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 recently tipped him $400. “It’s going a long way to help me.”
Within days, that $400 had grown to more than $1.85 million as of 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 the GoFundMe page (2). Bombas has been working eight hours a day, five days a week at a Meijer supermarket in Michigan.
“I wish my wife was here, but this is something that dreams are made of,” Bombas told Detroit station WXYZ on Friday after being surprised with the official check-in (3).
This is a heartwarming story of generosity. But behind the feel-good headlines is a question some donors may be wondering: How much of that $1.85 million will Bamba actually get to keep?
First, there’s the tech of the platform. GoFundMe charges a transaction fee of 2.9% plus $0.30 per donation. There are no platform fees for individual fundraisers in the US, but those processing fees add up quickly in a campaign of this size (4).
At $1.85 million, the math looks roughly like this: the percentage fee alone eats up $53,700. A 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 Bombas sees a dime.
The actual amount depends on how the donation is distributed (larger individual donations mean lower fees), whether they come from international donors (which may incur additional conversion fees) and how many donors have opted for recurring contributions (which incur a 5% fee).
Still, the Bambas should have received somewhere in the neighborhood of $1.77 million after the GoFundMe cut by Saturday morning, which is a substantial amount by any measure.
Here is where it gets more complicated. Will Bombas pay income tax on their windfall?
Short answer: probably not.
The IRS generally considers donations to individual GoFundMe campaigns to be ‘personal gifts’ rather than taxable income. As long as donors give generously, without receiving goods or services in return, the money is not subject to income tax for the recipient.
“Donations to individual GoFundMes are generally considered ‘personal gifts’ that are not taxed as income in the United States,” GoFundMe explains in its Help Center (5).
However, Bambas will receive an IRS Form 1099-K from GoFundMe, which reports payments of more than $5,000 in a calendar year. Receiving the form does not mean he owes taxes, but it does mean that the IRS knows about the money and must correctly 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 recommends maintaining documentation of all donations and how the funds were used for at least three years.
Read more: Here are 5 market moves you can’t ignore heading into 2026 — and what savvy investors are doing now to prepare
Interestingly, the tax burden—if any—falls on the givers, not the receivers.
Individual donors who give more than $19,000 to Bombas are technically required to file a gift tax return with the IRS. But even then, they almost certainly won’t pay actual gift taxes until their lifetime exceeds $13.99 million.
For many donors who chip in $20, $50, or $100, there are no tax implications, although their contributions are also not tax-deductible, since Bambas is not a registered charity. A safety net for her golden years
Meijer, the supermarket chain where Bombas works, has even stepped up to offer him free financial planning support for life.
“We are providing Ed with no-cost financial planning support 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 storm requires careful planning, especially at age 88. With proper guidance, Bambas can structure a fund to cover living expenses, medical care and some of the ‘small pleasures’ the GoFundMe page mentions for the rest of his life.
Bombas’ story resonated because it exposed a harsh reality: An 88-year-old veteran who served his country and worked for General Motors for decades lost his pension in 2012 when the automaker declared bankruptcy. His wife’s illness reduced 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 solve the systemic problems that left Bombas working the cash register at 88. But it might be enough for someone who wants to “live somewhat of the life I hope to live.”
After fees 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,” Bombas said. “I think my wife sits on my shoulder and helps me do the right thing (8).”
We rely only on vetted sources and reliable third-party reporting. For details, see our editorial ethics and guidelines.
Tiktok (1); Go 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.
