When 88-year-old Ed Bambas began to cry at his grocery store register this week, he had no idea that strangers around the world would change his life.
“I don’t know what to say,” Bambas told Australian social media influencer Sam Weidenhofer (1), who had just tipped him $400. “He will go a long way to help me.”
Within days, that $400 had dropped to more than $1.85 million as of Saturday morning – and counting – raised by tens of thousands of donors from around the world 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 was here, but it’s something dreams are made of,” Bambas told Detroit station WXYZ Friday after being surprised by a ceremonial check (3).
It is a heartwarming story of generosity. But behind the feel-good news is a question few donors may have considered: How much of that $1.85 million will Bambas actually keep?
First, there is the taking of the platform. GoFundMe charges a 2.9% transaction fee plus $0.30 per donation. There is no platform fee for personal fundraisers in the US, but those processing fees add up quickly on a campaign of this size (4).
On $1.85 million, the math looks roughly like this: The percentage fee alone eats up about $53,700. The flat $0.30 per transaction — assuming an average donation of about $25 — adds another $22,000 or so. That’s about $75,000 in processing fees before Bambas sees a dime.
The actual amount may be higher or lower depending on how the donations were distributed (larger individual donations mean fewer flat fees), whether they came from international donors (who may incur additional conversion fees) and how many donors chose recurring contributions (which carry a 5% fee).
Still, Bambas should receive somewhere in the neighborhood of $1.77 million after the GoFundMe cutoff from Saturday morning, a substantial sum by any measure.
Here is where it gets more complicated. Will Bambas pay income tax on his windfall?
The short answer: probably not.
The IRS generally considers donations to personal GoFundMe campaigns to be ‘personal gifts’ rather than taxable income. As long as the donors gave out of generosity, without receiving goods or services in return, the money is not subject to income tax for the recipient.
“Donations made to personal GoFundMes are generally considered ‘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 that exceed $5,000 in a calendar year. Receipt of the form does not automatically mean that he owes taxes, but it does mean that the IRS knows about the money and needs 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 that documentation of all donations and how the funds were used be kept 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 pay actual gift taxes unless their lifetime giving exceeds $13.99 million.
For the vast majority of donors who gave $20, $50, or $100, there are no tax implications, although their contributions are also not tax deductible, as Bambas is not a registered charity. An image of security for his golden years
Meijer, the supermarket chain where Bambas works, has also stepped up, offering him free financial planning help 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 in 88. With proper guidance, Bambas can structure the funds to cover living expenses, medical care and some of those ‘small joys’ that the GoFundMe page mentioned, for the rest of his life.
Bambas’ story came to light because it revealed 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 filed for bankruptcy in 2012. His wife’s illness wiped out what was left. He sold his house. He went back to work.
“No 88-year-old in America should have to work because they have to, and that breaks my heart,” Weidenhofer told WXYZ Detroit.
The $1.85 million raised won’t fix the systemic issues that left Bambas running a cash register at 88. But for one man who just wanted to “live a little bit of the life I was hoping for,” it might be enough.
After payments and careful planning, Bambas should walk away with about $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 try to be myself, with one exception,” said Bambas. “I think my wife sits on my shoulder and helps 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 warranty of any kind.
