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Gov. Northam urges IRS to make donations to Virginia Beach tragedy fund tax deductible

Northam said the IRS has not yet certified that contributions to the Fund, reaching more than $3 million, will be tax-deductible.

VIRGINIA BEACH, Va. — Governor Ralph Northam on Tuesday issued a proclamation recognizing that the Virginia Beach Tragedy Fund seeks to perform an essential government function and urged the Internal Revenue Service (IRS) to follow suit.

The Fund, which was established by United Way of South Hampton Roads in partnership with the City of Virginia Beach, must receive this designation to confirm that donations to the Fund will be tax-deductible.

RELATED: Virginia Beach Tragedy Fund being split for families of victims

“Members of my administration have been in close and frequent contact with officials from the City of Virginia Beach and have offered to assist the victims and families affected by this senseless tragedy,” said Governor Northam. “As a result, I am issuing a proclamation that the Virginia Beach Tragedy Fund seeks to perform an essential government function, and I urge the Internal Revenue Service to find the same. The families of the victims and those injured in the tragic shooting in Virginia Beach rely upon this critical financial assistance and we must ensure they are receiving the support they deserve.”

Congresswoman Elaine Luria requested clarification from the Internal Revenue Service (IRS) about donations made to the Virginia Beach mass shooting victims. The agency confirmed that "individuals receive … from members of the public in response to a disaster or emergency hardship” are not considered taxable income for recipients. 

Commissioner Rettig responded in a letter dated June 13: “Payments that individuals receive, directly or indirectly, from members of the public in response to a disaster or emergency hardship are considered gifts and are excluded from the gross income of the recipients under Section 102 of the Internal Revenue Code.” 

Northam said the IRS has not yet certified that contributions to the Fund, which have come from thousands of individuals, reaching more than $3 million, will be tax-deductible.

The United Way of South Hampton Roads, who is collecting donations for the victims and their families, said the donations made might not be able to be tax-deductible. Click here to donate or text the keyword VABEACH to 41444.  

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