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Post by t-bob on Jan 9, 2023 1:07:04 GMT -5
We see people use GoFundMe to raise money for themselves, friends and family, or even complete strangers in random acts of kindness. People raise money for just about everything, including medical expenses, education costs, volunteer programs, youth sports, funerals & memorials, and even animals & pets.
It sounds like a rude thing
It's like as in the circus with pitches of snake-oil salesmen have timeless appeal to gullible
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Post by Hobson on Jan 9, 2023 10:17:28 GMT -5
I've donated to a GoFundMe account exactly once and it was for medical and funeral expenses for somebody I knew. I don't really see it as any different than having a special bank account set up for such purposes back in the old days. However, I do know that GoFundMe takes a cut of the donations, so that bothers me a bit.
It's probably easy to make up a sad story and get people to donate. I doubt that GoFundMe verifies anything.
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Post by TKennedy on Jan 9, 2023 11:25:08 GMT -5
There was a luthier back east that set up a go fund me account because he allegedly needed money for legal fees. He made his pitch on a luthiers forum. His neighbors were trying to shut his business down because of noise from power tools and traffic from customers.
I looked up his address on goggle maps and he was in an upscale neighborhood and had a swimming pool.
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Post by james on Jan 9, 2023 12:54:03 GMT -5
Gofundme is, although frequently an excellent resource for those in need of funds, able to be misused by bad actors. Bannon, Kolfage et al. and the "Build the Wall" scam spring to mind. (I'm not sure how the NY money laundering and conspiracy prosecution is proceeding).
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Post by aquaduct on Jan 9, 2023 13:24:32 GMT -5
Back about a decade ago when we were seriously doing music, Go Fund Me's seemed to be quite the hip thing to do for aspiring musicians who felt compelled to record their Magnum Opus that would guarantee their life on easy street where all the cool people did coffee houses all day. Never mind that real musicians tended to laugh their rear ends off at such a precious idea, they'd immediately set up a lofty Go Fund Me to raise maybe $15,000 for the recording, etc.
Inevitably they'd discover that after they'd hit up their parents and other relatives, they could only squeeze about a tenth of that goal out of their "fan base" and the whole project would be marooned on the shoals of reality.
That's my entire experience with Go Fund Me ever. Never set one up. Never contributed a dime.
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Post by majorminor on Jan 9, 2023 13:43:57 GMT -5
I'll occasionally plug in my town as a search parameter and kick in a few bucks to local causes. Usually I know of the person and/or situation. Typically vet bills or house burnt down, or medical expenses. Once for a down and outer with car problems that I went to school with back in the day. I occasionally come across listings that are eyebrow raisers and definitely seem like panhandling so no doubt it's a thing.
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Post by John B on Jan 9, 2023 13:52:59 GMT -5
I have seen musicians use Kickstarter to fund albums. I have funded a few that way, which means I ended up with my name on a CD insert or something similar, plus I received a tchotchke or two. These were what I many would call "real" musicians - i.e., they had been on major labels at some point in their recording career, maybe even top 40 charts (or similar for their respective genre). Not just basement players trying to make it big. For those folks, it worked. I also funded The Wrecking Crew documentary that way, too.
GoFundMe is usually more about personal expenses/bad situations. No different than the jar raising money to help a local kid in need sitting at a cash register, only with greater visibility. I've contributed to medical expense funds for high school friends and locals in town to whom I have some connection (friend of a friend, etc.). I've also contributed to other various fundraisers by people whom I know. In every case, I know I'm giving money away with no expectation of any return, and for causes for which there would not logically be any return. But I have a connection to whatever the fundraiser is.
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Post by jdd2 on Jan 9, 2023 17:00:08 GMT -5
I wonder what the tax issues are for either (GFM or kickstart)--what kind of and how extensive the record-keeping needs to be, both as it comes in and as it is used.
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Post by t-bob on Jan 9, 2023 18:24:48 GMT -5
I wonder what the tax issues are for either (GFM or kickstart)--what kind of and how extensive the record-keeping needs to be, both as it comes in and as it is used. It just isn't not untruth - the IRS see the GFM or Kickstart - they have a huge ticket or a (.........) {{{{{I can't remember a word}}}}
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Post by aquaduct on Jan 9, 2023 19:47:44 GMT -5
I wonder what the tax issues are for either (GFM or kickstart)--what kind of and how extensive the record-keeping needs to be, both as it comes in and as it is used. I'm not sure it matters at all. If I recall you or I can give anyone $10,000 a year without any IRS involvement at all. That can be a part of an inheritance passing along scheme for the wealthy (assuming you'd actually trust your kids with $10,000 a year each). That's a big enough number to keep most Go Fund Me's out of IRS hands. Of course, I could be wrong. But we could try it out by sending me checks. I'll take one for the team.
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Post by factorychef on Jan 9, 2023 20:17:38 GMT -5
16,000 a year
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Post by John B on Jan 9, 2023 20:26:36 GMT -5
GoGundMe is typically treated as a gift, I believe; Kickstarter as revenue. Kickstarter is driven around funding for projects rather than asking for help. Kickstarter funders get something for funding; GoFundMe contributors do not.
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Post by aquaduct on Jan 9, 2023 20:43:18 GMT -5
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Post by John B on Jan 9, 2023 20:54:22 GMT -5
$17,000 in 2023! That's per giver per recipient, so you and your wife can give a child and his or her spouse a total of $68,000 annually without the need for filing a return (the filing of which does not mean you have to pay gift tax, as you and your wife each have $12.92 million exemption above and beyond the $17K per recipient to eat through first).
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Post by james on Jan 9, 2023 21:19:08 GMT -5
The tax considerations can be a bit complicated depending on the particular circumstances of the situation. There may be tax deductibility considerations for donors and in some situations, capital gains tax could be an issue for recipients. I glanced at a few articles and to be honest, they were a less than gripping read. The law is not exactly comprehensive and clear at times it seems.
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Post by John B on Jan 9, 2023 22:20:05 GMT -5
The tax considerations can be a bit complicated depending on the particular circumstances of the situation. There may be tax deductibility considerations for donors and in some situations, capital gains tax could be an issue for recipients. I glanced at a few articles and to be honest, they were a less than gripping read. The law is not exactly comprehensive and clear at times it seems. That's why there are Certified Public Accountants in the US, similar to a Chartered Accountants in the UK (although I think Chartered Accountants focus mainly on business tax). CPAs read those rules, interpret them, and apply them to their clients' situations. Usually when they comment on random fora they will note that what they write is only an opinion, and one should consult with his or her own tax advisor to apply the law in their specific situation. Sometimes they don't, though.
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Post by james on Jan 9, 2023 22:59:56 GMT -5
I did get a bit lost in the tax law weeds of a couple of certified accountant firms' websites. Some Internet rabbit holes are much less interesting to the lay person than others!
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Dub
Administrator
I'm gettin' so the past is the only thing I can remember.
Posts: 19,903
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Post by Dub on Jan 9, 2023 23:44:28 GMT -5
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Post by t-bob on Jan 10, 2023 0:10:22 GMT -5
I read the entire thread - “FoFundMe” GoFundMe and it sounds like a felony/misdemeanor
I have a few friends who are musicians and they get some money and they’re just lucky they didn’t get get slapped - IRS
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Post by PaulKay on Jan 10, 2023 10:57:36 GMT -5
Grifting has become enormously more profitable with the advent of electronic payment systems.
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