Part 2 of a two-part series.
As covid-19 has shuttered or slowed businesses and the uprising for human rights in the wake of George Floyd’s murder has prompted an outpouring of mutual aid in cities across the US, many people are using crowdfunding who have never used it before.
Just as recipients often wonder if the support they receive is taxable (see Part 1 of this series), givers sometimes wonder about the tax implications of their contributions. The short answer is: there usually aren’t any—so don’t be afraid to give!
Before we go any further, please consider supporting the Du Nord Recovery Fund, which will ensure that POC-owned businesses on Lake Street in Minneapolis will be rebuilt.
In the rare event that giving affects your taxation, what that effect is really depends on what kind of transaction you’re participating in.
A bean-counter counting literal beans: Esther Cervantes is an accounting and tax professional with 15 years experience supporting small businesses, worker-owned cooperatives, social enterprises, non-profits, and collective housing.
