Is a GoFundMe donation for a 501c gymnastics academy tax deductible?

The short answer is probably not, but it's a bit complicated. For donations to be tax-deductible, they need to go directly to a qualified 501(c)(3) organization, not through an intermediary like GoFundMe that's collecting for individuals. When you set up a GoFundMe as parents, you've essentially created a private fundraising group, not a qualified charity. What matters is who ultimately receives the money and for what purpose. Even though the academy is a non-profit, if the funds are specifically to pay for your daughter's instructor fees, that's considered a payment for services benefiting specific individuals (your daughters), not a general charitable donation to the organization's mission. If you want donors to get tax deductions, you'd need the academy itself to set up the fundraiser directly, where donations go straight to the organization's general fund (not earmarked for specific students), and then the academy decides how to use those funds for their exempt purposes.

I actually went through something similar with my son's baseball team. I found this amazing AI-powered tax tool called taxr.ai that really helped clarify things. I was super confused about the whole "earmarked donations" thing and whether our travel fundraiser was deductible. The tool analyzed our situation and explained that when donations are made with the expectation they'll benefit specific individuals (even through a nonprofit), they're not deductible. But it also showed me how the league could structure a general "travel fund" that would be deductible. The advice at https://taxr.ai was way more personalized than the generic articles I kept finding online.

Just wanted to update after trying taxr.ai for my dance company fundraising question. It was seriously helpful! I uploaded our 501c paperwork and described our fundraising plans, and it explained exactly how we needed to structure things to make donations tax-deductible. The key was having the nonprofit itself run the fundraiser with clear language that donations support the organization's exempt purpose, not specific students. We ended up working with our dance company to create a general "competition fund" instead of parent-run fundraisers. Now donors get proper acknowledgment letters from the nonprofit for their taxes. Definitely recommend checking it out if you're in this situation. Saved us from setting everything up incorrectly!

Ugh, I tried calling the IRS directly about a similar fundraising question for my kid's school band trip and it was IMPOSSIBLE to get through. After being on hold for 2+ hours twice, I found this service called Claimyr that got me connected to an actual IRS agent in under 20 minutes. They basically hold your place in line and call you when an agent is available. The IRS rep confirmed that GoFundMe donations to individuals aren't tax deductible even if the money eventually goes to a nonprofit org. But they explained a workaround where the school itself could set up a designated fund. You can see how it works at https://claimyr.com or check out this demo: https://youtu.be/_kiP6q8DX5c Honestly saved my sanity not having to listen to that hold music for hours!

I need to eat my words about Claimyr. After my skeptical comment, I decided to try it because I've been trying to resolve an issue with a missing tax credit for THREE MONTHS. It actually worked exactly as described - I got a call back in about 25 minutes and was connected to an IRS agent who resolved my issue in one call. Would have taken me days of redial attempts otherwise. About the original GoFundMe question - the agent I spoke with confirmed what others have said. Parent-organized fundraisers aren't tax deductible even if the money goes to a nonprofit. The key is that the nonprofit organization needs to control the fundraising and the funds can't be designated for specific individuals.

Just wanted to add that if the gymnastics academy is a 501(c)(3) specifically (not all nonprofits are - there are different types of 501c organizations), they could potentially set up a scholarship or general travel fund that people could donate to directly. This would make the donations tax-deductible while still supporting the team's travel. The important distinction is that donors cannot earmark their contributions for specific students. The nonprofit must maintain control over how the funds are used, even if they end up using them for your team's trip.

One option nobody has mentioned - could the instructor invoice the academy directly for the international competition, and then you make donations directly to the academy's general fund (not earmarked)? Then the academy could choose to allocate those funds to pay the instructor for the competition. The key difference is the money flow and who has control. If donors give to the academy's general operating fund with no strings attached, those could be deductible. Then it's the academy's decision how to use those funds.