29/01/2026
On Facebook and other social media platforms, we increasingly see fundraisers launched for private individuals, for example:
👉 to cover legal costs
👉 for medical treatment abroad
👉 for assistive devices
👉 for funeral expenses
👉 to support survivors of tragic events
The good intention is clear, the tax treatment is not always.
🔍 When is a fundraiser tax-free?
The amount raised is not taxable for the beneficiary if all of the following conditions are met:
✅ it is a one-off event (not ongoing support),
✅ it is not remuneration (not payment for work or services),
✅ donations come from a wider circle of people (not only family or friends),
✅ the fundraiser was not initiated by the beneficiary,
✅ the purpose of the fundraiser is to alleviate the consequences of a serious illness, accident or crime, or to recognise the beneficiary’s merits (e.g. many years of voluntary work).
⚠️ When does tax have to be paid?
If the above conditions are not met, the amount received becomes taxable, and:
➡️ must be taxed as personal income, with a tax burden of up to around 53%.
📌 For example, the Danish tax authorities have considered the following to be taxable:
❌ GoFundMe fundraisers initiated by the beneficiaries themselves (e.g. to cover the costs of a school trip abroad),
❌ fundraisers supporting young athletes’ training abroad (e.g. golf, motorsport or horse riding),
❌ fundraisers launched to finance legal proceedings.
👉 Important: even official approval of a fundraiser does not automatically make it tax-free.
❓ Planning to start a fundraiser but not sure whether it will be tax-free?
✉️ Drop us a message, and we’re happy to help you navigate the rules:
https://accounts.cool/en/contact
