How to Organize a Fundraiser for a Cancer Patient

A cancer diagnosis presents significant challenges, extending beyond medical concerns to financial burdens from treatment costs and lost income. In these difficult times, community support through fundraising can provide much-needed relief. Organizing a fundraiser demonstrates solidarity and offers tangible assistance, helping patients focus on their health rather than overwhelming expenses. This collective effort can ease the financial strain, allowing individuals to navigate their journey with greater peace of mind.

Understanding Legal and Tax Considerations

Organizing a fundraiser for an individual requires careful attention to legal and tax implications, which differ significantly from donations made to registered charities. Funds raised directly for a person are considered personal gifts or income, impacting both donors and the recipient. Understanding these distinctions from the outset is important to ensure compliance and transparency.

Donations made to personal fundraisers are not tax-deductible for the donor. Unlike contributions to qualified charitable organizations, which are tax-exempt under Internal Revenue Code Section 501(c)(3), personal gifts do not qualify for a charitable deduction. Donors should be informed that their contributions will not result in a tax write-off.

For the recipient, funds received through a personal fundraiser are considered gifts rather than taxable income. For 2025, the annual gift tax exclusion is $19,000 per donor. If an individual receives gifts exceeding this amount from a single donor within a calendar year, the donor may be required to file a gift tax return (Form 709).

However, if funds raised are considered compensation for services or used to cover business expenses, they could be classified as taxable income for the recipient. The Internal Revenue Service (IRS) views gifts as non-taxable to the recipient, but how funds are used can influence this determination. Recipients should consult with a tax professional to understand their specific tax obligations.

An alternative approach involves partnering with a fiscal sponsor, an existing 501(c)(3) non-profit organization that accepts donations on behalf of the individual. This arrangement allows donors to make tax-deductible contributions to the fiscal sponsor, who then grants the funds to the cancer patient for medical or related expenses. The fiscal sponsor charges an administrative fee, usually 5% to 10% of funds raised. Establishing a new 501(c)(3) non-profit is too complex and time-consuming for immediate fundraising needs.

Transparency is important regardless of the fundraising structure. Organizers should disclose how funds will be used, whether they are tax-deductible for donors, and any fees associated with the fundraising platform or fiscal sponsor. Clear information builds trust with donors and manages expectations. This disclosure should be prominent on fundraising pages or promotional materials.

Developing Your Fundraising Plan

Effective fundraising begins with careful planning, ensuring the effort aligns with the patient’s needs and available resources. Determining a realistic financial goal is a primary step, requiring assessment of medical bills, ongoing treatment costs, and living expenses during recovery. This evaluation helps establish a clear target that can motivate donors and guide fundraising activities.

Choosing an appropriate fundraising method involves considering various options, each with its own advantages and potential costs. Online crowdfunding platforms, such as GoFundMe, CaringBridge, or GiveSendGo, offer accessible ways to reach a wide audience. These platforms charge a processing fee per transaction, usually 2.9% to 5% plus a small fixed amount like $0.30. While convenient, these fees reduce the total amount received by the patient.

Direct appeals, often through personal networks, can minimize overhead costs and allow for personalized communication with potential donors. Event-based fundraisers, like bake sales, benefit concerts, or charity walks, can generate community engagement and larger lump sums. These events, however, require more organizational effort and may incur upfront expenses for venue rental, supplies, or permits.

Budgeting for the fundraiser itself is an overlooked aspect of planning. Even simple campaigns can have associated costs, including platform fees, promotional material printing, or event-related expenditures. These operational expenses should be estimated and accounted for in the fundraising goal, ensuring the target amount covers both the patient’s needs and the fundraiser’s cost. Understanding these potential deductions helps prevent shortfalls.

Assembling a dedicated support team is important for managing tasks involved in a fundraising campaign. Friends, family members, or community volunteers can assist with various aspects, from creating campaign content to promoting events and tracking donations. Delegating responsibilities among a reliable team can alleviate the burden on any single individual, making the process more manageable and effective.

Identifying the patient’s needs and comfort level is an empathetic step that should guide all planning decisions. Some patients may prefer a private, online campaign, while others might welcome a large community event. Understanding their preferences ensures fundraising efforts are supportive and respectful of their personal circumstances. The fundraiser should ultimately serve the patient’s best interests.

Launching and Promoting Your Fundraiser

With a solid plan, the next phase involves launching and promoting the fundraising campaign to reach potential donors. Initiating the chosen fundraising method, whether publishing an online campaign page or opening event registration, marks the official start. This step requires careful attention to detail, ensuring all information is accurate and accessible.

Crafting a compelling narrative is important to engaging donors and conveying the urgency of the patient’s situation. An effective story includes details about the patient’s journey, the impact of cancer on their life, and a clear explanation of how funds will be utilized. Incorporating photos or videos can personalize the appeal and create an emotional connection, encouraging support from the community.

Promotional strategies are important for spreading awareness and attracting contributions. Leveraging social media platforms, email lists, and local media outlets can expand the campaign’s reach. Sharing the story across various channels, along with direct links to the fundraising page, amplifies the message. Personal outreach, such as direct messages or phone calls to close contacts, yields results due to existing relationships.

Maintaining momentum throughout the fundraiser requires consistent effort and strategic communication. Regular updates on the patient’s progress, milestones reached, or how funds are being used can keep donors engaged and encourage continued giving. Sharing positive testimonials or stories of impact can reinforce the importance of the campaign and inspire new contributions. Consistent communication demonstrates dedication and builds trust.

Handling and Distributing Contributions

Once contributions begin to arrive, careful management of funds ensures accountability and proper use. Tracking all donations is essential, involving record-keeping of donor names, contribution amounts, dates received, and contact information. This approach provides a clear financial trail and facilitates acknowledgment of every gift.

Managing collected funds requires establishing a clear holding mechanism. Opening a dedicated bank account for the fundraiser, separate from personal accounts, is recommended. This separation ensures clarity regarding funds, simplifies tracking, and prevents commingling with personal finances, which is important for financial integrity.

Disbursing funds to the patient must align with the initial stated purpose of the fundraiser. Funds can be transferred directly to the patient’s bank account or used to make direct payments to medical providers, such as hospitals or pharmacies. This helps ensure funds are used for their intended purpose.

Acknowledging donors promptly and sincerely is an important act of gratitude that fosters goodwill and encourages future support. Sending timely thank-you notes or messages, whether through email or personalized cards, expresses appreciation for their generosity. Highlighting the impact of their contribution reinforces their decision to support the cause.

Transparency regarding the use of funds should continue throughout and after the fundraising period. Providing periodic updates to donors on how the money was spent demonstrates accountability. This ongoing communication builds trust within the community and ensures supporters feel confident their contributions made a meaningful difference in the patient’s journey.