Can You Deduct Facebook Donations from Your Taxes?

Taxes

Facebook fundraisers have become a popular, easy way to raise money for worthy causes.

With the social media platform boasting an estimated 2.74 billion monthly users, people have been able to solicit support for organizations that support causes near and dear to their hearts. Facebook even takes the step to prompt users to set up fundraisers for their birthdays.

With birthday fundraisers posted on their Facebook page and their friends’ news feeds, it becomes a snap to raise money for charity. The ease of use on both the fundraiser and the donor’s end likely ensures that many are compelled to make charitable donations when they otherwise might not have.

People can also set up fundraisers for personal causes that can cover anything from raising money for medical expenses to supporting a political goal.

Users have generated billions for nonprofit groups by donating money using Facebook, with millions more raised every day.

Just because you are making the donation through Facebook does not mean it is not tax-deductible. Although tax laws vary from region to region, there is a good chance your latest Facebook donation is eligible to be deducted from your next income tax bill.

Here are some frequently asked questions about Facebook fundraiser donations, tax deductions, and how they relate to your tax return.

Can You Deduct Facebook Donations from Your Taxes?

Some Facebook donations are tax-deductible. Deductible donations need to be made to a nonprofit organization.

Example: Sarah posts a birthday fundraiser to raise money for a local animal shelter. The shelter is registered as a charitable organization, so donations made to it are tax-deductible.

How Do I Find Out if My Facebook Deduction is Tax Deductible?

When you donate through your Facebook account, you will be sent a confirmation email. This confirmation should show that you have made a charitable contribution.

If you are still uncertain, contact the nonprofit and inquire as to whether cash donations to their organization are considered tax-deductible.

You can also check ProPublica’s nonprofit database to see how the IRS classifies thousands of nonprofit organizations.

In short, if the IRS would allow you to deduct an off-Facebook donation from your taxes, a donation through Facebook should be tax-deductible.

Are Donations to Personal Fundraisers on Facebook Tax Deductible?

No. Donations to personal fundraisers on Facebook will not qualify as a charitable deduction on your taxes.

Example: Curtis starts a personal fundraiser for a friend who lost work during the pandemic. The money raised is to go directly to his friend, not a charitable nonprofit, so donors can’t deduct their contributions from their taxes.

Are Donations to Political Causes on Facebook Tax Deductible?

No. Donations to political causes on Facebook are not tax-deductible.

How Much Does Facebook Take from Donations?

Facebook covers payment processing fees for charitable organizations. For fundraising where donations are not tax-deductible, Facebook charges 2.6 percent plus $0.30.

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