On non-equity based crowdfunding, it is sales income to the recipients just as if you had sold the product. All applicable income and sales taxes apply. For the donor, it is just like they purchased something on Amazon. No deduction and possible sales tax to pay. The only exception is if the receipient is a tax free organization in the US and the donor can claim a charitable deduction (not likely). See, www.ibtimes.com/crowdfunding-income-or-gift-irs-taxes-sec-regulations-could-hurt-startups-innovation-kickstarter