Donors contributing to the legal defense fund of Luigi Mangione, the accused killer of UnitedHealthcare CEO Brian Thompson, through GiveSendGo are unlikely to receive tax deductions, according to experts.
Why It Matters
A fundraiser launched on GiveSendGo by the December 4th Legal Committee and accepted by Mangione’s legal team has amassed more than $800,000 in donations. Donations range from a few dollars to up to $36,000.
With taxes due next week, the organizers of the fundraiser shared a note that the tax deductibility of contributions “depends on applicable laws and regulations” and urges donors to “consult a tax professional to determine eligibility.”
Americans’ ability to write off contributions to Mangione’s fundraiser depends on the structure of the fundraising campaign.
What To Know
Mangione, 26, faces federal and state charges for the fatal December 2024 shooting of UnitedHealthcare CEO Brian Thompson outside a Manhattan hotel.
U.S. Attorney General Pam Bondi labeled the act a “premeditated, cold-blooded assassination” and has directed federal prosecutors to seek the death penalty.
Mangione has garnered significant support from some Americans who view his alleged crimes as a heroic push against the health insurance industry.
The GiveSendGo fundraiser for Mangione was created in December and has now raised more than $830,000 toward its $1 million goal.
When it comes to donations, federal tax law is explicit. Contributions are only tax deductible if made to a qualified 501(c)(3) nonprofit organization.
To qualify as a 501(c)(3), an organization must exist for one of the following purposes, according to the IRS:
- Religious
- Charitable
- Scientific
- Testing for public safety
- Literary
- Educational
- Fostering of national or international amateur sports, and
- Prevention of cruelty to animals and children
GiveSendGo is a 501(c)(3) organization, meaning donations that go directly to GiveSendGo are tax deductible. However, GiveSendGo.com, which is the crowdfunding platform, is a completely separate entity, and therefore not inherently tax-deductible unless the specific campaign is operated under such an entity.
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, emphasized the complexity of such cases.
“The defense fund has to be set-up as a 501(c)(3) in order to even open the door to the possibility of the donation becoming a write-off,” Beene told Newsweek. “States like New York and California typically fall in-line with federal donation policies, while other states may vary.”
For anyone donating to the fundraiser with the hope of writing it off on their taxes, Beene advised them to speak with a tax attorney before making the donation.
What People Are Saying
GiveSendGo said on its website:“GiveSendGo provides a platform for individuals and organizations to raise funds for various causes. It is important to understand that donations made to personal GiveSendGo campaigns are generally not tax-deductible. You won’t be issued a tax receipt from GiveSendGo.”
Kevin Thompson, CEO of 9i Capital and host of the 9innings podcast, told Newsweek: “Crowdfunding is generally not tax deductible unless the money is going directly to a 501(c)(3). As for direct crowdfunding, I am unaware of your ability to receive deductions.”
What Happens Next
Mangione has pleaded not guilty to all charges. He remains in custody at the Metropolitan Detention Center in Brooklyn and is scheduled to appear in federal court on April 18.
A state court appearance in New York is set for June 26. Whether the Department of Justice will formally proceed with a capital case remains pending as legal motions continue.
Americans must file taxes by the April 15 deadline or risk facing penalties with interest.