How Taxes Work on Funraiser

Funraiser is a fundraising marketplace that helps organizers collect funds through campaigns built around products and experiences. Because campaigns on Funraiser can be run by individuals, teams, schools, and registered nonprofits, tax treatment varies by campaign type.

Who Receives the Funds?

Funraiser acts as a payment agent, not the recipient of campaign funds.

• Campaign organizers are the recipients of campaign proceeds
• Funraiser earns a platform service fee
• Product providers receive payment for goods sold
• Funraiser does not own or control campaign proceeds

Campaigns Run by Individuals

Funds raised by individuals may be considered gifts, income, or other taxable receipts depending on the facts and circumstances of the campaign.

Funraiser does not determine whether funds are taxable. Campaign organizers are responsible for understanding and complying with their own tax obligations.

Campaigns Run by Organizations or Teams

Campaigns run by organizations, teams, or businesses may be subject to income tax, sales or use tax, or other reporting requirements depending on the entity and jurisdiction.

Organizers are responsible for compliance.

501(c)(3) Charitable Campaigns

If a campaign is run by a verified 501(c)(3) organization:

• The charitable portion of a purchase may be tax-deductible
• Donations are made directly to the nonprofit
• Donors receive a charitable receipt when eligible

Only campaigns operated by verified 501(c)(3) organizations qualify for charitable deductions.

IRS Reporting

Funraiser partners with payment processors to facilitate payouts.

• Payment processors may issue Form 1099-K to campaign organizers when required by law
• Forms are issued directly to the campaign recipient
• Funraiser reports only its platform service fees as revenue