Go Fund Me - donating for tragic events

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TreeGuy
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Re: Go Fund Me - donating for tragic events

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The monies are not tax exempt, so whoever gets the money will have to claim it on their income tax. If the money was funneled through a charity it would be tax free.
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JayByrd
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Re: Go Fund Me - donating for tragic events

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Bpeep wrote:I'm curious about the disbursement of funds- especially when it gets into the millions of dollars.
There doesnt appear to be any regulatory body governing the integrity of it.
Nor does there appear to be any guideline to disburse it in any equitable fashion when its going to numerous recipients.

Remember someone who a few winters ago rented a prominent piece of public land from the city under the guise of disbursing the proceeds amongst various people struck by calamity. Not one of them received a dime and there were no repercussions.
Consider the ramifications when someone of a similar moral caliber has 7 million dollars at their disposal.



I've had the same concern. There is now a massive amount of money in this Humboldt Broncos fund, and dozens of potential recipients. Even someone acting in good faith now has a huge job on their hands.

Presumably, the short-term needs of the affected families are the top priority. Time off work, accommodations while they are with their hospitalized child, and funeral arrangements. Aside from that though, I'm not sure what this money would get spent on.
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Re: Go Fund Me - donating for tragic events

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Bpeep wrote:I'm curious about the disbursement of funds- especially when it gets into the millions of dollars.
There doesnt appear to be any regulatory body governing the integrity of it.
Nor does there appear to be any guideline to disburse it in any equitable fashion when its going to numerous recipients.

Remember someone who a few winters ago rented a prominent piece of public land from the city under the guise of disbursing the proceeds amongst various people struck by calamity. Not one of them received a dime and there were no repercussions.
Consider the ramifications when someone of a similar moral caliber has 7 million dollars at their disposal.


Its too bad that fundraising event wasn’t investigated.

I’m really curious how this GoFundMe will play out. Insurance will cover a lot of the costs and its not like people pay for hospital care out of pocket in canada. Im sure there will be additional costs for all of the families involved but still, 8 million divided by 30 families is $266k each.
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Re: Go Fund Me - donating for tragic events

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TreeGuy wrote:The monies are not tax exempt, so whoever gets the money will have to claim it on their income tax. If the money was funneled through a charity it would be tax free.


I thought that money raised as a donation or gift isnt taxed. Crowdfunding is only taxable if its raised as part of a business. A start up or expansion, etc.

Im not 100% sure though.
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TreeGuy
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Re: Go Fund Me - donating for tragic events

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TreeGuy wrote:The monies are not tax exempt, so whoever gets the money will have to claim it on their income tax. If the money was funneled through a charity it would be tax free.


Bunnyhop wrote:I thought that money raised as a donation or gift isnt taxed. Crowdfunding is only taxable if its raised as part of a business. A start up or expansion, etc.

Im not 100% sure though.


My bad,

Taxation of Donation-based crowdfunding
On this model, the fundraiser solicits donations for altruistic purposes. For instance, one might raise funds using a GoFundMe account so that a sick child can attend an Ariana Grande concert or to aid a family facing eviction.

Fundraisers using the donation-based model probably do not need to report the funds that they receive as income. These funds would likely constitute a gift since,presumably, those contributing money to the specified cause are doing so without receiving anything valuable in exchange.A recipient of a gift is not required to report that gift as taxable income unless it stems from an employer. Gifts from an employer will typically constitute a taxable employee benefit if the gift exceeds a certain value.

Donors, on the other hand, should not expect a donation tax credit for their contributions unless they are donating to a crowdfunding campaign established by a registered Canadian charity.
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oneh2obabe
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Re: Go Fund Me - donating for tragic events

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Bunnyhop wrote:Its too bad that fundraising event wasn’t investigated.

I’m really curious how this GoFundMe will play out. With the eyes of Canada and the world following, I doubt the woman who started the fund will try to abscond with any of the funds.

Insurance will cover a lot of the costs and its not like people pay for hospital care out of pocket in canada. Im sure there will be additional costs for all of the families involved but still, 8 million divided by 30 families is $266k each.

Why would this GoFundMe page be investigated? The lady who started it did so to help the families impacted by the horrific accident that claimed many young people.

While $266K sounds like a lot of money (and that is a lowball figure now the fund has surpassed the $10M mark) it's not when you take into account a whole family unit impacted by this accident. Provincial health plans don't cover everything. Things like long-term care, either home-based or in a centre, probably won't be 100% covered. Prosthetics aren't covered by most provincial health plans and they don't come cheap. A hand can cost upwards to $50K depending on the best fit for the individuals need. The full cost of wheelchairs usually isn't covered by most provincial health plans.

Counselling for the family can range from a few months to years. Travelling from their town to a town or city with the facilities needed costs money - not only in fuel but in time lost from work or looking after the rest of the family for the parent.
Last edited by oneh2obabe on Apr 12th, 2018, 8:43 pm, edited 1 time in total.
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Re: Go Fund Me - donating for tragic events

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It will be a challenging task to determine how much of this money to give to each of the survivors.
They are all similar age. Some may be affected with considerable injuries that may demand greater care costs and hinder earnings more and longer than the injuries of others.
I don't think just dividing the # of families into the total amount is the correct way to disburse it.
Nor do I feel that someone without qualifications should make the decision to give who what.
There's a lot of money involved, and in reality very few people may be recipient of it.
Regardless of the emotion involved, I can see any desicions if arbitrarily applied by a layperson to be quickly challenged in a court. And it should be. I don't think the principals of the go fund me site are qualified to equitably distribute this much money in these circumstances.
The circumstances and associated costs of each victim, both current and future, differ from the rest.
I do hope this is dealt with responsibly and not just "split equally".
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oneh2obabe
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Re: Go Fund Me - donating for tragic events

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^^^Exactly. I can see funds been given to families to help with funeral costs and living expenses for a month or two. Then medical specialists need to be consulted to determine the severity of injuries received, length of rehabiliation, specialized equipment required if any. Once that's been established, you can involve professionals to establish a trust based on an amount needed to ensure proper care for each individual so funds are available on an ongoing basis to cover expenses on a daily, weekly or monthly basis and for extraordinary expenses like a wheelchair, prosthetic, etc.
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Re: Go Fund Me - donating for tragic events

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I was referring to the fundraiser event in the quote - it’s long done and no money went to the stated recipients.

I really hope that all of the families receive enough financial support to cover all their needs. It’s a terrible tragedy that will be nearly impossible to recover from.
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Re: Go Fund Me - donating for tragic events

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There's also the insurance payouts to consider when funds are disbursed.
When it comes to the financial implications, the whole scenario is really incredibly complex with many mitigating factors.
I do hope it's all ultimatly dealt with in a way that leaves no ambiguity for anyone.

One thing I don't understand, with a go fund me fundraiser, if a fundraiser has a goal, why does it continue well past that?
If its able to, then why have a goal at all?
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Re: Go Fund Me - donating for tragic events

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Once the original goal has been reached the person who started the fund should 1) increase the goal amount with an update as to why the goal has been increased or 2) stop donations from being accepted - this will allow the main page to be viewable showing total donated with an update as to why no more donations are required.
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Re: Go Fund Me - donating for tragic events

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Essentially its a telethon without the telephone. Setting a goal is a subliminal challenge to people. Here's the target, can you hit it? That gets the ball rolling and it's human nature to enjoy watching it grow and grow. Charity knows no boundaries, especially a worthy cause. There is no requirement to change the goal as it is surpassed. It can simply be left to run it's course as donations dictate.

I have no doubts the Go Fund Me officials working with the organizer and the Humboldt Broncos organization are perfectly capable of distributing the money equitably among those affected. They have seen these numbers before.

Anyone notice that the GFM staff donated $25,000? Nice!
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Re: Go Fund Me - donating for tragic events

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generalposter wrote:
I have no doubts the Go Fund Me officials working with the organizer and the Humboldt Broncos organization are perfectly capable of distributing the money equitably among those affected.


I have to disagree.
Anyone can disburse the funds.
There's nothing easier to do than give away money.

I've known many very experienced insurance adjusters and litigators who've struggled with determining what is appropriate in extreme situations.
Courts take a considerable amount of facts into consideration to determine.
This isn't a few tens of thousands being disbursed to one individual. As generous as the donations are, the amount of money, the number of recipients, and the huge number of factors of injuries, future needs, future earnings potential lost, etc etc all need to be considered.There's dozens of individuals, just as many families, half that many deaths, insurances from various providers, countless injuries to various degrees, the potential recoveries etc. It's considerable what needs to be recognized for equitable disbursements.
Imo its well into being incredibly complex.

I really don't think that a hockey club or someone running a website for a profit are in any way qualified to equitably disburse this amounts of monies to the various needs involved.
And I really doubt the Broncos have ever given away this much money. And certainly not in these circumstances.
I really don't think anyone at that website or that hockey club are capable of guaging the difference in current and future needs. There likely isn't one individual involved who is even remotely qualified to with any confidence.
This isn't a go fund me raising a few hundred to help someone out.

There's over ten million dollars on the table, and many many factors to consider.

I'd like to see a court decide.
Anything less is speculative and unfair at best.
There's provisions available in society to ensure this is done right. At least as right as possible.
The circumstances and the amount of money involved dictate that it should be addressed as responsibly as can be.
No doubt the recipients and the donaters would all agree.

Imo.
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Re: Go Fund Me - donating for tragic events

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Bpeep wrote:
generalposter wrote:
I have no doubts the Go Fund Me officials working with the organizer and the Humboldt Broncos organization are perfectly capable of distributing the money equitably among those affected.


I have to disagree.
Anyone can disburse the funds.
There's nothing easier to do than give away money.

I've known many very experienced insurance adjusters and litigators who've struggled with determining what is appropriate in extreme situations.
Courts take a considerable amount of facts into consideration to determine.
This isn't a few tens of thousands being disbursed to one individual. As generous as the donations are, the amount of money, the number of recipients, and the huge number of factors of injuries, future needs, future earnings potential lost, etc etc all need to be considered.There's dozens of individuals, just as many families, half that many deaths, insurances from various providers, countless injuries to various degrees, the potential recoveries etc. It's considerable what needs to be recognized for equitable disbursements.
Imo its well into being incredibly complex.

I really don't think that a hockey club or someone running a website for a profit are in any way qualified to equitably disburse this amounts of monies to the various needs involved.
And I really doubt the Broncos have ever given away this much money. And certainly not in these circumstances.
I really don't think anyone at that website or that hockey club are capable of guaging the difference in current and future needs. There likely isn't one individual involved who is even remotely qualified to with any confidence.
This isn't a go fund me raising a few hundred to help someone out.

There's over ten million dollars on the table, and many many factors to consider.

I'd like to see a court decide.
Anything less is speculative and unfair at best.
There's provisions available in society to ensure this is done right. At least as right as possible.
The circumstances and the amount of money involved dictate that it should be addressed as responsibly as can be.
No doubt the recipients and the donaters would all agree.

Imo.


You’ve brought up some very good points. There’s a lot of money at stake and people donated in good faith.

We’ve seen other fundraisers (like the one you mentioned earlier) that ended with unanswered questions and a lot less money involved.

Personally I’m too cynical to turn my hard earned money over to a third party in hopes it will get where I intended for it to go. I donate directly or I don’t donate at all.
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Re: Go Fund Me - donating for tragic events

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know somebody who had a go fundme created for them because their young child had cancer...$85,000 was raised...the fund was in the parent's name...the parent took the money and bought themselves a brand new truck..the treatments for the child are in Vancouver and will last about 3 yrs...the truck is a pig on gas, so it was not bought for the purpose of transporting this child for treatments..enough money was raised so the child wouldn't have to endure 8 hrs of driving time for treatments, it was suppose (or assumed) to pay for plane tickets and then the rest put away for this child's education...

the money is long gone, the poor child still has to travel 8 hrs of driving time for treatments and the parent is proud as peach about his new truck..

yes we donated a few hundred dollars...makes me sick to know that we helped buy this "parent" a brand new expensive truck..never would have donated a dime if we knew how this was the way the money would be spent..

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