When you’re dealing with a personal injury, it’s common to face unexpected financial challenges. Medical bills, lost wages, and other expenses can quickly add up, leading many people to turn to crowdfunding platforms like GoFundMe for help with paying them. But if you’re also pursuing a personal injury claim, you might wonder: Will these donations affect my case, specifically in a negative way? The short answer is no, not if you use these often-helpful platforms correctly. But using them correctly in terms of a personal injury case has nuances that are important to understand.
Q: How do insurance companies view crowdfunding donations?
A: Insurance companies may scrutinize your crowdfunding campaign. They might try to argue that you’re receiving money from another source and, therefore, don’t need as much compensation. However, they legally can’t reduce your claim based on the donations you receive through crowdfunding. That said, still be very cautious about what you post on your crowdfunding page that could be used to claim otherwise.
Q: What does the content of my crowdfunding campaign say about my personal injury claim?
A: Anything you digitally write, any photos you share, and any updates you post on a public platform can be used by the insurance company to challenge your claim, whether the content is on social media or on a crowdfunding platform. So whatever you post there can often publicly demonstrate how you are living your life. For instance, if you post a photo of yourself engaging in physical activity, the insurance company might try to argue that your injuries aren’t as severe as you claim. Before you start or contribute to a crowdfunding campaign, it’s crucial to consult with your attorney and get advice on how best to proceed.
Q: Are there legal protections for crowdfunding donations in personal injury cases?
A: Yes, there are some legal protections in place for the money received via crowdfunding and how that does or does not relate to money to be awarded to you via your personal injury claim. Some states have what’s known as a “collateral source rule.” This rule prevents insurance companies from reducing the amount they owe to you based on compensation you’ve received from other sources, like crowdfunding donations. However, this rule varies from state to state, so it’s essential to understand how it applies to your case.
Even if you’re legally protected, keep in mind that crowdfunding platforms usually take a percentage of the donations as a fee. This means that the amount you actually receive might be less than what was donated, which could still impact your financial situation during the course of your case.
Q: What should I do if I receive donations while pursuing a personal injury claim?
A: The most important thing you can do is to be transparent with your attorney. Let them know about any crowdfunding campaigns or donations you receive as soon as possible. Your attorney needs to have a complete picture of your financial situation to best represent you.
Additionally, it’s a good idea to have a trusted friend or family member create and manage the crowdfunding campaign on your behalf. This approach can help minimize the appearance that you’re trying to exploit the situation for financial gain. It also creates a buffer between you and the donations, which can be helpful if any insinuating questions arise during your case.
Q: Can I use crowdfunding donations for any purpose without affecting my compensation?
A: While you might be tempted to use crowdfunding donations for various needs, it’s wise to use the funds for their intended purpose, typically to cover medical bills, living expenses, or other direct costs related to your injury. Misusing these funds could raise questions about your overall financial needs and intentions, thus potentially complicating your case.
Only use the funds for the purposes outlined above, and keep detailed records of how you use the funds. This will help you demonstrate that the donations were used appropriately and support your claim for compensation. It also protects you if the insurance company tries to argue that you used the funds irresponsibly.
Here is a quick checklist of steps to abide by in order to help minimize any potential negative impact of crowdfunding on your personal injury claim:
- Consult with your attorney. Before starting or promoting a crowdfunding campaign, talk to your attorney. They can provide guidance on how to proceed without jeopardizing your case.
- Be transparent. Keep your attorney informed about all donations and provide them with access to the campaign details. Transparency will help them represent you more effectively.
- Use funds appropriately. Stick to using the donations for their intended public purpose. Avoid spending the money you receive on unrelated expenses, as this could raise red flags.
- Keep detailed records. Document every donation and how the funds are spent. This will be valuable if any related questions arise during your case.
- Let someone else manage the campaign. Have a trusted friend or family member manage the crowdfunding campaign on your behalf. This can help avoid the appearance of a “money grab” and keep you focused on your recovery.
- Avoid oversharing. Be cautious about the information you share on the crowdfunding platform. Just like with social media, anything you post can be used against you by the insurance company.
Crowdfunding can be a helpful tool during a difficult time, but it’s essential to approach it carefully when you’re also pursuing a personal injury claim. By following the steps outlined above and working closely with your attorney, you can help ensure that your fundraising efforts don’t negatively impact your case. Remember, transparency and communication with your legal team are key to navigating this complex situation successfully.