How to run a fundraiser people trust
Donors give to people and causes they believe in, and they give again when they can see what happened to their money. Most of that trust is built by decisions you make before the first donation arrives.
Set a specific goal and explain the use of funds
Name an exact amount and break it into parts: for example, an $18,000 goal made up of $12,000 for three months of rent, $4,500 for medical bills and $1,500 for platform and processing fees. A specific budget persuades better than a round number and gives you something to report against later.
Set a deadline, and say in advance what will happen if you raise more than the goal or fall short. Putting that plan on the campaign page prevents arguments later.
Choose a format
The right format depends on who your supporters are and how much time you have to organize.
Confirm any match in writing before you announce it, including its cap and deadline. Many employer matching programs cover only gifts to registered charities, so check before promoting one for a personal fundraiser.
- Crowdfunding platform: one online page that anyone can share, suited to urgent personal or community needs.
- Peer-to-peer: supporters create their own pages under one campaign and ask their own networks to give.
- Event: a dinner, run or auction that builds community but carries upfront costs.
- Matching-gift campaign: a lead donor or employer pledges to match gifts up to a set amount, which encourages others to give.
Raising money for someone else
Get the beneficiary’s permission before you post their story or photos, and agree on what you will share. Decide who will control the money: ideally the funds go straight to the beneficiary or to an account in their name, not to the organizer’s personal account. If you must hold the money yourself, write down the arrangement and document every transfer to the beneficiary.
Large gifts can affect a recipient’s eligibility for means-tested benefits such as SSI or Medicaid. Check before money arrives, since a special needs trust or an ABLE account can sometimes hold funds without affecting those benefits.
Understand fees and optional tips
Platforms make money in different ways. Some charge a platform fee on each donation, most deduct payment processing fees, and some invite donors to add a voluntary tip for the platform at checkout, sometimes with an amount already selected.
Compare how much of a sample $100 donation would reach the beneficiary on each platform you are considering. Tell donors plainly that any tip is optional and goes to the platform, not to the cause. Also check how quickly you can withdraw funds and what identity checks the platform requires first.
Be transparent from start to finish
Report progress regularly: milestones reached, money withdrawn, bills paid and any change of plans. Share receipts or invoices where privacy allows, and keep campaign money in a separate account so every dollar can be traced.
If you are raising money for a group or organization, have two people review deposits and spending. When the campaign ends, publish a final accounting that matches the total raised against what was spent. If something goes wrong, say so in an update quickly, because silence is what turns a mistake into a scandal.
Know the tax and legal basics
Only gifts to qualified charitable organizations are tax-deductible. Money given to individuals through crowdfunding generally isn’t deductible for donors, however worthy the cause, so never describe a personal fundraiser as tax-deductible.
Gifts given out of generosity are generally not taxable income to the recipient, but money raised in exchange for rewards, products or services, or for a business, can be. A Form 1099-K from a payment platform doesn’t by itself make gifts taxable, so keep records showing what each payment was.
Many states require charities to register before soliciting donations from their residents, and some also regulate paid fundraisers. Raffles are another trap: many states treat them as gambling and allow them only for qualifying nonprofits, often with a permit.
Thank donors and close the loop
Thank every donor promptly and personally, even for small gifts. A short note that names what the money made possible, such as a paid hospital bill or a repaired roof, does more than a generic message.
If you are raising money on behalf of a charity, let the charity issue the formal receipts donors need for tax purposes. After the campaign, a final update showing the result gives supporters a reason to say yes the next time you ask.