GoFundMe and tax

jooksavage

Our local community group is starting a GoFundMe to pay for some prefessional services around environmental surveys. Just checking: my understanding is that, unless we get registered for a tax exemption, funds collected from the GoFundMe are subject to tax. Is this correct? I want to make sure everything here is done above board.

Geuze

What tax?

If I contribute to my Residents Association, there is no tax involved.

Same goes for donations made to any charity or GAA club.

JVince

Tax exemption would be on profits of a registered business. Many "not for profits" and charities are registered businesses and they look for exemption of profit tax. (Corporation tax)

A small club / residents association would have no requirement to register as a business and as it doesn't make a "profit", and most likely the amount of money going through the accounts is small, there is nothing to be concerned about.

Ideally you would have a treasurer and possibly a member that is an accountant amongst the members who can advise you to confirm this.

I'm involved in a club that has about 70k to 80k "turnover" a year (dinners, lunches, sports events) and no requirement to account for tax.

jooksavage

https://www.boards.ie/discussion/comment/123225183#Comment_123225183

Appreciate it, thanks

wrangler

https://www.boards.ie/discussion/comment/123225964#Comment_123225964

As far as I know you can recieve as many gifts of €3000 as you can get in a year tax free so that'd cover a go fund me collection

Small gift exemption

The first €3,000 of the total value of all gifts from any one person in any calendar year is exempt. So, you could get a gift from several people in the same calendar year and the first €3,000 from each person is exempt from CAT.

You do not need to make a Capital Acquisitions Tax return to claim the small gift exemption for gifts under this limit.