I’ve written this article multiple times in my head. I’m sure a lot of writers do that, but I was having difficulty with the tone on this one. I knew what I wanted to say, but I was struggling with how to say it.
Kinda like when you decide you are going to end a relationship with someone. How do you tackle that conversation? You know it’s going to be awkward and to make matters worse, they’re usually with you when you have that epiphany. Which is why all those conversations start with the same phrase, “Uhh…we need to talk.” How many of us have heard or said those words before?
Well, I thought it best to approach this topic in a similar manner. Except, I am not ending a relationship with a person, but rather an idea that has gained in popularity over recent years.
I am breaking up with the idea that we should use crowdfunding sites for medical bills and expenses.
But, I have some really good reasons why. And I don’t want to make things super weird, so let me explain to make things less awkward.
Reason #1 – “I can’t handle a relationship with you right now”
Medical expenses can quickly rise in the tens, sometimes hundreds of thousands of dollar range. Creating a successful crowdfunding campaign for medical expenses can be a high dollar event. What many people may not be aware of is that crowdfunding sites are for profit businesses. Which means if you raised a large amount of money, that could be considered taxable income and a 1099-K form will be sent to you in the mail. Surprise! Which also means the donations people make cannot be considered tax deductible since they were not made to a 501(c)(3). Shiza.
Another thing to consider is that since the money raised could be considered as income, would that boost in income disqualify the benefactor from current assistance they’re receiving? Medicaid? A non-profit foundation covering your prescriptions? A payment plan with a hospital and/or doctor? It’s important to consider before starting your next campaign.
When it comes down to it, a very successful crowdfunding campaign for medical expenses may result in additional work and stress. And when you’re the recovering patient and/or caregiver, the last thing you want to do is make life more difficult.
Reason #2 – “There are more fish in the sea”
Thankfully, there are many other viable options to raise money for medical expenses. And these non-profit organizations were created specifically to help people in these exact situations. By using a non-profit, you not only receive their experience and skill, but all the tax advantages that come along with it. Many also tend to have lower fees, which means more of the money being raised, gets to the benefactor.
Since you would be using a non-profit, donors contributions would be tax-deductible. Which could encourage larger dollar amounts in their donations.
I have worked with three organizations in the past and have been impressed every single time. They are a fantastic group of people, providing a service that helps those when they need it most. I will always speak highly of Children’s Organ Transplant Association, National Foundation for Transplants, and HelpHopeLive.
Reason #3 – “It’s Not You, It’s Me”
Look, crowdfunding, I dig you. Please don’t take what I’m saying today personally. I love the sharing economy and will continue to contribute to campaigns I support. But I can no longer support high dollar medical expense campaigns. It may work for other people and that is perfectly fine with me. People need to do what they need to do. But, as long as there is a better option out there for some, I have to share that message.
Choosing a non-profit to raise high dollar amounts of money for medical expense is about one thing overall, peace of mind.
Eliminate the possibility of income tax issues. Eliminate the uncertainty of how to set up a fundraiser. Eliminate the possibility of losing income-based assistance.
Gain a team designed to help you. Let them focus on the fundraising so you can focus on the healing.
Whether taking care of a loved one or getting yourself better, the healing process is much easier when you don’t have to worry about finances.
So if you could, do me a favor and share this article with someone you know so we can spread the word.
Until next time, good vibes always.