Our family is about to start raising funds to send our sister to therapy session in Poland for her Cerebral Palsy. The total needed is about $39,000. We've set up a fundraising account with youcaring that goes directly into a paypal account. I know that the website gofundme works as a 501(c)3 and donations are tax-deductible, however, they charge 3.5% for all donations that come through. Would we still have to pay taxes on this through a 501(c)3? I know that a gift of that amount, exceeds the general annual allowance, so what kind of tax rate would we be looking at for this? Or would it be smarter to use a site like gofundme, that would possibly eliminate the need for paying taxes on donations? Would it be smart (or even legal?) to separate the total gifted amount among the 5 family members so that it would be below the annual amount allowed for each person?