Disclaimer: ioby is not legally allowed to provide financial or tax advice to project leaders, and we cannot advise on the tax filing requirements for your particular project disbursement. We recommend all fiscally sponsored project leaders consult with a tax professional if possible.
My donors are looking for proof of their tax-deductible gift to my project, what should I tell them?
You can assure them their gift is fully tax deductible, and direct them to this link for more info on finding the email that ioby sent them confirming their tax-deductible gift when they donated. If they need that email re-sent, they can simply email us at [email protected].
ioby is our project’s fiscal sponsor and disbursed funds to me as an individual for our project. Do I need to report money crowdfunded with ioby as taxable income?
If you have used your ioby campaign funds for the intended project, in accordance with what was stated in your fiscal sponsorship agreement, then the funds are considered grant funds and ioby should not need to issue you a 1099-MISC for project disbursements.
If your financial professional believes that you DO need a 1099-MISC form from ioby, please contact us at [email protected] to discuss your particular situation. Typically, this situation would only arise if you did NOT spend the funds for the originally intended charitable purpose.
We have a different fiscal sponsor that disbursed funds to me as an individual for our project. Do I need to report those funds as taxable income?
For tax guidance on funds you receive through another fiscal sponsor, please consult with your fiscal sponsor and/or your financial professional.
What if part of the funds disbursed to me were used to pay myself for work I did on our project?
ioby is not able to provide tax-advice to individuals about private income you may have received from your ioby campaign. Please consult with a tax professional if possible.
What if I used part of the funds disbursed to me to pay someone else?
If you are paying someone for a service or for their time working on your project, you should consult a legal or tax advisor before doing so to determine tax liability. ioby will not provide a 1099 to anyone on behalf of a project leader, including projects where ioby is the fiscal sponsor.
Still have questions? Here are some further resources:
- The IRS provides some guidance on crowdfunding and taxes, here and here. Please note, as mentioned above, it is NOT standard for ioby to send out a Form 1099-K to individuals who receive funds from an ioby campaign, since the ioby platform is exclusively for public-benefit projects and donors do not receive goods or services in exchange for their donations to ioby projects.
- If you need assistance completing your taxes and generally make less than $60,000 per year, you are likely eligible to participate in the IRS’s Volunteer Income Tax Assistance (VITA) Program. See the IRS website to set up an appointment to access FREE assistance with completing your tax returns and getting your individual tax questions answered.
- The company https://brasstaxes.com/ specializes in tax preparation for freelancers and is familiar with fiscal sponsorship and unusual income structures.
We cannot offer tax preparation advice for your particular situation, but please feel free to contact us at [email protected] if we can be of further assistance.