Mansfield Teacher's Charitable Work Leads To $16K Tax Bill

MANSFIELD, CT — When the pandemic hit last year, a Mansfield teacher stepped up, offering to go grocery shopping for family and friends.

One family reached out to Louis Goffinet saying they were tight on money after being laid off, according to Fox 61. Goffinet started a fundraiser with a $200 goal to help the family. That goal was quickly smashed and people donated generously.

Goffinet eventually raised more than $40,000. He used the funds for 150 grocery trips, 20 gift cards, and Thanksgiving dinners for 30 local families. Goffinet, 27, an eighth grade math and science teacher, called the experience "the most rewarding thing I've ever done," according to CBS News.

Then this year, Goffinet received paperwork that showed he owed more than $16,000 in taxes on the charitable gifts. After receiving the notice, he posted on Facebook that the money he raised was being treated as income. He said the bill was "more than I can reasonably afford to pay alone" and asked for the community's help.

And the community responded with generosity, donating over $13,000. Goffinet also said four people, three of them strangers, told him they would pay the entire amount, according to The CT Mirror.

Fortunately, it turns out he doesn't owe the government after all. After speaking with a local CPA and a New York tax professor, Goffinet was informed that he does not in fact owe taxes on the fundraiser. The tax professionals determined that the $40,000 he raised would be considered a "gift-raising activity" and therefore not taxable.

The money raised to pay the tax bill instead will be used to set up a charity to continue his good work, The CT Mirror reported. With the help of an accounting firm, Goffinet set up a 501(c)3 organization to handle the money sent to cover his debt. Those who sent Goffinet money will be given the option to donate to the organization or get their money back.

Goffinet told CBS News that those who want to raise money for a good cause "to go out and do it—and make sure you are well versed on the tax code."