Crowdfunding a Funeral: How to Set Up a Fundraiser, Fees, Taxes and Tips

To crowdfund a funeral, get a written quote from a funeral home, set a goal that covers it plus fees, name the person who will pay the bill as the beneficiary, and share the page directly with people who knew the person who died. The Funeral Consumers Alliance (FCA) lists crowdfunding and church or club fundraising among the workable ways to cover a funeral. It works best as one part of a plan rather than the whole plan.

How do you start a funeral fundraiser?

1. Get the price first. Ask a funeral home for its General Price List. The FTC Funeral Rule requires homes to give you accurate prices by phone and a printed list to keep. Add the cemetery, flowers and other outside costs.
2. Choose a platform. GoFundMe is the best known. Compare others in our guide to funeral fundraising platforms.
3. Name the right beneficiary. This should be the person who will pay the funeral home, such as the spouse, child or executor. GoFundMe says donations are held by its payment partners and released only to the named beneficiary, and that it verifies the recipient's identity.
4. Write the page. Say who has died, what the money is for, and who is receiving it. Add a photo, and a short memory of the person.
5. Share it directly. Text, email and message the person's friends, family, workplace and community. Most donations come from people who already know the family, so start there.
6. Post updates. A short note when you reach a milestone, and a final thank-you once the funeral has been paid for, tells donors where their money went.

How much should you ask for?

Base your goal on real numbers. For a simple cremation, the FCA says direct cremation can cost as little as $1,000. For a burial, it says to expect $5,000 or more for direct burial, so check what a quote includes. A funeral with a viewing and service costs more. Prices for the same service can differ by thousands of dollars between homes, so the goal you set should come from a written quote, not a guess. See our average funeral cost breakdown and guide to setting fundraising goals.

Don't forget the fees. On GoFundMe in the US, 40 donations totalling $4,000 cost $116 (2.9%) plus $12 ($0.30 each), so you'd receive about $3,872. Add a cushion to your goal for that. Other platforms charge different fees.

What does crowdfunding cost?

GoFundMe's US pricing page says there is no fee to start or manage a fundraiser. It charges a payment processing fee of 2.9% plus $0.30 per donation for individual and business fundraisers, and 2.2% plus $0.30 for certified nonprofits. Donors can add an optional tip to support GoFundMe, which is never required. International donations may carry extra conversion fees.

Other platforms set their own fees and terms, so read them before you commit. Our guide to funeral fundraising platforms compares them.

Is funeral crowdfunding taxable?

Often not, but the answer depends on the facts. The IRS says in Publication 525 that gifts and inheritances generally aren't included in your income. For 2025 and later, the IRS says platforms must file a Form 1099-K only when payments exceed $20,000 in more than 200 transactions. A platform may still send one for smaller amounts. The IRS also says you must report any income on your tax return whether or not you get the form.

A few practical steps:

• Don't panic if a 1099-K arrives. The form reports payments. It doesn't decide whether they're taxable.
• Keep the funeral invoice and receipts, so you can show where the money went.
• Talk to a tax professional if the campaign raised a large amount or the money was used for something other than the funeral.

For donors, the IRS says you can't deduct contributions to specific individuals, even through a qualified organization for the benefit of one person. A funeral fundraiser for a family is generally a personal gift, not a charitable donation.

What mistakes should you avoid?

• Waiting until the last minute. Funeral homes usually expect payment up front, and crowdfunding may not arrive in time. See why funeral homes ask for payment upfront.
• Signing for what you can't afford. Don't commit to a full service on the assumption the campaign will cover it. Choose a plan you can pay for if it doesn't.
• Setting an unrealistic goal. A goal far beyond what your circle can give can make a campaign look stalled.
• Forgetting other sources of money. Life insurance, employer benefits, Social Security's $255 lump-sum payment and veterans' benefits can all help. See how to pay for a funeral.
• Being vague about a surplus. Decide in advance what happens to leftover money and say so on the page.

How can donors stay safe?

GoFundMe says misuse is rare, and it offers a Giving Guarantee that refunds donors if something isn't right. Even so, donors should give only to people they know or can verify, check that the named beneficiary is the person who's paying for the funeral, and be wary of pages created by strangers. If you're the organizer, your page will be trusted more if you say exactly who the money goes to.

For etiquette on asking, see funeral crowdfunding etiquette, asking for funeral donations and setting up a memorial fund.

What to do next

1. Get a written quote or General Price List from at least two funeral homes.
2. Set a goal that covers the quote plus fees, and choose your beneficiary.
3. Launch the page and share it directly with people who knew the person.
4. Line up a fallback, such as direct cremation, and read our guide on what to do if no one can afford the funeral.