How to Start a Fundraiser for Someone in Minnesota

To start a fundraiser for a specific person or family in Minnesota, first get their permission, verify the practical need, decide who will receive and control the money, explain what donations will support, and discuss what happens if the need or total changes. When an organizer will hold the money, keep it separate and maintain clear records. Tell donors that gifts to an individual are generally not tax deductible, and ask qualified tax or benefits professionals about the recipient's circumstances before assuming the money will have no effect.

First, confirm which kind of fundraiser you are creating

The label "fundraiser" can describe several legally and practically different arrangements.

A fundraiser for one named person or family

This guide is designed for a campaign such as:

Help a named family after a house fire.
Support a named person's medical travel and household expenses.
Help a named parent with burial and transportation costs.
Raise funds for a named person's accessible vehicle.
Help a named family secure temporary or permanent housing.

The Minnesota Attorney General's 2026 crowdfunding alert says that raising money for a specific named individual, business, or family is not treated as "charitable" under the charitable-fundraising distinction discussed in that alert.

That distinction does not make deception, theft, misuse of money, or false promises acceptable. The organizer still needs an accurate public explanation, a clear money path, appropriate consent, careful records, and honest updates.

A campaign for a general charitable purpose

A campaign such as "buy winter supplies for families in need across Minnesota" is different because the beneficiaries are not limited to one named person or family.

Minnesota guidance says people, groups, and businesses raising money or collecting goods for a general charitable purpose may have duties involving disclosures, registration, separate fund handling, accurate records, and use of money for the stated purpose. Those duties can apply even when the organizer is not a 501(c)(3) nonprofit.

Do not convert a named-person fundraiser into a general community fund without reviewing the different rules.

A fundraiser for an established nonprofit

When the intended recipient is a qualified nonprofit, use its official donation route or an approved campaign structure whenever practical. Confirm who is authorized to organize the campaign and whether donations are tax deductible.

Paid fundraising work

Compensated fundraising for a charitable organization can fall under separate Minnesota professional-fundraiser rules. This page does not determine whether a person or company must register.

Get the beneficiary's permission before launch

Ask whether the person wants a public fundraiser at all.

Discuss:

Who will organize the campaign.
Who will receive and control the funds.
What the public description may say.
Whether the person's full name may be used.
Whether photographs or video may be used.
Whether children or other family members may appear.
Whether media or creators may be contacted.
Who answers donor questions.
What expenses the money may support.
What happens if circumstances change.
What type of public updates the person is comfortable sharing.

Written confirmation is useful because it preserves the agreed boundaries, but do not turn the conversation into an intimidating legal demand. Use plain language the beneficiary understands.

Permission to receive help is not permission to be filmed, interviewed, tagged, publicly thanked, or repeatedly used in content. Help should not depend on publicity.

Verify the need proportionally

Confirm enough to understand what the fundraiser is promising.

Depending on the situation, that may include:

Speaking directly with the beneficiary.
Confirming the organizer's relationship.
Reviewing an estimate or bill privately.
Calling a vendor with permission.
Confirming a housing, transportation, burial, care, or relocation need.
Identifying other active fundraisers.
Understanding what insurance, family, employer, church, nonprofit, or government help may already exist.
Separating confirmed facts from estimates and unknowns.

Do not publish Social Security numbers, identification documents, account numbers, private medical records, full bank statements, children's schools, home addresses, or other unnecessary private records to prove the need.

Use How to Verify a Need Before Starting a Fundraiser for the complete verification process.

Choose the organizer, recipient, and money path

Before launch, write one sentence that accurately answers:

Who receives the money, who controls it, and how will it reach the person or expense described?

Option 1: the beneficiary receives funds directly

The named person controls transfers and spending. This can reduce the organizer's handling responsibilities.

If a platform supports a beneficiary role, confirm that the person is willing and eligible to complete identity and bank verification. On GoFundMe, an organizer can invite another person as the beneficiary so that person can transfer the funds to their own account. The beneficiary's name appears publicly, and only one beneficiary can receive funds at a time under the current platform process.

Do not add someone as the beneficiary without discussing the public name display, transfer responsibilities, tax questions, and possible benefit effects.

Option 2: the organizer receives and manages funds

The organizer becomes responsible for safeguarding the money, making transfers or payments, keeping records, and explaining material changes.

The public description should say that the organizer will receive or administer the funds on the beneficiary's behalf.

Avoid language such as "all money goes directly to the family" when it first enters the organizer's account.

Option 3: pay an agreed expense directly

Donations or organizer-managed funds may be paid to an agreed landlord, repair company, funeral home, medical-travel provider, accessibility vendor, or another provider.

Direct payment can clarify one expense, but it may not solve related food, transportation, housing, caregiving, or income needs. Confirm the beneficiary wants the arrangement.

Option 4: use an established organization

A nonprofit or other established entity may be useful when the situation needs eligibility review, restricted payments, longer-term services, or more formal administration.

Do not call an organization a partner or fiscal sponsor until it has agreed.

Apply Minnesota safeguards when an organizer holds the money

The Minnesota Attorney General's named-individual guidance recommends protective steps for a person raising and holding money for someone else.

Adapt the safeguards to the actual structure. A platform transferring money directly to the beneficiary is different from an organizer collecting checks, cash, payment-app transfers, and online crowdfunding proceeds.

Keep organizer-managed funds separate

Minnesota guidance recommends placing money raised for the named person in a trust or savings account created for that purpose and keeping it separate from money held for other purposes.

Do not describe an ordinary account as a formal trust unless one has actually been established. Ask the bank, an attorney, or an accountant what structure fits the situation.

Ask the bank about controls

Minnesota guidance suggests seeking assistance from the bank or savings institution. The bank may have identification, tax-number, account-title, signer, and recordkeeping requirements.

Consider two-person approval

For organizer-managed accounts, Minnesota guidance says it is a good idea to require two signatures on checks, avoid signing checks in advance, and confirm the purpose before authorizing a withdrawal. It also suggests that one signer not be a relative of the beneficiary.

These are protective recommendations, not a universal substitute for legal advice or a platform's transfer rules.

Pay against bills when appropriate

Where practical and approved, use invoices, bills, receipts, or written expense records before organizer-managed funds are withdrawn.

Do not publish private receipts that expose account numbers, addresses, medical details, or other sensitive information.

Keep a complete money record

Track:

Date received.
Source or platform.
Gross amount.
Platform or payment-processing deductions.
Transfer date.
Recipient or payee.
Purpose.
Supporting invoice or receipt when appropriate.
Remaining balance.
Public update connected to a material change.

The IRS also recommends complete crowdfunding records for at least three years. A lawyer or accountant may advise a longer retention period.

Define the purpose broadly enough to match the real need

The fundraiser should be specific enough to understand and broad enough to cover the related needs you reasonably anticipate.

Too narrow:

Donations will pay only one medical bill.

More realistic when accurate:

Donations will support medical-related travel, temporary housing, food, transportation, and essential household expenses while the family manages treatment.

Another example:

Funds will first support burial expenses and essential vehicle repairs, with any remaining amount used for related family stability costs described in campaign updates.

Do not add unrelated categories merely to create unlimited discretion. The uses should remain connected to the situation donors were told about.

Decide what happens if money remains

Discuss the excess-funds plan before launch.

Possible approaches include:

Continue supporting the named beneficiary's related needs.
Cover later expenses connected to the stated situation.
Pause or close donations when the need is met.
Refund donations when the platform and circumstances allow.
Transfer remaining funds to a named qualified organization if that possibility was clearly disclosed and legally appropriate.
Seek professional advice before redirecting restricted or organizer-managed funds.

The Minnesota Attorney General's guidance recommends telling prospective donors from the beginning how remaining money will be handled.

Avoid a hidden catch-all such as "anything else the organizer decides." If the plan changes materially, explain the change before spending the remaining balance.

Explain tax deductibility correctly

Donations to a named individual are generally not charitable deductions

The Minnesota Attorney General's named-individual guidance says that in most cases donations to an individual are not tax deductible and that prospective donors should be told this.

The IRS likewise states that gifts to individuals are not deductible as charitable contributions. Do not add "tax deductible" to a personal fundraiser merely because it uses the word donation.

A clear disclosure can say:

This fundraiser supports a named individual or family. Contributions are not represented as tax-deductible charitable donations. Donors should consult their own tax adviser if they have questions.

Tax treatment for the recipient or organizer depends on the facts

Do not promise the beneficiary that crowdfunding money is never taxable.

IRS guidance says:

Some contributions made from detached generosity and without anything expected in return may be gifts.
Not every crowdfunding contribution is necessarily a gift.
An organizer receiving money and forwarding it to the intended person may have different facts from an organizer keeping money or receiving compensation.
A Form 1099-K does not by itself determine whether the amount is taxable.
Organizers and recipients should keep complete records.

Use a qualified tax professional for a large campaign, a business-related campaign, an employer-supported campaign, a campaign involving goods or services, or any situation where ownership and tax treatment are unclear.

Check Medical Assistance, SSI, and other benefit questions before transfer

Money in an account can affect some income- or asset-tested programs. The answer depends on the program, eligibility category, ownership, timing, and how funds are used.

Minnesota's Department of Human Services says some Medical Assistance categories have asset limits and others do not. SSI is based in part on income and resources, and recipients must report changes that may affect eligibility or payment amounts.

Before a large transfer:

Ask which programs the beneficiary receives.
Do not guess based on another person's experience.
Contact the beneficiary's Minnesota county or Tribal human-services office for Medical Assistance questions.
Contact Social Security for SSI reporting questions.
Consider a qualified benefits planner, elder-law attorney, disability-law attorney, or other appropriate professional.
Document the advice that shaped the chosen money path.

Do not hide the existence of funds, route money through someone else to evade reporting, or describe money as inaccessible when the beneficiary can use it.

This section is a warning to obtain program-specific help, not a conclusion that a fundraiser will reduce or end benefits.

Choose a platform or direct-payment method

Compare:

Who can organize.
Who can receive funds.
Identity and bank-verification rules.
Fees and optional donor contributions.
Transfer timing.
Refund rules.
Privacy settings.
Public organizer and beneficiary names.
Security controls.
Account support.
Ability to close or pause donations.
Ability to export or retain records.

If using GoFundMe

Current GoFundMe guidance allows an organizer to invite another person as the beneficiary, giving that person control of bank transfers. Only one beneficiary can receive funds at a time, and changing the beneficiary requires consent under the platform's current process.

If the beneficiary is not ready to manage transfers, the organizer may receive the funds instead, but that arrangement should be disclosed and documented.

A GoFundMe fundraiser can be removed from public search and discovery, but anyone with the direct link can still view it. A "private" setting is not the same as confidential.

Use multi-factor authentication, protect the organizer's email and phone account, and never share bank or identity information with people offering paid promotion through messages.

If using cash, checks, or payment apps

Cash is difficult to trace and should be counted carefully. Use receipts and more than one person when practical.

For checks and payment apps:

Use a clearly identified recipient.
Avoid several competing payment destinations.
Preserve transaction records.
Explain how the money reaches the beneficiary.
Do not mix personal sales, business revenue, and fundraiser money in the same record without clear separation.

Write the public fundraiser

A Minnesota-specific page does not need to repeat the entire national writing guide.

The public description should state:

Beneficiary's approved public name.
Organizer's name and relationship.
What happened.
What help is needed now.
What donations will support.
Who receives and controls the funds.
How extra funds or changed circumstances will be handled.
Whether contributions are represented as tax deductible.
How meaningful updates will be posted.
One official donation link.

Use How to Write a Fundraiser Story People Trust for the full story template, title guidance, weak-versus-strong examples, and publication checklist.

For the public headline, use the fundraiser title library and 60-character checker.

Launch and promote it in Minnesota

Begin with the people and organizations that already understand the local context:

Family and friends.
Coworkers and employers.
Churches and faith communities.
Schools and alumni networks.
Local businesses.
Service organizations.
Neighborhood groups.
Community foundations or nonprofits that fit the need.
Relevant local creators.
Local newsrooms when the story has a genuine news angle.

Use one consistent public link and one consistent description of who controls the money.

For Minnesota media outreach, use How to Submit a Fundraiser or Community Story to Minnesota Local News to choose an outlet by region and audience. Then use How to Contact Local News About a Fundraiser for the full pitch process.

Do not imply that a business, newsroom, nonprofit, public official, or creator endorses the campaign unless it has clearly agreed.

Compare the GoFundMe description examples for complete standard, concise, and privacy-first wording.

Update donors and handle changes

Post an update when:

A meaningful milestone is reached.
A major expense is paid.
Funds are transferred.
The beneficiary's need changes.
Another source covers part of the need.
The goal changes.
Donations are paused or closed.
An error needs correction.
A follow-up outcome is verified.

Date changing totals. Distinguish:

Goal.
Current amount raised.
Amount transferred.
Amount presented at a dated milestone.
Amount spent or paid.
Verified outcome.

Use How to Keep Donors Updated After a Fundraiser for milestone, delay, correction, outcome, and closing-update templates.

Case study: one Minnesota fundraiser with two connected needs

Katie's public Minnesota Impact story documents a burial need and a transportation barrier within one fundraiser.

The original source recorded that Katie was selling belongings after her mother's death while facing cemetery and burial expenses. It also documented a reported $7,200 vehicle-repair quote and the effect transportation had on returning to work.

A later follow-up documented a $10,000 presentation for burial and car-repair support. The public fundraiser separately recorded $10,267 as of July 16, 2026.

This example illustrates several useful practices:

The fundraiser described two related purposes instead of pretending there was only one expense.
The reported repair quote, presentation amount, fundraiser total, and hoped-for outcomes were kept distinct.
Changing totals carried dates.
The public record did not claim that every final expense had been completed without a verified follow-up.
Sensitive family information was limited.

The case study does not establish who held every dollar, the final allocation of all proceeds, or whether the campaign used every safeguard in this guide. It is included to demonstrate public purpose clarity, dated numbers, and evidence boundaries.

Read Katie's documented burial and car-repair support story

Minnesota named-person fundraiser launch checklist

[ ] Confirm the fundraiser is for a specifically named person or family.
[ ] Get the beneficiary's permission.
[ ] Confirm what details, images, and interviews are approved.
[ ] Verify the practical need proportionally.
[ ] Check for duplicate or overlapping fundraisers.
[ ] Identify the organizer.
[ ] Identify the beneficiary or ultimate recipient.
[ ] Decide who receives and controls funds.
[ ] Decide whether the platform can transfer directly to the beneficiary.
[ ] If the organizer holds funds, choose a separate and appropriate account structure.
[ ] Ask the bank about signers, records, and account requirements.
[ ] Consider two-person approval for organizer-managed withdrawals.
[ ] Define the permitted use categories.
[ ] Disclose the plan for remaining funds.
[ ] Explain whether donations are represented as tax deductible.
[ ] Check tax questions with a qualified professional.
[ ] Check Medical Assistance, SSI, or other benefit questions before a large transfer.
[ ] Set a realistic and explainable goal.
[ ] Use one official donation link.
[ ] Protect the organizer account with multi-factor authentication.
[ ] Prepare a recordkeeping system.
[ ] Write an accurate public story.
[ ] Prepare the first donor update before launch.
[ ] Plan how to pause or close the campaign.
[ ] Keep private records private.
[ ] Correct material errors promptly.

Frequently asked questions

Can I start a fundraiser for a friend or family member in Minnesota?

Yes, a person can organize a fundraiser for a named friend or family member when the person agrees and the chosen platform or payment method supports the arrangement. Clearly identify the organizer, beneficiary, purpose, and money path.

Is a personal fundraiser considered a charity in Minnesota?

The Minnesota Attorney General's 2026 crowdfunding alert distinguishes fundraising for a specific named individual or family from fundraising for a general charitable purpose. A general community campaign can create different duties. This page does not determine every legal obligation for a particular structure.

Do I have to register a personal fundraiser with Minnesota?

Do not assume that every campaign has the same registration status. The named-person versus general-charitable-purpose distinction matters, as do the organizer's activities, compensation, deductions, restrictions, and structure. Use the Minnesota Attorney General's guidance or qualified legal advice for a specific case.

Do I need the beneficiary's permission?

Appropriate permission should come before publicity. Confirm the fundraiser, public story, photographs, interviews, money arrangement, and update plan separately.

Should the beneficiary receive the money directly?

Direct beneficiary control can make the money path simpler, but the person must be willing and eligible to complete the transfer process and should consider tax and benefit questions. Organizer management or direct vendor payment may fit other situations.

Do I need a separate bank account?

Minnesota's named-individual guidance recommends keeping organizer-managed funds separate and discusses a trust or savings account created for the purpose. The correct structure depends on the platform, bank, campaign, and professional advice. Do not call an account a legal trust unless it is one.

Should two people approve withdrawals?

Minnesota guidance says two signatures are a good idea for organizer-managed checks and suggests that one signer not be a relative of the beneficiary. The usefulness and availability of this safeguard depend on the account and payment method.

Are donations to a person tax deductible?

Generally, no. The Minnesota Attorney General and IRS both caution that gifts to individuals are not charitable deductions. Say that clearly rather than implying that every donation is deductible.

Is money raised through crowdfunding taxable?

It depends on the facts. Some contributions may be gifts, and others may be taxable. The organizer, beneficiary, employer involvement, goods or services, reporting forms, and money flow can matter. Keep records and ask a qualified tax professional.

Could fundraiser money affect Medical Assistance or SSI?

It can affect some people depending on the program, eligibility category, income, resources, ownership, and timing. Some Minnesota Medical Assistance categories have asset limits and others do not. SSI recipients must report relevant income and resource changes. Contact the correct agency or benefits professional before assuming there is no effect.

What happens if more money is raised than needed?

Follow the disclosed plan, platform terms, and any legal restrictions. Involve the beneficiary, update donors about a material change, and seek advice before redirecting money to an unrelated person or purpose.

Can I use GoFundMe for someone else?

GoFundMe currently allows an organizer to invite another person as the beneficiary so that person can transfer funds to their own bank account. The organizer can also receive funds in some circumstances. Confirm the current requirements and explain the arrangement publicly.

Can I make the fundraiser private?

A platform may remove a fundraiser from public search while leaving it accessible to anyone with the direct link. Privacy settings reduce discovery but do not make a shared fundraiser confidential.

Can I pay a landlord, funeral home, repair shop, or other provider directly?

Yes, when the beneficiary agrees and the arrangement fits the stated purpose. Direct payment may simplify a specific expense, but keep records and do not ignore related needs the fundraiser also promised to support.

What records should I keep?

Keep the public description, permission notes, launch date, original goal, platform statements, payment records, transfers, invoices, receipts, updates, changes to purpose, and the closing balance. Protect sensitive information.

Does this guide apply to raising money for the community generally?

Open official source

Last verified August 22, 2026

Important limits

This guide provides general educational information. It is not legal, tax, accounting, benefits, medical, banking, or financial advice.

Rules and platform terms can change. The organizer and beneficiary should review current official sources and obtain situation-specific advice where needed.

This page does not guarantee donations, media coverage, tax treatment, benefit eligibility, a platform transfer, or a particular outcome.