Crowdfunding has become one of the most common ways for families, small businesses, and communities to support people in need. Whether it’s helping a neighbor with medical bills, assisting a local business after a fire, or supporting a friend experiencing hardship, GoFundMe and similar platforms make giving quick and easy.
But when tax season arrives, one question comes up again and again: Are GoFundMe donations tax-deductible?
In almost all cases, no, and for Connecticut taxpayers, it’s important to understand the rules so you avoid surprises when filing your 2025 tax return in 2026.
Below, we break down what counts as a charitable deduction, how to determine whether a donation is deductible, and how much you must donate (and under what conditions) for it to make a difference on your tax return.
Why GoFundMe Contributions Aren’t Usually Deductible
Even though GoFundMe collects money for people in need, most GoFundMe campaigns do not involve qualified charitable organizations.
For the IRS to consider your donation tax-deductible, it must be made to a 501(c)(3) tax-exempt organization, such as:
- A recognized nonprofit
- A registered public charity
- A religious organization
- Some private foundations
- Certain disaster-relief organizations
A personal GoFundMe campaign, for a friend, neighbor, local family, or privately-run cause, is considered a personal gift, not a charitable donation. Personal gifts are never deductible, even if they support a very worthy cause.
GoFundMe does host a small number of campaigns through certified charities, but they are clearly labeled “Certified Charity” or “GoFundMe.org” (GoFundMe’s affiliated 501(c)(3)).
How to Tell if a Donation Is Really Tax-Deductible
Before counting a contribution as a charitable deduction, you should make sure the organization is legitimately recognized by the IRS.
Here’s what to check:
- Verify the Charity: Use the IRS Tax-Exempt Organization Search tool to confirm the organization’s 501(c)(3) status.
- Check Your Receipt: For any single donation of $250 or more, you must have a contemporaneous written acknowledgment from the charity.
- Watch for Red Flags: A fundraiser is not tax-deductible if:
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- The donation is going directly to a person or family
- The organizer says, “Your donation mightbe tax-deductible.”
- You receive goods or services in return (unless properly reported as a partial deduction)
If you’re unsure, simply ask if they are a 501(c)(3) organization, and if so, for their EIN. A legitimate charity will be happy to answer your questions.
How Much Do You Need to Donate to Benefit Tax-Wise?
Most people only benefit from charitable contributions if they itemize deductions. Since the Tax Cuts & Jobs Act increased the standard deduction (and OBBBA is scheduled to extend these higher amounts), many taxpayers do not itemize because the standard deduction remains higher than their total eligible itemized deductions.
Standard Deduction for 2025 (Filed in 2026)
(Final IRS numbers are expected late 2025; these are expected ranges)
- Single: $15,750
- Married Filing Jointly: $31,500
- Head of Household: $23,625
This means your total itemized deductions (mortgage interest, state/local taxes up to $10,000, charitable contributions, medical expenses above the threshold, etc.) must exceed your standard deduction before charitable giving affects your tax bill.
For many Connecticut Shoreline families, especially those without a mortgage or in lower-tax towns, this threshold can be significant. In short, even legitimate charitable donations may not reduce your tax bill unless you itemize.
Charitable Giving Best Practices for 2025
If you want your giving to support your community and provide tax benefits, here are simple steps to follow:
- Choose Qualified Charities: Local shoreline nonprofits, food pantries, educational foundations, environmental groups, and community organizations are often 501(c)(3)s.
- Avoid Personal Crowdfunding for Tax Purposes: If you contribute to a GoFundMe for personal reasons, treat it as what it is, an act of generosity not a tax deduction.
- Keep Good Records: For any charitable gift:
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- Save receipts
- Track the date, amount, and organization
- Keep acknowledgment letters for $250+ gifts
- Consider Bunching Donations: If your charitable giving varies from year to year:
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- Combine several years’ donations into one year
- Itemize that year and take the standard deduction the next
- This strategy works especially well for donors whose giving is close to the standard deduction threshold.
- Get Tax Advice Early
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- If you plan larger donations in 2025, especially before year-end, talk with us so we can help you structure them for maximum impact.
When in Doubt, Ask Us First
At Bailey Scarano, we regularly advise small and mid-sized business owners and families throughout Connecticut on tax-efficient giving strategies. Charitable deductions can be powerful, but only when handled correctly.
If you’re planning a substantial donation, organizing a fundraiser, or simply want to understand what qualifies (and what doesn’t), we’re here to help. Contact us anytime to review your giving plans for 2025 and ensure your charitable strategy aligns with your tax goals.