All costs associated with a fundraiser may or may not be taken into account. Where or if they are deducted depends on the type of organization that is holding the event. ie Corporation, Non Profit, Individual. If you give me a little more information, I will provide more detail. Also, I need to know if the fundraiser was the main purpose of the event. Was it a political rally or for girl scouts. Basically, I need the type of organization the fundraiser was held for.
This is a non profit organization. The fundraiser is to raise funds for our scholarships and service programs conducted in the community -- working with students in the school system, mentoring homeless women, educational programs on health issues and a variety of other service projects. It was not a political rally, but a jazz brunch.
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Sorry, I got real busy this week. I want to be clear about this. I'll give an example/
Ticket price is $70.00
Expenses including catering and decorations, etc. = $50 tax deductible amount? $20.00 or $70.00? Second example Ticket = $70 Expenses =catering $30 Tax deductible amount $40 or$70.
The expenses are deductible.
I don't quite understand what you are asking.
Are you asking what the non profit can deduct as an expense or what you can deduct on your personal return for helping with the fundraiser?
Ok, you say all expenses are deductible, it seems. I've been under the impression that for the person purchasing the ticket only the amount the organization declares as deductible can the purchaser use as a tax deduction. So, I'm trying to determine, for the organization determination of what it cn tell the purchaser is tax deductible, is it the full price of the ticket or the price of the ticket less expenses per ticket? In calculating expenses, is it all expenses or just the cost of the meal?
Is the non profit a 501c3
I was under the impression that you were asking what expenses the non profit could use. If a person purchases a ticket for an event like a dinner, it is non deductible as a charitable donation because they are receiving a good for the cost.
The purchaser cannot use any of the cost of the ticket as a deduction.
Only donations can be deducted. This means that there is no exchange. In this case the ticket purchase is for admittance, dinner, entertainment etc. It is not deductible by the purchaser.
Even if the cost of the ticket is greater than the cost of all expenses?
I see. the expenses don't really come into play.
You can deduct the difference in the value received and the value paid.
So if the ticket is $70 and the value of the event is $30, then the deduction is $40. You could use the expenses as a guide, but it is really just a subjective decision.
Thank you. It took us a while, but we finally got there.
Just determine what an average person would pay for a similar event. The difference is then the deductible portion. Here is an example from the IRS.
From Publication 526
You pay $65 for a ticket to a dinner-dance at a church. All the proceeds of the function go to the church. The ticket to the dinner-dance has a fair market value of $25. When you buy your ticket, you know that its value is less than your payment. To figure the amount of your charitable contribution, you subtract the value of the benefit you receive ($25) from your total payment ($65). You can deduct $40 as a charitable contribution to the church.
At a fund-raising auction conducted by a charity, you pay $600 for a week's stay at a beach house. The amount you pay is no more than the fair rental value. You have not made a deductible charitable contribution.
I am sorry. I thought the question was kind of strange. Now I see what you were asking. Sorry, but we did get there.