Are the donations I receive taxable?

Crowdfunding Advisors Payments & Providers

Are the donations I receive taxable?

Payments & Providers
— Updated: June 16, 2020

I’m running a campaign through your service. Will I have to pay taxes on the money I receive?

The short answer:

Maybe.

The long answer:

Contributions received through crowdfunding may be considered taxable income if the recipient of the contributions does not have tax-exempt status.

What this means is that if you’re receiving funds through a crowdfunding campaign but you don’t have tax-exempt status, then you may have to pay taxes on the money you’re raising. To find out for sure, contact an appropriate tax professional in your area.

If you’re an Authorized Officer of a Non-Profit Organization with tax exempt status, you can learn more about our Non-Profit features on this link here.


I’m a contributor to a campaign running through your service. Will I be able to deduct my contribution for tax purposes?

The short answer:

Maybe.

The long answer:

FundRazr is not a Non-Profit platform with a tax-exempt status. We do offer the ability to issue formatted receipts as a feature for our non-profit and charity customers, but we cannot issue tax receipts on behalf of individuals or groups without a tax-exempt status. Only registered charities or non-profits with tax-exempt statuses are able to issue receipts through our system.

This means that if you contributed to a campaign, you will receive a Payment Notification email with the transaction details. If the donation is for a tax-exempt charity, you will receive your receipt in an email a few minutes later. If you do not receive a tax receipt, it is likely that the group you donated to in unable to issue a receipt to you. To find out for sure, simply contact the person or organization who created the campaign you contributed to.

If the recipient of your contribution has tax-exempt status but you weren’t automatically issued one, please contact them to obtain a tax receipt. If they don’t have tax-exempt status, then you won’t be able to deduct your contribution for tax purposes.


Please note: Because of differing individual circumstances and jurisdictions, we do not provide information or specific advice on taxation. We recommend that you consult an appropriate tax professional who can provide you with information and advice relevant to your specific situation and location.