Fundraise
How to Start a Fundraiser the Right Way
Whether you're raising money for a children's hospital or for a neighbor's medical bills, the same rules apply: be clear, be honest, and make sure the money ends up where you said it would.
Two very different kinds of fundraiser
| For a charity | For a person or family | |
|---|---|---|
| Who gets the money | A registered nonprofit | An individual |
| Tax-deductible for donors? | Yes, if the charity qualifies and receipts the gift | No |
| Best tool | The charity's own peer-to-peer page | A reputable crowdfunding platform |
| Key step | Get the charity's permission | Get the beneficiary's permission |
Fundraising for a charity
- Contact the charity first. Ask whether it has an official fundraising page you can personalize. Most larger charities do; donations go straight to the charity and donors get automatic receipts.
- Use its name correctly. Don't create your own logo or account in the charity's name without permission.
- Don't handle the money if you can avoid it. Let gifts go directly to the charity. If you collect cash or checks at an event, have checks made out to the charity, count cash with a second person, and deliver it promptly.
- Know the rules for events. Raffles are gambling under many state laws and may need a license. Check before you sell a ticket.
Fundraising for a person or family
- Get permission from the person you're raising money for, and agree on how much to share publicly.
- Be specific. "Help cover the $8,000 in rent and travel while Maria is in treatment" builds more trust than "Help Maria."
- Make sure the money reaches them. Set the beneficiary as the withdrawal account, or explain exactly how you'll transfer funds.
- Be clear about taxes. Tell donors their gift isn't tax-deductible.
- Post updates, especially about how money was used.
Choosing a platform
- What are the platform and payment-processing fees?
- Does it allow fundraising for a charity, with direct deposit to the charity?
- Does it offer refunds or protection if a campaign turns out to be fraudulent?
- Can donors give anonymously? Can you post updates?
Setting a goal and telling the story
- Pick a real number tied to a real need, and say what happens if you raise more.
- Tell one story well, with a photo, in plain words.
- Ask your inner circle first. Campaigns that raise a good share early tend to keep going.
- Thank people personally and quickly.
Keeping trust
A fundraiser is borrowed trust: people give because they trust you. Spend the money only as promised. If plans change, tell donors and offer refunds if needed. Keep simple records of what came in and where it went. Your good name is worth more than any goal.
Questions people ask
Are donations to a GoFundMe tax-deductible?
Gifts to an individual through a personal crowdfunding campaign are not tax-deductible charitable contributions. Donations made through a campaign that goes directly to a qualified charity can be, if the charity provides a receipt.
Do I need permission to fundraise for a charity?
You should get it. Many charities have rules about using their name and logo, and some states regulate people who solicit on a charity's behalf. Contact the charity first; most offer official peer-to-peer fundraising pages.
Does money raised for someone count as income?
Gifts to an individual are generally treated as gifts, not income, but tax rules depend on the situation. If large amounts are involved, the recipient should talk with a tax professional.