How Do I Receive Charitable Donations for Medical Expenses?

Set up a separate bank account for donations.
i Jupiterimages/Comstock/Getty Images

There are a number of paths you can take to accept charitable donations to help you defray medical costs. Ideally, you will provide a way for your donors to get a tax deduction they can use to compensate for their generosity. Consult with a tax attorney if you have any doubts about the avenues you choose to accept donations.

Step 1

Make arrangements with a nonprofit charity that serves families in need or people with your medical condition to receive the payments on your behalf. A charity can accept payments in your name and give donors a tax deduction only when the organization provides services that are similar to your own needs, according to attorneys at Berry Moorman, a firm based in Detroit.

Step 2

Ask your donors to write checks directly to your doctor or medical facility. There is no limit to the amount or number of donations a benefactor can make when the money is paid to a professional medical provider and not given to you first, according to the Internal Revenue Service.

Step 3

Provide your account number at the medical facility to donors so that your patrons can direct the funds to the proper account.

Step 4

Set up an account at a local bank to accept donations for your medical expenses. Talk to your local banker about providing a no-fee checking or savings account for the direct purpose of collecting donations. According to Bankers Online, banks prefer to provide this service to known account holders who have a relationship with the bank.

Step 5

Provide a list of people who have access to the account along with their contact information and Social Security numbers to the bank. Also give to the bank staff a detailed summary of the purposes of the account as well as contingency plans for the money if your needs change.

the nest