By LawInspectsNo, it is not illegal to start a GoFundMe for yourself, but there are some cases when it becomes illegal, and you should be aware of those scenarios. Like, to put it in the shortest way possible, you see, it is all about honesty, and if you miss out on that, you might face some legal consequences. Let’s talk about that a bit more.
What the Law Says About Starting a GoFundMe for Yourself
Starting a GoFundMe fundraiser for yourself is perfectly legal. One important detail, though: honesty. GoFundMe requires you to clearly state who you are, why you are raising funds, and how you intend to use them. You will also need to provide only the legitimate contact information.
Certain states in the United States could have their own respective laws pertaining to online fundraising. So in this case, setting up a campaign is not illegal; however, one could land in trouble by providing false information or misleading someone. A real and truthful campaign is all you need to worry about, you know, there is no problem with the law in such a case.
When It Becomes Illegal
Only when someone lies or fabricates a story does this become a legal issue. How? You see, for example, you know, wanting money for a cancer treatment when you aren’t sick at all, that’s a fraud right there. Or saying, fundraising for someone in need but putting that money in your own pocket, yup, fraud again.
In this country, such behavior can lead to some really serious consequences, including felony charges depending on how much money is involved. Go ahead with your fundraiser, but remember that the truth is your best friend. Otherwise, there’s no reason to take any chances.
What an Actual “Scam” Looks Like on GoFundMe
There are always fake identities or outright lies involved in scams, like, you know, they might claim to be raising money for one thing and then spend it on something else. GoFundMe is very vigilant about monitoring these scams. Should they suspect anything, they shut them down, and in some instances, have even seen them working hand-in-hand with the police on these matters.
Clearing Up Common Myths
There’s a common belief that you can’t raise money for yourself on GoFundMe. That’s not true. You can.
There are folks who suppose no donations ever come through, or that the platform isn’t safe to use. Well, GoFundMe has safety checks, and it even offers donor protection in cases where something doesn’t quite feel right. So yes, donations do come through, more so when you tell a good story with truth and reliability.
It’s not just about medical emergencies; people raise money for rent, college, car repairs, or even small businesses. It’s more common than you might think.
How GoFundMe Affects Taxes and Benefits
Usually, donations on GoFundMe are not subject to tax because they are treated as gifts given in a personal capacity. But if someone is affected by the government aid programs such as SSI, SNAP or Medicaid, heavy donations could be detrimental to their benefits. These are programs which have frequent bank balance checks to see if the applicant may still be eligible for benefits.