Raise Tax-Deductible Funds For A Non-Profit

Indiegogo is offering a 25% reduction of our platform fees for any campaign that is raising funds for a nonprofit institution registered as 501(c)(3) in the United States. Contributions to these campaigns will be processed by FirstGiving and will be tax deductible.

Campaigns that are set up to raise funds on behalf of a 501(c)(3) nonprofit organization will have a "Verified Nonprofit Campaign" badge placed on the campaign page to certify to contributors that funds will go directly to a verified nonprofit.

What is a 501(c)(3)?

The IRS defines 501(c)(3) exemption requirements here. In general, this exemption is applied to not-for-profit organizations (scientific, charitable, educational, religious, etc.) that must be registered and verified by the US Government through the IRS. Please note that 501(c)(3) tax exemptions and deductions are only available in the United States.

How do I set up my campaign to offer tax deductions?

U.S. tax laws require all tax-deductible contributions to go directly to a 501(c)(3) organization. If you'd like to ensure that your campaign's funds are going directly to your nonprofit organization in order to offer tax deductions to your contributors, you must complete the following:

  • Go to your Campaign Homepage and click on the drop down menu "Manage Campaign"
  • Click “Edit”
  • Click the “Get Started” tab
  • When asked “which person or organization will receive the funds from your campaign,” select “a nonprofit institution registered as 501(c)(3) in the United States.”
  • Click the SAVE button. You'll be able to select your specific nonprofit organization later in the campaign creation process. If you want to jump directly to the section where you can select your specific organization:
  • Go to your Campaign Homepage and click on the drop down menu "Manage Campaign"
  • Click Edit
  • Click on the fourth tab that says, "Get Funded!"
  • Under "How You Get Funded", you will find a field where you can look up your specific nonprofit by EIN or name. We recommend searching by EIN, as your organization’s official title may be different from its colloquial name.
  • Once you have found your organization, click the SAVE button

Note: Once you have saved this selection, your campaign will be linked to that nonprofit's account and all funds will be sent directly to the nonprofit. Your campaign will also be automatically set up with a flexible funding campaign structure, and you will be able to receive contributions via direct credit card only. See our Help article on Fixed vs. Flexible Funding for important information on what it means to run a flexible funding campaign: Fixed vs. Flexible Funding.

You will not be able to change your campaign's linked nonprofit organization once your campaign is live.

If you don’t have a connection to the nonprofit organization that you'd like to link to your campaign, we recommend that you contact the organization first, to make sure that your funds will be used as intended.

What if my non-profit is not listed in the database?

The nonprofit organization you want to raise funds for on Indiegogo must have 501(c)(3) status in the United States in order for your campaign to receive our nonprofit pricing and features.

If you are not able to find your nonprofit organization by EIN, your organization may not yet be listed in our payment processor's nonprofit database. Please contact FirstGiving (nonprofits@firstgiving.com), our nonprofit payments processor, with your Letter of Determination to be added to our processor's database.

How do contributors receive a tax deductible receipt?

When users contribute they will receive an email from FirstGiving, our nonprofit payments processor, confirming the tax-deductible status of their contribution. Depending on the organization, the beneficiary nonprofit may issue a separate tax receipt as well.

When will my nonprofit organization receive the funds my campaign raises?

FirstGiving, our nonprofit payments processor, disburses funds directly to the nonprofit organization on a monthly or weekly basis. FirstGiving's default method of payment is a monthly check, which will be sent out the middle of each month for the previous month’s total. In other words, if your campaign receives its first contribution in January, the first check will not be sent out until mid-February.

The nonprofit will be given the option to either continue receiving funds on a monthly basis or to switch to a weekly electronic funds transfer. If the nonprofit decides to set up the weekly electronic funds transfer, funds will be direct-deposited into the nonprofit's account each week.

If your nonprofit campaign meets its funding goal, your organization will receive your campaign's 3.75% completion bonus after your campaign deadline.

How do fees work for 501(c)(3) non-profit campaigns?

All campaigns on Indiegogo are charged the following fees:

  1. Indiegogo fee: Indiegogo's platform fee, which depends on whether or not you meet your goal
  2. Third party fees for payment processors (such as PayPal or credit card processor)

For more information about how fees typically work on Indiegogo, please see: Fees & Pricing.

For campaigns that are linked to a 501(c)(3) nonprofit, your campaign is automatically set up with our reduced nonprofit fee structure. Any funds your campaign receives will be charged 6.75% by Indiegogo as our platform fee (75% of our usual 9% platform fee), and 4% by FirstGiving as their payment processing fee. If your campaign meets its funding goal, we will reimburse you 3.75% of your campaign's funds as a completion bonus, so that your net platform fee is 3% (75% of our 4% platform fee).

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