GiveForward is a convenient way to help a loved one in need by making a contribution to their out-of-pocket medical expenses. The organization assigns personalized fundraising coaches to each new user, so fundraisers can avoid simple mistakes that often make traditional grassroots fundraisers ineffective in reaching their goals. Two questions help further explain the approach.
Q. What percentage of donations go to the individual conducting the fundraiser?
A. 93% goes to the beneficiary. Give Forward receives the remaining 7% for its services, which includes credit card processing. This is on the low end of the spectrum compared to other online giving sites.
Q. What are the legal and tax implications of the gifts for donors and recipients?
A. For recipients, donations are treated as gifts. They are not ordinary taxable income unless the beneficiary receives a gift from one individual for more than $13,000.
For donors, donations are not tax-deductible, since under IRS regulations, recipients are not official non-profit organizations.