When 88-year-old Ed Bambas broke down in tears at the grocery store checkout this week, he had no idea he would change the lives of strangers around the world.
“I don’t know what to say,” Bambas said to Australian social media influencer Sam Weidenhofer (1), who tipped him $400. “It will go a long way to help me.”
Within days, that $400 snowballed to more than $1.85 million as of Saturday morning, raised (and counting) by tens of thousands of donors around the world who were touched by the army veteran’s story and donated to a GoFundMe page. To make ends meet, Bambas works eight hours a day, five days a week, at a Meijer supermarket in Michigan.
Facing a ceremonial check on Friday, Bambas told Detroit station WXYZ, “I wish my wife was here, but this is the stuff of dreams” (3).
This is a heartwarming story of generosity. But behind the feel-good headlines lies a question few donors might consider: How much of that $1.85 million will stay with Bambas?
First of all, there is the attitude of the platform. GoFundMe charges 2.9% plus a $0.30 processing fee per donation. There are no platform fees for personal fundraisers in the US, but these transaction fees quickly add up to a campaign of this size (4).
The math for $1.85 million roughly looks like this: The fee percentage alone works out to about $53,700. A flat $0.30 per transaction (assuming the average donation is around $25) adds another $22,000. That means nearly $75,000 in transaction fees before Bambas sees a dime.
The actual amount may be higher or lower depending on how donations are distributed (larger individual donations mean fewer flat fees), whether any come from international donors (which may require additional conversion fees), and how many donors opt for recurring contributions (which carry a 5% fee).
Still, Bambas will receive about $1.77 million after the GoFundMe cut Saturday morning; This is a significant amount in every respect.
This is where things get even more complicated. Will Bambas unexpectedly owe income taxes?
Short answer: probably not.
The IRS generally considers donations to personal GoFundMe campaigns as ‘personal gifts’ rather than taxable income. As long as donors donate their generosity without receiving goods or services in return, the money is not subject to income taxes for the recipient.
“Donations to personal GoFundMes are generally considered ‘personal gifts’ and are mostly not taxed as income in the United States,” the GoFundMe help center states (5).
But Bambas will likely receive an IRS Form 1099-K from GoFundMe reporting payments exceeding $5,000 in a calendar year. Receiving the form does not automatically mean that taxes are owed, but it does mean that the IRS knows about the money and must properly document that the funds are gifts and not income (6).
Tax experts recommend that beneficiaries of large crowdfunding campaigns consult an expert and keep detailed records. The IRS recommends keeping all donations and documentation of how the funds were used for at least three years.
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Interestingly, the tax burden (if any) falls on the giver, not the buyer.
Individual donors who give more than $19,000 to Bambas (before the 2025 annual gift tax) will technically be required to file a gift tax return with the IRS. But even then, unless his lifetime gifts exceed $13.99 million, he will almost certainly owe no actual gift taxes.
There are no tax implications for the vast majority of donors who donate $20, $50 or $100, but because Bambas is not a registered charity, their contributions are not tax deductible either. A safety net for the golden years
Meijer, the supermarket chain where Bambas works, also took action, offering him free financial planning assistance for life.
“We are providing Ed with free financial planning assistance for life to help him make the most of these generous contributions, and we will continue to support him as a valued member of our team,” the company said in a statement (7).
This is good news, because dealing with an unexpected unexpected event, especially at 88, requires careful planning. With the right guidance, Bambas can structure the funds to cover living expenses for the rest of his life, medical care, and some of the “little joys” mentioned on his GoFundMe page.
Bambas’ story resonated because it revealed a harsh truth: The 88-year-old veteran, who served his country and worked for General Motors for decades, lost his pension when the automaker declared bankruptcy in 2012. His wife’s illness consumed what he had left. He sold his house. He returned 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 will not fix the systemic problems that caused Bambas to work the cash register at age 88. But for a man who wants to “somehow live the life I hope for,” this may be enough.
After fees and careful planning, Bambas should eventually walk away with about $1.77 million, enough to retire and visit his wife’s grave every day, as he told reporters he was trying to do.
“I just try to be myself, with one exception,” Bambas said. “I think my wife is sitting on my shoulder and helping me do the right thing (8).”
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TikTok (1); Go to 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 any warranty.
