Raising money for someone else on GoFundMe is common during medical emergencies and family crises. Organizers should clearly identify the beneficiary, explain where donations will go, preserve transfer records and understand when crowdfunding can create US tax questions.

Can you create a GoFundMe for someone else?

Yes. GoFundMe allows an organizer to raise money on behalf of another person and designate that person as the beneficiary.

GoFundMe says adding a beneficiary allows the person receiving the assistance to enter their own bank information and transfer fundraiser proceeds directly to their account. Their name is also shown on the fundraiser page.

For community or medical fundraisers, this can give donors greater clarity about who ultimately receives the money.

Should the organizer receive the money?

An organizer can sometimes receive funds and later transfer them to the intended recipient. However, GoFundMe recommends clearly explaining the organizer's relationship to the beneficiary and exactly how the money will reach or be used for that person.

Where possible, GoFundMe says adding the intended recipient as the beneficiary is the preferred approach.

If the beneficiary receives funds directly, they control their own bank-transfer information rather than sharing sensitive banking details with the organizer.

Does the organizer owe tax on the donations?

Not automatically.

The IRS says money received by an organizer who is raising funds for another person may not be included in the organizer's gross income if the organizer subsequently distributes the funds to the person for whom the campaign was created.

Likewise, contributions made from generosity, with donors expecting nothing in return, may qualify as gifts and generally are not included in the beneficiary's gross income. Tax treatment ultimately depends on the circumstances.

What records should organizers keep?

The IRS recommends keeping complete records of the fundraiser and how the money was distributed for at least three years.

Useful records can include the fundraiser description, beneficiary information, platform statements, bank transfers, payments made on the beneficiary's behalf and correspondence explaining the purpose of the campaign.

These records can be particularly important when substantial amounts pass temporarily through the organizer's bank account.

What if a Form 1099-K is issued?

Receiving a Form 1099-K does not by itself mean the fundraiser money is taxable.

Current IRS rules generally require third-party settlement organizations to report payments for goods or services when they exceed $20,000 and more than 200 transactions. Personal gifts are not supposed to be reported as payments for goods or services, although a form may sometimes still be issued.

Organizers who receive an unexpected tax form should preserve their fundraiser and transfer records and consider professional tax advice rather than assuming the entire amount is taxable.

For anyone raising money for a relative, friend or community member, the safest approach is transparency: identify the intended beneficiary, explain how donations will be delivered and maintain a clear trail showing where the money went.

This article provides general information and is not individual tax or legal advice.