Q: Is GoFundMe actually a realistic way to raise money during a financial emergency or important life event?
A: For many people, it can be. GoFundMe has become one of the most widely used fundraising platforms, helping people raise billions of dollars each year for medical expenses, funeral costs, disaster recovery, education, temporary financial hardship and other important needs.
Here are a few important things to understand:
Small contributions can add up quickly. Many successful campaigns are built not on a few large donations, but on many smaller contributions from friends, family, co-workers and community members.
Clear storytelling matters. The strongest campaigns usually communicate a clear, honest story that helps people understand the need and the impact of their support.
Sharing and updates are important. Campaigns often perform better when shared regularly through social media, text messages and personal networks, especially when updates keep supporters informed.
GoFundMe is no longer limited to medical emergencies. People now use crowdfunding for a wide range of situations, including housing transitions, memorial expenses, education costs, community projects and unexpected financial setbacks.
It’s important to stay realistic while hoping. While many campaigns do not fully reach their fundraising goals – and some raise only modest amounts – well-organized campaigns with strong community support can still provide meaningful financial help and reduce pressure during difficult situations.
Donations made to personal GoFundMes are generally considered to be gifts and not taxed as income (and are not tax deductible for givers). But it’s best to keep records and check with a tax professional. GoFundMe doesn’t report the money you raise or provide tax documentation.
The bottom line: GoFundMe should usually be viewed as one possible financial support tool, not a complete financial plan. But for many people, it has become a meaningful way to bring together community support during difficult moments. Often, the strongest campaigns are not the most polished – they are simply the most honest and clear.
Send questions about your taxes to Vincent Hicks, a CPA based in Cambridge who has more than 20 years of experience, at vincent@hickscpasolutions.com. You can call Hicks at (859) 553-0788.
About The Author
