Go Fund Me - donating for tragic events

[kgcayenne]

I have been noticing that almost every human interest story that is run in local media has a GFM account association. I also know people who have tried to have compelling human interest stories run in local media where the public could benefit from extra awareness, but alas... "It's not news."

[Jonrox]

This article has a lot of good info about how the process should work. Don't you folks worry, this isn't GoFundMe's first rodeo.

https://www.theglobeandmail.com/canada/article-as-money-pours-into-gofundme-campaign-after-humboldt-broncos-bus-crash/

Here are a few excerpts from the article:

Rob Solomon, GoFundMe’s chief executive officer, told The Globe that the crowd-funding platform has a “VIP team” that works with campaign organizers to guide them through the process. The Humboldt Broncos campaign organizer, Sylvie Kellington, did not respond to interview requests on Monday, but Mr. Solomon said GoFundMe has been working closely with her and the Broncos.

A thorough plan for Humboldt is ”absolutely a work in progress,” Mr. Solomon said, with hopes that all parties will be in agreement within the next week or so.

First and foremost, Mr. Feinberg said, a fund administrator needs to be selected. “This is not rocket science, but it is emotional and it is very debilitating,” he said by phone. “Somebody has to be selected who’s willing to give pro-bono service to the community. Somebody ... who is so well-respected that the credibility of the program won’t be questioned.”

A protocol for how the funds will be distributed must then be drafted. Some protocols, such as the one drafted for the Las Vegas shooting, are publicly available online. The administrator should then host a series of town halls to get feedback from victims and community members, Mr. Feinberg said.

With roughly $6-million, he said, an administrator for the Humboldt fund could delegate three-quarters of the money pro-rata to the families of the deceased, with the remaining distributed to survivors based on the seriousness of their injury. Survivors with mental trauma but no physical injury may also be compensated.

Because of the speed required for the process - a fund should be open-and-shut in four or five months to get victims paid properly, Mr. Feinberg said - he warned that type of physical injury not be taken into account for survivors’ compensation. Instead, he said, length of time in hospital is a faster and fairer measure for compensation.

Mr. Solomon of GoFundMe said some funds may be released earlier on, to pay for funerals and accommodate families’ travel costs. The platform - which recently removed its 5-per-cent fee for personal campaigns in Canada - also donated $25,000 to the Broncos campaign.

[Silverstarqueen]

The Humboldt tragedy is so high profile it does not seem likely that anyone could shuffle away 9 M. for nefarious purposes. It will take months to sort out, and many survivors still don't know the extent of their recovery expenses. NINE people remain in hospital,some will be facing lifelong serious disability, presumedly they will have more costs than those who needed to bury their sons.The Good News is that those who have more extensive injury or disabilities will have some financial aid for recovery, rehab, and perhaps for future educational needs. Of course a lot of thought will have to go into that. I think originally families were hoping to cover immediate hotel and travel costs.

https://discoverhumboldt.com/local/bron ... undme-cash

[JayByrd]

We've mentioned the long-term, and in some cases, permanent recovery and disabilities these young men in the Humboldt incident will incur. And I have no problem with the raised funds going toward that.

But wouldn't insurance, carried either by the trucking company or whomever owns the bus, also cover them in this case? I know that's not instant cash, but it would eventually be paid out.

The young son of a friend of mine was badly injured in a car crash a decade or so ago. His injuries were severe and he will never fully recover. It took several years to sort out (including waiting to see the extent of his recovery) but ICBC did pay out, and the settlement was massive.

[one wheel]

Does the "Go Fund Me" money get Taxed & Lawyers fees applied before any settlement allotted is given to the accident victims ?
My friend helps a lady who was involved in an accident & ICBC gave her what sounded like a large settlement ? Well that is until the actual payout came along, first her Lawyer took his cut & then the Government added that money to her yearly earnings so her income tax was in the stratosphere. A big chunk of that settlement is gone.

I hope all the "Go Fund Me" money actually goes to helping everyone involved in this tragic accident.

[Bpeep]

My friend helps a lady who was involved in an accident & ICBC gave her what sounded like a large settlement ? Well that is until the actual payout came along, first her Lawyer took his cut & then the Government added that money to her yearly earnings so her income tax was in the stratosphere. A big chunk of that settlement is gone.

An icbc settlement is non taxable.

[Glacier]

Here's my view. Whenever there's a high profile tragedy, I close my wallet shut. The worse the tragedy, the tighter a shut my wallet. The reason being: the more something tugs at our heartstrings, the more people donate, and thus the less my donation will make a difference. I do not judge or condemn anyone at all for donating, but for me, I'd rather find someone who is not getting any media attention, and give to them instead.

It's the old Warren Buffet view of the world: sell when everyone is buy; buy when everyone is selling. Zag when everyone zigs; zig when everyone zags. It sounds heartless, but in the end it makes the world a better place (in my view).

P.S. Speaking of zig zags, do they still sell these things?

zigzag.jpg

[JayByrd]

Does the "Go Fund Me" money get Taxed & Lawyers fees applied before any settlement allotted is given to the accident victims ?
My friend helps a lady who was involved in an accident & ICBC gave her what sounded like a large settlement ? Well that is until the actual payout came along, first her Lawyer took his cut & then the Government added that money to her yearly earnings so her income tax was in the stratosphere. A big chunk of that settlement is gone.

GoFundMe donations in cases like this are generally not taxable. It's not ironclad, as CRA makes these decisions on a case-by-case basis, but in a situation like this, there is clearly no intention to do business, so any monies received would most likely be considered a gift for tax purposes. Crowdfunding campaigns to fund things like business startups or product development generally are taxable, but that's not what we're on about here.

I'm not sure why you think a lawyer would be involved. Crowdfunding is not the same as an insurance payout which, as Bpeep pointed out, are not taxable.

Your friend's friend's lawyer should have been clear about his/her percentage of the final settlement in that ICBC case. Despite the sizeable cut they receive, using a lawyer in such cases is still very often the best way to go. Having been through this once with my spouse, we would have had no idea how to proceed or how much to ask for on our own. The final settlement was 5x what ICBC's previous offer had been. Money well spent.

[Jonrox]

Does the "Go Fund Me" money get Taxed & Lawyers fees applied before any settlement allotted is given to the accident victims ?
My friend helps a lady who was involved in an accident & ICBC gave her what sounded like a large settlement ? Well that is until the actual payout came along, first her Lawyer took his cut & then the Government added that money to her yearly earnings so her income tax was in the stratosphere. A big chunk of that settlement is gone.

I hope all the "Go Fund Me" money actually goes to helping everyone involved in this tragic accident.

The legal firm assisting with the Broncos fund is doing the work pro bono.

Also as stated, the lady your friend helps did not pay income tax on her settlement.

[twofingers]

Apparently GFM is cheaper than tenant’s insurance.

[Silverstarqueen]

We've mentioned the long-term, and in some cases, permanent recovery and disabilities these young men in the Humboldt incident will incur. And I have no problem with the raised funds going toward that.

But wouldn't insurance, carried either by the trucking company or whomever owns the bus, also cover them in this case? I know that's not instant cash, but it would eventually be paid out.

The young son of a friend of mine was badly injured in a car crash a decade or so ago. His injuries were severe and he will never fully recover. It took several years to sort out (including waiting to see the extent of his recovery) but ICBC did pay out, and the settlement was massive.

I don't know which things auto insurance covers and which it does not, but I doubt it covers costs incurred by other family members to accompany to health clinics, hotel,meals, every single bit of equipment required,possibly for the rest of their lives. It often sounds like a lot initially, but there can be un-anticipated problems down the road when back fusions break down, or arthritis sets in.So you have to get lawyers involved, and that too becomes an added expense. Otherwise it would be simple: a bottomless fund for any related expense for the remainder of that person's life.