When 88-year-old Ed Bambas broke down in tears at his grocery store register this week, he had no idea that strangers from around the world were about to 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. “It will help me a lot.”
Within days, that $400 turned into more than $1.85 million by Saturday morning — and counting — raised by tens of thousands of donors around the world who were moved by the Army veteran’s story and donated to a GoFundMe page (2). Bambas worked 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 what dreams are made of,” Bambas told Detroit station WXYZ on Friday after being surprised with a ceremonial check (3).
It’s a heartwarming story of generosity. But behind the wellness headlines is a question few donors have considered: How much of the $1.85 million will Bambas actually get to keep?
First, there is the platform’s point of view. 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).
At $1.85 million, the math goes something 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 could be higher or lower, depending on how the donations were distributed (larger individual donations mean fewer flat fees), whether any came from international donors (who may incur additional conversion fees), and how many donors opted for recurring contributions (which carry a 5% fee).
Still, Bambas should receive somewhere in the neighborhood of $1.77 million after Saturday morning’s GoFundMe cut, a substantial amount by any measure.
This is where it gets more complicated. Will Bambas owe 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 to be ‘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 1099-K form from GoFundMe, which reports payments that exceed $5,000 in a calendar year. Receiving the form doesn’t automatically mean they owe taxes, but it does mean the IRS knows about the money and will need to properly document that the funds were gifts, not income (6).
Tax experts recommend that beneficiaries of large crowdfunding campaigns consult with a professional and keep detailed records. The IRS recommends keeping documentation of all donations and how the funds were used for at least three years.
Read more: Here are the 5 market moves you can’t ignore in 2026 – and what savvy investors are doing now to prepare
Interestingly, the tax burden – if any – falls on the donors, not the recipient.
Individual donors who gave more than $19,000 to Bambas (excluding annual gift tax in 2025) would technically have to file a gift tax return with the IRS. But even then, they almost certainly won’t owe real gift taxes unless their lifetime giving exceeds $13.99 million.
For the vast majority of donors who contributed $20, $50 or $100, there are no tax implications, although their contributions are not tax deductible either, as Bambas is not a registered charity. A safety net for his golden years
Meijer, the supermarket chain where Bambas works, has also stepped in, offering her free financial planning assistance for life.
“We are offering Ed 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 valuable member of our team,” the company said in a statement (7).
That’s good news, because managing a windfall requires careful planning, especially at age 88. With proper guidance, Bambas could structure the funds to cover living expenses, medical care and some of those “little joys” mentioned on the GoFundMe page for the rest of his life.
Bambas’ story resonated because it laid bare 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 secured what was left. He sold his house. He returned to work.
“No 88-year-old man in America should have to work because he needs to, and that breaks my heart,” Weidenhofer told WXYZ Detroit.
The $1.85 million raised won’t fix the systemic problems that left Bambas working at a cash register at age 88. But for a man who just wanted to “somewhat live the life we hoped for,” it might be enough.
After taxes 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,” Bambas said. “I think my wife stands on my shoulder and helps me do the right thing (8).”
We only rely on verified sources and credible third-party reports. For details, see our ethics and editorial guidelines.
TikTok (1); GoFundMe (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. Offered without warranty of any kind.
