<prompt> Human: Hey Reddit,We have started a crowdfunding campaign to help a friend with some medical costs estimated at 750,000. The hospital treatment will happen in Europe and Im in the U.S. Mississippi.The fundraising is done with with a personal account. Is there any tax liability regarding the money that is raised?  <response>: It would probably be best to speak to a lawyer. If youre serious about raising 34 of a million dollars, a lawyers fees are a must. There is no tax on receiving gifts, but the giver may have to pay a tax depending on the amount given. Really what is happening is that people are giving your friend money and you are taking custody of it for him. It will look like people gave you money, and then you gave him money, which may attract IRS attention, which you then have to defend. Even if it is defensible at that point, it will be better to have a lawyer set things up properly, so a tax challenge is less probable. Probably this means forming a company to receive funds for your friend.Certain contributions to charitable organizations are tax-deductible. If its possible to set this up for your fund-raising, it may help attract donations. Again a lawyer can advise you best. 