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Gift Tax Considerations for Crowdfunding

While the amounts solicited in many online campaigns are modest, the dollars involved across the spectrum of all charitable-type crowdfunding sites is significant. Considering the aggregate funds involved, it’s surprising that some crowdfunding sites appear to provide limited guidance to visitors, donors, those creating campaigns or those benefiting as to the tax consequences.

It’s unlikely that many users are even aware of the possible tax issues for the various types of campaigns. This is why guidance from the Internal Revenue Service providing some practical leniency and updating policies to reflect the realities of the crowdfunding phenomena is important.

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Julian Schubach is an Investment Advisor Representative of Nosuris, Inc., a New York State Registered Investment Advisory. Investment Advisory Services are offered through Nosuris, Inc., a NYS Registered Investment Advisory. Please visit for additional disclosures. Check the background of this firm on FINRA’s BrokerCheck.

©2016 by Julian Schubach