Strangers worldwide react to plight of 88-year-old Michigan veteran by gifting millions. But will he get to keep it all?

Core Insights - The article discusses the financial implications for Ed Bambas, an 88-year-old veteran who raised approximately $1.85 million through a GoFundMe campaign, highlighting the amount he will actually receive after fees and potential tax considerations [5][14]. GoFundMe Fees and Contributions - GoFundMe charges a transaction fee of 2.9% plus $0.30 per donation, which can significantly reduce the total amount received by the recipient [4][3]. - Based on the total raised of $1.85 million, processing fees could amount to approximately $75,000 before Bambas receives any funds [3][4]. Tax Considerations - Donations to personal GoFundMe campaigns are generally considered 'personal gifts' and are not subject to income tax for the recipient, provided that donors do not receive goods or services in return [7][10]. - Bambas will likely receive an IRS Form 1099-K for payments exceeding $5,000, which requires him to document that the funds were gifts, not income [8][9]. Donor Tax Implications - Individual donors who contribute more than $19,000 may need to file a gift tax return, but most small donors will not face tax implications [10][11]. Support from Employers - Meijer, the supermarket chain where Bambas works, is providing him with free financial planning assistance for life to help manage the funds effectively [12][11]. Broader Context - Bambas' story highlights systemic issues faced by elderly individuals, particularly veterans, who may struggle financially despite a lifetime of work [13][14]. - The funds raised may not resolve the underlying systemic problems but could provide Bambas with a better quality of life and the ability to retire [14].