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I have a client who created a non profit to collect Gofundme…

I have a client who...
I have a client who created a non profit to collect Gofundme donations for their daughter. Do they have to file taxes? I know normally gifts up to a certain amount are not taxable, but they received a 1099-INT from the bank. If they file, do they file just to claim the income from the 1099-INT? And what tax form should they file?
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3/14/2018
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
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Experience: 3+ decades of varied tax industry exp. Tax Biz owner
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Hello. Thank you for choosing this Q&A service for assistance. My name is***** will be assisting you. Does your clients have other income?

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Customer reply replied 4 months ago
they have income from their jobs, separate from the non profit. The 1099-INT was for the nonprofit account they set up for the gofundme. the bank gave them a $250 bonus for opening the account

Is the $250 the amount showing on the 1099-INT?

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Based on the following information, the answer is no, they do not need to report the amount. SEE BELOW:

-------------------------------

General Rule

By and large, interest is not subject to income tax for nonprofit corporations. For example, if a donor contributed corporate bonds to a charity, the charity could receive the interest from the bonds without recognizing taxable income.

REFERENCE SOURCE:

http://smallbusiness.chron.com/interest-income-subject-tax-nonprofit-corporation-70213.html

-----------------------------------

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