The Tax Impact of Crowdfunding

The Tax Impact of Crowdfunding - Susan Moussi{3 minutes to read} Crowdfunding is simply any method by which money is raised, for any reason, from a crowd. Back in the pre-computer days, the terminology would have been “fundraiser.” It’s only the means by which the funds are raised that has changed, not necessarily that it hasn’t existed before.

The tax treatment of a transaction often depends on the intent of the donor. Most online crowdfunding campaigns are donation based. Funds are raised to help some charitable cause. It is also the most misunderstood. Continue reading