Raising money online for medical costs
Many families raise money online, on GoFundMe or similar sites, to help with medical bills, travel for treatment, or lost pay. It can bring real help. This guide shows how these fundraisers work, how to tell your story while keeping private details private, and a few things worth checking before the money arrives.
First, look at help that does not require going public
A fundraiser works best alongside other help, not instead of it. These often lower the bill itself, and none of them need you to share your story online:
- Ask the hospital about financial assistance (charity care), even after you get a bill.
- Check the bill and your EOB for mistakes and ask for an itemized bill.
- Appeal if your plan denied the claim.
- Ask for a payment plan you can afford.
- Look for drug-maker or nonprofit programs for medicine costs.
How an online fundraiser works
- The organizer
- The person who sets up the page and controls the money. It can be the patient or someone raising money for them. The FTC notes the organizer decides how the money is spent, so pick someone you trust.
- Who receives the money
- If a friend sets it up for you, GoFundMe says they can invite you to set up bank transfers so the money goes straight to you.
- Fees
- GoFundMe lists no fee to start, and a fee of 2.9% plus 30 cents taken from each donation in the U.S. Tips to GoFundMe are optional for donors. Other sites charge differently.
- Timing
- GoFundMe's terms say that if the person receiving the money does not finish the steps to withdraw it within 120 days of the first donation, it may refund donors. Set up withdrawals early.
- For donors
- Gifts to a person, rather than to a registered charity, are not tax deductible for the people who give.
Share the need, not the private details
People give when they understand the need. They do not need your records. Anything you post can be copied, saved, and shared, and it can be hard to take back. A good rule: write it so you would be comfortable if a stranger, an employer, or the patient years from now read it.
Check every photo before you post
- Hospital wristbands, name tags, and whiteboards in the room
- Screens and monitors, paperwork, and pill bottle labels
- House numbers, street signs, or car plates in the background
- Location tags added by your phone or the app
Use your own real photos. The FTC warns that scammers copy photos and stories from real fundraisers, so expect that strangers may see yours.
A simple way to write it
GoFundMe suggests explaining what the money is for, even with estimates. You can fill in this outline in your own words:
- Who: "Our friend Maria, a mother of two in our town..."
- What happened, in general terms: "...is being treated for a serious illness."
- What the money is for: "Travel to treatment, about $1,200. Costs insurance does not cover, about $3,000. Rent while she cannot work, about $2,400."
- Who manages it: "Her sister Ana set this up, and the money goes directly to Maria."
- How you will update people: "We will post updates and thank you as things move along."
Things to think about first
None of these are reasons not to fundraise. They are easier to handle before money arrives than after.
If the person gets SSI or Medicaid
Social Security counts cash from friends and relatives as income for SSI, and more countable income can mean a smaller SSI payment. But Social Security does not count money someone else pays directly toward your medical bills. Medicaid rules are set by each state.
What you can do
- Before you start, call Social Security or your state Medicaid office and ask how the money will be treated.
- Ask about having the fundraiser pay providers directly instead of giving you cash.
- A legal aid office or benefits counselor can help you plan.
Learn more
Taxes
The IRS says money given out of generosity, with nothing expected in return, may be a gift that is not taxable to the person helped. Money from an employer to an employee generally is taxable. You may get a Form 1099-K from the site or its payment company; the IRS says that alone does not mean you owe tax.
What you can do
- Keep a record of what was raised and how it was spent, for at least three years.
- Do not offer rewards or anything in return for donations.
- Ask a tax preparer or free tax help program if you are unsure.
Who controls the money
The organizer controls the money unless it is set up to go straight to the person being helped. Disagreements are much easier to avoid when everyone agrees on the plan up front.
What you can do
- Agree in writing on who withdraws the money and what it pays for.
- Have the patient, or the person legally acting for them, receive the money when possible.
- Keep receipts and share a simple summary with close supporters.
Permission and dignity
GoFundMe recommends asking the person first if they are comfortable with a fundraiser. Their story is theirs, even if you mean well.
What you can do
- Let them read the page, and every update, before it goes live.
- Ask which details and photos they are OK sharing.
- If the patient is a child, think about how they may feel when they are older.
Unexpected messages and copycat pages
Once your page is public, strangers may contact you. Some offer to "promote" your fundraiser for a fee. Others copy your photos and story to raise money for themselves.
What you can do
- Contact the platform only through its official website or app.
- Never share passwords, sign-in codes, or bank details by message.
- If you see a copy of your fundraiser, report it to the platform.
If the fundraiser raises less than you hoped
No fundraiser is guaranteed to reach its goal, and that is not a measure of how much people care. Keep working on the bill itself at the same time.
What you can do
- Keep the hospital financial assistance and payment plan conversations going.
- You can lower or raise the goal at any time.
Learn more
While it runs, and after
- Post updates in the same general terms as your story.
- Thank donors without naming them unless they agree.
- Keep receipts for what the money paid for.
- Close the fundraiser when the need is met, and say how the money helped.
This guide is general information. GoFundMe is named because it is widely used; AMME is not connected to it, and other sites have their own fees and rules. Check the site's current terms before you start.
Work out how much to ask for
Add up what the illness is really costing, not only the medical bills. The worksheet then adds platform fees and any tax, and shows what happens if you raise less or more than your goal. Nothing you type leaves this page.
Where can I go for help?
Free help is often close by: the member services number on your insurance card, the billing office for your provider, your state insurance department, and nonprofit patient advocates.
This is general education. For decisions about your own plan, taxes, or legal rights, check your plan documents or a qualified professional.
Sources
- Start a medical fundraiser on GoFundMe
- Common Fundraising Questions
- GoFundMe pricing
- GoFundMe Terms of Service
- Donating Through Crowdfunding and Fundraising Platforms
- IRS reminds taxpayers of important tax guidelines involving contributions and distributions from online crowdfunding (FS-2024-28)
- Understanding Supplemental Security Income: SSI income
- Financial assistance policies (FAPs)