But Mukul Verma, a BRAF spokesman, said recipients of GoFundMe donations are taxed on the gift, because the company is for-profit. Nonprofit gifts are not taxed.
GoFundMe donations are also not exempt from overhead costs that many critics associate with large nonprofit organizations. GoFundMe automatically deducts a 5 percent fee from each donation. Additionally, WePay, the system that GoFundMe uses to process payments, takes another 2.9 percent plus 30 cents from every contribution made through the site. So nearly 8 percent from every donation made through GoFundMe is skimmed from the top before any money reaches its intended recipient.
Saturday, August 27, 2016
Look at these entrepreneurs innovating a recovery out of the goodness of their own hearts.