noted that the existing 1099-K reporting threshold of $20,000 in payments from over 200 transactions will remain in effect. Venmo) is required to withhold 24% of those payments and send it to the IRS for backup withholding. NEC stands for Non-Employee Compensation and Form 1099-NEC is taking the place of what used to be recorded in Box 7 of Form 1099-MISC. Rich Henderson is organizing this fundraiser. income. 5 million annually per business. How To File Gofundme Amount On Your Federal Taxes. If you’ve donated, you’ll need to know to deduction rules. Improve this answer. Per IRS requirements, the third-party payment network must issue a. Alexandra Sanchez. Per IRS requirements, the third-party payment network must issue a Form 1099-K when the. GiveSendGo is the leading freedom fundraising platform. tgrant@post-gazette. If you pay independent contractors, you may have to file Form 1099-NEC, Nonemployee Compensation, to report payments for services performed for your trade or business. e. When a GoFundMe page is set up, a WePay Account is created for when the time. Click Withdraw to Bank. If you have connected a bank account when you created your GoFundMe, the money will be automatically deposited. 1099-K. R. The Bottom Line. 9 percent payment-processing fee on each donation, along with 30 cents for every donation. Generally, contributions made to “crowdfunding” campaigns (such as GoFundMe) are considered to be personal gifts, and as such, are not taxed as income to the recipient. GoFundMe and most other crowdfunding sites usually send 1099-Ks if the campaign raised more than $20,000 and had more than 200 donors. It is provided to you, the IRS, and some US states if your total gross payments are greater than $600 in 2023. No deadlines or goal requirements. Base pay, surges and customer tips are on 1099-K, with incentives and referrals on 1099-NEC. Just click “Start New Campaign” and you’ll be able to start. This form is not required for personal payments, only for business payments. GoFundMe is a third-party platform that connects donors with people who need help with medical bills, memorial funds, and other situations. Does GoFundMe take 5 %? $1. Otherwise, you can manually add your banking information to withdraw the funds. Generally, the funds raised through GoFundMe are processed by a third-party organization, such as PayPal. PayPal’s standard processing fee for donations is 2. Get help. Starting and running a fundraiser What to know when creating, launching, and running your fundraiser. Payer’s information: List your business’s name and address in the top left section of the form. Tip: Before you share your fundraiser on social media, email friends and family requesting them to share it on their profiles as soon as you do to maximize reach. S. These sites include GoFundMe, Kickstarter, Patreon, and many others. income. Expert does your taxes An expert does your send, start to finish . A 1099-H is for Health Coverage Tax Credit (HCTC) Advance Payments. Charities will be solely responsible for taxes based on applicable international, federal, state, local or any other taxes or levies, or for any applicable taxes based on their net income or gross receipts (if any). How does GoFundMe Get Paid? GoFundMe makes money from platform and transactions fees as well as donations provided by users. The short answer: maybe. Simple pricing, powerful fundraising. Yes, you will have to provide the Child Care provider information (her social security number) on the Form 2441- when you have the Dependent Care Benefits, you are required to report. She's been working two jobs to care for her family. They're made from performance fabrics that offer more protection than homemade face coverings. If you've not met the $600 threshold, this does not exempt US taxpayers from the responsibility to report all cryptocurrency. Some Facebook posts advertising Bed, Bath & Beyond clearance sales are scams. How much does GoFundMe take 2021? Does GoFundMe send a 1099? How do you write a contribution message? How do you write a fundraising email?. That could be a tax bill and it could be a full audit. If you have GoFundMe receipts, you should probably expect IRS scrutiny. Generally, the Medicaid income cap for long-term care is $2,382 per month in 2021. " This will allow you to e-file, but the IRS may send you a letter asking for more information. IRS filing due date for 1099-NEC is January 31. In 2014, the IRS issued Notice 2014-21, 2014-16 I. If you make at least $20. 75 is deducted by our payment partner as a transaction fee, which includes debit and credit charges (i. Will I receive a Form 1099-K? As of 2015, the IRS has clarified that WePay is not required to send a Form 1099-K with respect to payments that are made solely as gifts or donations. A 1099-K only means that you received $600 or more during the year. jwb_cpa. If you have GoFundMe receipts, you should probably expect IRS scrutiny. Does GoFundMe take a percentage? GoFundMe has a 0% platform fee for organizers. You have interest from a bank, you get a 1099 for that when it’s over $600. This year, GoFundMe decided to end the GoFundMe Charity. When you pay a corporation, you are not required to send it a 1099. Unless the account or payment is designated as personal, it will trigger a reporting requirement if the annual amount exceeds $600. If you paid an independent contractor such as a graphic designer, social media consultant, web designer, or copywriter more than $600 within the calendar year, you will. Payers must fill out a 1099 form and then send one copy to the IRS and another copy to the payee. As discussed below, the income tax consequences depend on all the facts and circumstances. The service itself is free to use for users and donators in the United States of America, the United Kingdom and Canada. For the most part, they do. " This means that it should be reported on the "Other Income" line of your Form 1040. It’s not foreign, this is something that’s not new. Also, the GFM was made for me on behalf of a friend of mine, but the…Withholding with 1099 forms isn't common, but it does happen. You do not have the option to donate anonymously with GoFundMe. $600" to show the amount of the purchase price that offsets the reported proceeds. Team up with a local businessAn online network is required to file and send a 1099-K if it transfers at least $600 to you during the year. Why GoFundMe takes percentage of donations. Fundrazr offers tiered fees solutions where you can pass fees on to your donors, and only pay transaction fees of around 3%, or you can accept the additional 5% fee as part of your fundraising costs. But you can always check with a tax professional to be sure. Arguably, it does. If you organized a. Once your campaign has raised the funds it needs, the money will arrive in your bank account. The IRS now requires third-party payment processors to issue a form 1099 to anyone who receives more than $600. We'll guide yours step-by-step. If a charity receives a donation of $100, they will net $97. Additionally, you don't need to send 1099’s to sellers of merchandise, freight, storage or similar items. This means that your earnings are subject to the self-employment tax. Form 1099 is a type of tax form that records payments received that don't come from salary or wages. You have interest from a bank, you get a 1099 for that when it’s over $600. If you want another copy of your donation confirmation receipt, please follow these steps to request one: Follow the link to our contact form here. Sometimes the payment processor used by the crowdfunding website,. But donors shouldn't assume their contributions are tax-deductible. People may receive Form 1099-K for money raised through crowdfunding. What payments does GoFundMe take? "The whole trigger would be the 1099 that GoFundMe sends you, now the 1099 is out there, the IRS gets the 1099 and they're looking for that income somewhere on your return," said O'Donnell. If you have GoFundMe receipts, you should probably expect IRS scrutiny. The 1099 tax rate for 2022 is 15. The 1099-K form is submitted by Shopify to the IRS if you are using Shopify Payments and meet the following requirements: For calendar years prior to (and including) 2022: You receive more than 20,000 USD in gross payments and have more than 200 transactions. Payment processors may misclassify a payment and send a Form 1099-K for a gift or donation. A 1099 form, also called an information return, is a document sent to you by an entity that paid you certain types of income throughout the tax year. 14. For 1099-NEC, non-employee compensations, the Minimum Amount Reported is $600. the sum of all payments made to the person or. com Do you have to pay taxes on GoFundMe? Generally, contributions made to “crowdfunding” campaigns (such as GoFundMe) are considered to be personal gifts, and as such, are not taxed as income to the recipient. The amount that you send someone will still appear on the primary campaign page, but it will be listed as. Depending on the type of transaction, they may need to complete Form 1099-NEC, 1099-MISC, 1099-K. Also keep in mind that they may or may not send you a 1099 for less than $600 but may report all payments to the IRS. You can do everything from raising. I know that Paypal sends them so I am just trying to understand if Apple does. If Form 1099-K is required to be filed. If I pay a contractor using Apple Pay, does Apple send them a 1099 at the end of the year? If I pay a contractor using my Apple Pay is Apple Pay considered a 3rd Party that will send out 1099's at the end of the year or do I need to send a 1099 to the contractor. TTY/TDD: 866-937-4130. Crowdfunding platforms such how GoFundMe have made it easiness the donate to to favorite cause or someone in must. Does GoFundMe send a 1099? Arguably, it does. The payer fills out the form with the appropriate details and sends copies to you and the IRS, reporting payments made during the tax year. 6 out of 5 on Trustpilot―easily the best score we’ve seen for a crowdfunding platform. Tip: Before you share your fundraiser on social media, email friends and family requesting them to share it on their profiles as soon as you do to maximize reach. GoFundMe has a 4. 31, 2021, a Form 1099-K was required to be filed. Corporations are limited to a deduction equal to 25% of their taxable business income. There are a number of 1099s through which businesses of all kinds report the money they pay, including 1099-INT for interest income, 1099-DIV for dividends and several other 1099 forms to report. View community ranking In the Top 1% of largest communities on Reddit Raised over 15k through gofundme. GoFundMe will send a copy of the counter-notice to the. Everything S-Corp owners need to know about 1099 forms. For Forms 1099-MISC, 1099-DIV, 1099-INT, and 1099-R, business owners have to compile all of the 1099s and MAIL them (if you choose to use MAIL) to the IRS with a Form 1096 by February 28th. ) If you agree to do anything for the money (web cam, go on dates, etc). Most crowdfunding sites sent 1099-Ks if the campaign raised more than. It’s not an increase in tax – the tax rate hasn’t gone up. There is normally no relationship between the donor and the donee. Say you organized a GoFundMe to help a neighbor whose house burned down in a wildfire. Typically, money raised through a crowdfunding site such as Go Fund Me is processed through third-party settlement entities such as PayPal. GoFundMe, being merely the administrative platform, will not report donations as income or issue any tax documents to donors or donees. Full Maintenance for personal taxes; Full Service for business income; Do. Payment settlement. 9% + $0. Only contributions made to GoFundMe charity fundraising campaigns are assured to be tax deductible in the US, the UK, Canada, Ireland, and Australia. buzzybody21 • 5 min. To date, the crowdsourcing effort has collected $50,000. Received at least 200 transactions. 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 . If you collect $600 or more for the sales of goods and services through a payment services company without first providing your tax info, that payment services company (i. If you have GoFundMe receipts, you should probably expect IRS scrutiny. Do I need to send 1099’s?. Send help right to the people and causes you care about. Double check that your tax form status is a green “Approved” in AdSense for YouTube. Updated. Send help right to the people and causes you. How Giving on GoFundMe Works. Currently, GoFundMe takes 5 percent of donations, and payment processors take 2. How much does GoFundMe charge for the transaction fee? GoFundMe charges one transaction fee—that’s it. . These contributions also come with free tax receipts from our charity partner, PayPal Giving Fund. One-third of the people living on these two reservations do not have running water, and another third don't have electricity. Just because you receive a 1099-K form does not mean that you are required to pay taxes on the income. Launched in 2010, GoFundMe is the world’s largest social fundraising platform, with over $3 billion raised so far. That means if a. Pick a platform. For tax year 2021, the threshold for a crowdfunding website to file and furnish a Form 1099-K was met if, during calendar year 2021, the total of all payments distributed to a person exceeded. The company asks donors to leave a voluntary tip after making a donation. 9% plus 0. The Bottom Line. GoFundMe will send a notification to all the contributors and process refunds within 14 business days. Another straightforward way to spot a scam is to read the campaign description and any associated updates thoroughly. If you have GoFundMe receipts, you should probably expect IRS scrutiny. Every year, the United States IRS requires that Our payment processor provide a form called a 1099-K for each Account that meets all of the following criteria in the previous calendar year: Account is based in the United States (Owners do not need to be US citizens. GoFundMe taxes are non-taxable for the most, however, there may be certain situations and donations which may require taxable donations, depending on the amount that is being raised form the donations and where the donation is being used or the use of funds for a particular cause, but the GoFundMe connects with all like-minded people who come. For the 2022 tax year, taxpayers will follow guidelines set forth by the old IRS rule — you should receive a 1099-K form if you earned at least $20,000 or received at least 200 transactions. Crowdfunding platforms such as GoFundMe have made computers easy to donate to the favorites cause or someone in need. Continuous use. When tax time comes, simply import your donations from ItsDeductible into TurboTax. The positive reviews praise GoFundMe’s customer service, saying it quickly handled mistaken payments and money withdrawal problems, among other issues. Print and mail your return and attach a statement explaining that you received a 1099-K for gross proceeds and that the funds were gifts for medical care. For calendar year 2023 and later: You receive more than 600 USD in gross. Crowdfunding sites, like GoFundMe, are legally required to file a Form 1099 with the IRS for campaigns that receive over $20,000 in donations or over 200 donations. Even with that cost, GoFundMe is the world's number 1 fundraising site. Banks usually send this out if someone earned $10 or more in interest. See moreIs GoFundMe taxable? It depends. After you donate, we’ll send you updates that explain how your financial support has made a. The total amount paid for either type must be at least $600 for Uber to submit the appropriate form. 1099-INTs are typically issued by banks, brokerages, or other financial institutions. Choose the fundraiser you want to view. Clients can find help on the TD Ameritrade Tax Center. Use your online fundraiser to organize. Get out a pen and paper and write a short letter telling your fundraising story and asking the recipient if they would consider donating to or sharing your GoFundMe. If you want to minimize your personal imprint on a campaign where you send a donation, it is possible to restrict the general public from seeing who you are. Now, when you make a donation through GoFundMe, the site suggests you tip the. Where to send extension of time to furnish state-ments to recipients. There was a low 3% processing fee and the ability to add a crowdfunding link to nonprofit websites, but organizations’ options to raise funds were pretty limited. You would receive $96. Donations through GoFundMe are processed by third-party organizations that are subject to the IRS reporting rules for payment networks. If the money you raise through crowdfunding is given without receiving something in.