Are donations to an individual tax deductible?
The short answer is ‘no’ but there can be exceptions.
When it comes to personal causes and the question of whether donations to an individual are tax deductible, the short answer is ‘no’. Donations are considered gifts unless they’re made to a charitable organisation endorsed as a Deductible Gift Recipient (DGR). Only then do donations qualify as deductible. That being said, mycause has a DGR entity that can help individuals with tax implications in certain circumstances.
Turning gifts into tax deductibles
Most people are pleased to donate generously to individual causes despite their donations not being tax deductible. However, in cases where fundraisers hope for larger donations from companies (who require tax receipts) or foundations (who only donate to tax deductible causes), they can apply for fundraising through mycause’s registered charity, Help a Friend in Need (HAFIN). Raising money for an individual through HAFIN means donors can claim tax deductions in the same way as they would with a registered charity.
Donations to individuals count whatever the tax status
People are always looking for a way to help. Donations are a tangible way to help a friend or family member in need. And so even without the tax break, they’re still compelled to help causes they feel strongly about. mycause gives people the power to change someone’s life in a meaningful way. So, don’t delay. Jump on to mycause and start your campaign today.