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Will I have to pay taxes on the contributions I receive?


✩ 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 create a Non-Profit Organization campaign by following the steps here, and your campaign will be able to automatically issue tax receipts to your contributors.


✩ 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:

Contributions made to FundRazr campaigns may be considered taxable if the recipient of the contributions does not have tax-exempt status.  

What this means is that if you contributed to a campaign, you will receive a Payment Notification email with the transaction details, but if you're planning on claiming your contribution for tax purposes you can only do so if the user you contributed to has tax-exempt status. 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.

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