GoFundMe for Funeral Expenses: How to Set One Up and What the IRS Says

The Basics: Setting Up a Funeral GoFundMe

The median cost of an adult funeral with viewing and burial was $8,300 in the NFDA's 2023 study; that figure excludes the cemetery plot, headstone, and flowers. For families caught off guard by a sudden death, a GoFundMe campaign can close the gap between what they have and what they owe.

GoFundMe charges no platform fee. You'll pay 2.9% + $0.30 per donation in credit card processing fees. The total depends on the number of donations; at 50 donations averaging $100, fees total about $160 and the family receives about $4,840.

Here's how to set one up:

1. Create the campaign on GoFundMe.com. Use a clear, specific title: "Memorial Fund for [Name]" or "Funeral Expenses for [Name]." Avoid vague titles
2. Set a realistic goal. Itemize the costs you're trying to cover — funeral home services, burial plot, casket, flowers, travel for family members. Being specific builds trust and increases donations
3. Add a photo and a short story. One or two paragraphs about who the person was and why the funds are needed. Keep it honest and direct
4. Choose the beneficiary. The campaign organizer and the beneficiary can be different people. The funds are paid out to the beneficiary's bank account
5. Share the link. Add it to the obituary, text it to family, and post on social media. Most funeral GoFundMe campaigns raise the majority of their funds in the first 48 to 72 hours

The Tax Question Everyone Asks

Is GoFundMe money taxable for funerals?

In almost all cases, no. The IRS classifies funeral crowdfunding contributions as personal gifts — voluntary transfers motivated by generosity with no goods or services exchanged. Personal gifts are not taxable income to the recipient under current US tax law.

However, there are two things you need to understand:

The 1099-K Form

For third-party settlement organizations, the current IRS reporting threshold for transactions involving goods or services is more than $20,000 and more than 200 transactions in a calendar year. Personal gifts from family and friends should not be reported on Form 1099-K. GoFundMe says it does not issue tax documents or report donations to personal fundraisers as earned income.

Getting a 1099-K does not by itself mean you owe taxes. If you receive one for personal gifts, contact the issuer about a correction and keep records showing the campaign's purpose and where the money went.

To protect yourself if the IRS asks questions, keep these records for at least three years:

• Screenshot of the campaign page showing its purpose
• A log of how the funds were spent (funeral home invoices, cemetery receipts)
• Proof that the funds went to the intended beneficiary if you're the organizer and they're a different person

The Gift Tax Threshold

If you're the campaign organizer and you collect the funds in your own bank account before transferring them to the family, the IRS could theoretically classify that transfer as a personal gift from you. If the transfer exceeds $19,000 (the 2026 annual gift tax exclusion per recipient), you may need to file an informational gift tax return (Form 709).

The practical way to avoid this: make the family member the direct beneficiary on the GoFundMe account so funds go straight to their bank. If that's not possible, keep clear records showing you were acting as a pass-through, not making a personal gift.

Donors Cannot Deduct These Contributions

This is a common misconception. Contributions to a personal GoFundMe campaign are not tax-deductible for the donors because the funds go to a person, not a qualified charity. For donations that may qualify for a deduction, set up a nonprofit fundraiser benefiting a verified 501(c)(3) organization; donors still need to meet IRS requirements.

For a funeral campaign supporting a family directly, there's no workaround — it's a personal gift, and gifts are non-deductible.

Alternatives to GoFundMe

For personal campaigns, contributions are generally treated as gifts: they are usually not taxable income to the recipient and are not deductible for donors.

One Practical Tip

Write the campaign page before you need it. If someone in your family is terminally ill or elderly, having the campaign text pre-written (even if you never publish it) saves you from trying to compose a coherent, emotional appeal during the worst hours of your life. You can always adjust the details later.

The Flowers, Donations & Memorial Contributions Guide includes a Platform Fee Calculator, a Donation Tracking Spreadsheet, and step-by-step instructions for setting up memorial bank accounts — all designed for someone operating under grief-level cognitive load.