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.