Crowdfunding (asking for donations from others) may be an effective way to help pay for medical and other expenses. While crowdfunding can be done in person, it is most often done online. Individuals can create their own crowdfunding campaign, or create one to help someone else. Generally, crowdfunding campaigns include information about the person who will benefit from the fundraiser and why they need financial help. That personal story can help motivate people to give. Once a fundraiser has been created, it can be shared electronically (e.g., via email or on social media), to help increase the number of potential donors.
With the increased cost of cancer care, crowdfunding for medical expenses has become more popular. Funds raised through crowdfunding are classified as gifts by the IRS, so they typically are not considered taxable income and are considered “unrestricted” funds. This means that the funds raised can be used for any expenses an individual might have.