Donation Funds/Not for profit

Requesting the help of the MT Board for this..

My nephew (almost 2 years old) had a stroke this past sunday and has a very long road ahead of him. I've seen and donated to various funds being shared through twitter and facebook before and am going to look at setting one up for his family. I've seen some services that set up the donations (indiegogo for example) that they just keep a cut for the amount raised. I'm trying to find out what's best as far as taxes/spending limitations on the funds raised.

My sister in law's job was keeping children in her home but once they come home taking care of him will likely be her full time job. So it's safe to assume some of the funds would go to general living expenses (to supplement her income) as well as mounting medical bills.

Thanks for any help