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Hi, guzzy. I have a few questions.
You say you host a charity event for a local charity? Do you do that as a part of your business?
Do you receive any payment for hosting the event? Is the payment for your services or only for your expenses in putting together the event? What are your expenses in putting together the event?
I don't do that as part of my business. I'm having an event to celebrate 5 years in business with all the proceeds after expenses going to the charity.
Expenses include renting the venue, paying to have piano tuned, advertising, invitations, maybe some for food. I'm also getting other sponsors to offset the cost, e.g. they pay me $100 to be a co-sponsor of the event.
Who pays you to be a co-sponsor of the event?
Other businesses. So they might pay $100 or $250 and their name will be included in the program brochure or in some other advertising medium for the event. I use the money to offset expenses for the event and ultimately, if I get more in sponsor money than I have expenses the excess is also donated to the charity.
Ultimately, I do not want to make anything on this event.
As long as you are not pocketing any of the funds (whatsoever) from this event, you cannot legally be taxed on anything. Rightfully, the checks for the donations/tickets SHOULD be written directly to the charity. The businesses should be writing the checks to the charity as well, in all honesty. This is the safest way you can make sure you cannot be taxed on any of the funds.