Resources
Start with official sources before relying on any secondhand summary, including this one.
- IRS — Tax Exempt Organization Search — Confirm whether an organization is a registered 501(c)(3) nonprofit in good standing.
- IRS — Frequently Asked Questions on Gift Taxes — General federal guidance on how gifts are treated for tax purposes.
- Consumer Financial Protection Bureau — Consumer Complaint Database — Search for complaint patterns involving a specific company, including payment platforms.
- FTC — Charity Scams — Federal Trade Commission guidance on spotting and avoiding charity and donation scams.
Rules, thresholds and providers described here are those of the United States.
Dates that actually matter
A few timing points that change the outcome of a campaign, especially around taxes and matching.
| When | What happens |
|---|---|
| December 31 | The deadline for a donation to count toward the current US tax year for the donor's own itemized deduction, if they itemize. |
| 60–365 days after a donation (varies by employer) | The typical window most employer matching-gift programs allow for submitting a match request — check your specific employer's deadline. |
| End of your employer's benefits year | A useful time to check whether you have an unused matching-gift allowance for the year before it resets. |
| Tax filing deadline (mid-April, typically) | The point by which an organizer should have records gathered to answer any question about a campaign's actual purpose and use of funds. |
Always confirm current dates with the official source — they move.
Checklists you can work through
Before you launch a campaign
- Confirm your goal type: personal, nonprofit, or creative/product
- Compare at least two platforms' actual fee structures
- Estimate your realistic goal from your close and wider network
- Write a specific, factual story
- Plan your first-week outreach and milestone updates
- Set up a simple record-keeping system
Before you donate to a campaign
- Confirm a specific, verifiable beneficiary
- Check for a clear, specific stated use of funds
- Look for visible updates since launch
- For a nonprofit beneficiary, confirm 501(c)(3) status directly
- Give through the platform itself, not an outside payment method
Common mistakes worth avoiding
Setting a goal without accounting for fees
Reduce your target need by the platform's actual fee structure before setting the public goal, so what you actually need is covered after fees.
Launching with no first-week outreach plan
List and personally message your closest contacts before or immediately after launch, rather than relying on one public post to reach everyone.
Going silent after the initial post
Plan updates at each milestone plus at least one mid-campaign update regardless, since updates are what give people a reason to reshare.
Choosing a platform before knowing your goal type
Match the platform to whether your campaign is personal, creative/product, or nonprofit — the fee structures and tools differ meaningfully.
Not checking for employer donation matching
Prompt donors directly to check if their employer matches gifts to a registered nonprofit — a large share of eligible matches go unclaimed simply because nobody asked.
Assuming a 1099-K means the money is taxable
Treat a 1099-K as a reporting trigger, not a tax determination, and keep records showing the campaign's actual purpose.
Closing the record-keeping loop only if something goes wrong
Set up a simple spending log from day one, whether or not you ever expect to need it — it's far easier to maintain than to reconstruct later.
Giving to a campaign based on emotional appeal alone
Check for a specific, verifiable beneficiary, a clear use of funds, and visible updates before donating, regardless of how compelling the story reads.
Glossary
The words that get used as if everyone already knows them.
Platform fee
A percentage of funds raised that a crowdfunding platform charges to host and operate the campaign.
Payment processing fee
A separate charge, usually a percentage plus a small flat amount, covering the cost of processing each card or bank transaction.
All-or-nothing funding
A funding model where donor cards are only charged, and funds only collected, if the campaign's goal is met by its deadline.
Flexible funding
A funding model where the organizer keeps whatever amount was raised, regardless of whether the goal was met.
501(c)(3)
The US tax code section under which most public charities are recognized as tax-exempt nonprofit organizations.
Form 1099-K
A tax form payment processors send when an account's transaction totals cross certain reporting thresholds, regardless of whether the funds are taxable.
Matching gift
A donation an employer makes to match an employee's personal gift to an eligible nonprofit, commonly dollar-for-dollar up to an annual limit.
Recurring giving
A donation model where a donor commits to a smaller gift on a repeating schedule, usually monthly, rather than one lump sum.
Organizer
The person who creates and manages a crowdfunding campaign, who may or may not be the beneficiary themselves.
Beneficiary
The person or organization a crowdfunding campaign's funds are ultimately intended to help.
Donor-advised fund
An account held by a sponsoring charitable organization that lets a donor contribute, receive a tax deduction, and recommend grants to charities over time.
Charitable solicitation registration
A state-level requirement in some states for organizations raising funds above certain thresholds from that state's residents.