as we continue more and more people overwhelmed by unexpected medical and other expenses are turning to crowdfunding to raise quick cash and while these campaigns can provide a financial lifeline to those in need they also pose potential problems here's what you need to know before you start or even contribute to a crowdfunding campaign Jamila Gordon will never forget the day in fall of 2018 that she was told her teenage son Matthew had leukemia you don't know what to think I just remember I cou
ldn't stand jana Jairus was diagnosed with Hodgkin's lymphoma her sophomore year in high school to be diagnosed with cancer at the age of 15 hardly 15 she went into remission only to return six months later compounding the emotional hardship with a financial burden for her and her family a lot of stress for a very very long time jameelah and siani are among a growing number of Americans turning to social media and direct fundraising efforts to help offset out-of-pocket medical costs I think that
we are seeing a growth of this kind of crowdfunding because people number one aren't sufficiently covered in our patchwork system and we see people who need to fill in the gaps number one we also see people who are just much more aware of the way that social media can be used but Nova Southeastern University law professor Cathy Sir menara says there are potential risks for well-intentioned donors there are schemes people who engage in all kinds of different activity to just fraudulently make up
a person who is ill to make up facts about a person people do know and those who benefit from crowdfunding also face risks those donations can lead to a big tax bill technically of course without any separate foundation if I just gave you a hundred thousand dollars you have a hundred thousand dollars of income right taxes do on the plus side professor Sir menara says crowdfunding creates a great sense of community a virtual way for people to come to other and helps someone in need people in our
community and Coral Springs have been so good with Matthew and it's so important for him getting better because he knows that everybody is rallying behind him it's definitely a lot easier now knowing that with the fundraising that has gone you know going on and taken place that we have you know some cushion to lean on and crowdfunding donations can be shielded from taxes if they are put in a legitimate tax free account and only used for the intended purpose and by the way both siani and Matthew
are doing well
Comments