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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16580
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I was reading about the ein association charitable donations

Customer Question

I was reading about the ein association for receiving charitable donations for medical expenses. Is that the best way to set things up even if we are going through a crowd funding site like go fund me? I understand that the recipient is not reposible to pay taxes on gifts of under $14K from a single donor, but what if you get multiple donations and the total over $14k. Is the recipient liable to pay taxes as if this is income?
Submitted: 1 year ago.
Category: Finance
Expert:  Megan C replied 1 year ago.

Thanks for your question --- if you are truly receiving gifts and are not providing a good or service for the payment then it is not taxable to you and you would not need to create an EIN. An EIN is for a business and you are not a business.

None will be taxable at all, regardless of how much is gifted. The funds cannot be used to earn a profit or else they will be taxable.

Please let me know if you need anything additional. If not, please rate positive.