When 88-year-old Ed Bambas broke down in tears at his grocery store register this week, he had no idea strangers around the world were about to change his life.
“I don’t know what to say,” Bambas told Australian social media influencer Sam Weidenhofer (1), who had just handed him a $400 tip. “It’s going to go a long way to help me.”
Within days, that $400 had snowballed into more than $1.85 million as of Saturday morning — and counting — raised by tens of thousands of donors from around the globe who were moved by the Army veteran’s story and donated to a GoFundMe page (2). Bambas has been working five days a week, eight hours a day, at a Meijer supermarket in Michigan just to make ends meet.
“I wish my wife were here, but it’s something that dreams are made out of,” Bambas told Detroit station WXYZ Friday after being surprised with a ceremonial check (3).
It’s a heartwarming story of generosity. But behind the feel-good headlines lies a question few donors may have considered: How much of that $1.85 million will Bambas actually get to keep?
First, there’s the platform’s take. GoFundMe charges a transaction fee of 2.9% plus $0.30 per donation. There’s no platform fee for personal fundraisers in the U.S., but those processing charges add up quickly on a campaign this size (4).
On $1.85 million, the math looks roughly like this: The percentage fee alone eats about $53,700. The flat $0.30 per transaction – assuming an average donation of around $25 – adds another $22,000 or so. That’s approximately $75,000 in processing fees before Bambas sees a dime.
The actual amount could be higher or lower depending on how donations were distributed (larger individual donations mean fewer flat fees), whether any came from international donors (which can incur additional conversion fees) and how many donors opted for recurring contributions (which carry a 5% fee).
Still, Bambas should receive somewhere in the neighborhood of $1.77 million after GoFundMe’s cut as of Saturday morning, a substantial sum by any measure.
Here’s where it gets more complicated. Will Bambas owe income tax on his windfall?
The short answer: probably not.
The IRS generally considers donations to personal GoFundMe campaigns as ‘personal gifts’ rather than taxable income. As long as donors gave out of generosity, without receiving goods or services in return, the money isn’t subject to income tax for the recipient.
“Donations made to personal GoFundMes are generally considered to be ‘personal gifts’ which, for the most part, are not taxed as income in the United States,” GoFundMe states in its help center (5).
However, Bambas will likely receive an IRS Form 1099-K from GoFundMe, which reports payments exceeding $5,000 in a calendar year. Receiving the form doesn’t automatically mean he owes taxes, but it does mean the IRS knows about the money and he’ll need to properly document that the funds were gifts, not income (6).
Tax experts recommend that recipients of large crowdfunding campaigns consult with a professional and keep detailed records. The IRS advises maintaining documentation of all donations and how funds were used for at least three years.
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Interestingly, the tax burden — if any — falls on the givers, not the receiver.
Individual donors who gave more than $19,000 to Bambas (the 2025 annual gift tax exclusion) would technically need to file a gift tax return with the IRS. But even then, they almost certainly won’t owe actual gift taxes unless their lifetime giving exceeds $13.99 million.
For the vast majority of donors who chipped in $20, $50, or $100, there are no tax implications whatsoever, though their contributions also aren’t tax-deductible, since Bambas isn’t a registered charity. A safety net for his golden years
Meijer, the supermarket chain where Bambas works, has stepped up as well, offering him free financial planning assistance for life.
“We are providing Ed with no-cost financial planning assistance for life to help him make the most of these generous contributions and will continue to support him as a valued member of our team,” the company said in a statement (7).
That’s good news, because managing a sudden windfall requires careful planning, especially at 88. With proper guidance, Bambas could structure the funds to cover living expenses, medical care and some of those ‘small joys’ the GoFundMe page mentioned, for the rest of his life.
Bambas’ story resonated because it exposed a harsh reality: An 88-year-old veteran who served his country and worked for decades at General Motors lost his pension when the automaker declared bankruptcy in 2012. His wife’s illness drained what remained. He sold his house. He went back to work.
“No 88-year-old in America should have to work because they need to, and that breaks my heart,” Weidenhofer told WXYZ Detroit.
The $1.85 million raised won’t fix the systemic issues that left Bambas working a cash register at 88. But for one man who just wanted to “live somewhat the life I was hoping for,” it might be enough.
After fees and careful planning, Bambas should walk away with roughly $1.77 million, more than enough to finally retire and visit his wife’s grave every day, as he told reporters he tries to do.
“I just try to be myself, with one exception,” Bambas said. “I think my wife sits on my shoulder and helps me do the right thing (8).”
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TikTok (1); Go FundMe (2); WXYZ (3); GoFundMe (4); GoFundMe (5); IRS (6); NBC News (7) WXYZ (8)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: finance.yahoo.com
