Rainouts and Refunds

[corps-mudgeon]

Maybe I am naive but I thought the thousands of dollars the corps gets from dues pays for busses rolling, food, staff, etc...

For most corps, dues would probably have to be 2-3 times what they are to come close to covering the expenses of drum corps operations.

[SkyRyder_FMM]

If you would like to know if the organization sponsor is a 501c3, simply ask them...if they are passing themselves off as such and aren't, THEY are going to get themselves in a world of trouble with the IRS. Secondly, you don't technically need a receipt unless the donation is more than $250; but you do need something to show the donation was made (if you paid by CHECK, a copy of the cancelled check made out to the organization would suffice; if you paid by credit card, a copy of the monthly statement would qualify). Third, if you purchased a ticket and received nothing of value in exchange for it, it's a DONATION. Purchasing a ticket and deciding not to use it is comparing apples to oranges, you could have gone to the show but chose not to...the show was still performed. All of this, of course, would come down to two issues...does the IRS audit the return, and if so does the IRS agree with the taxpayer's interpretation of the law? The worse case scenario is that the IRS would disallow the deduction, the amount would be added to your taxable income and you would have to pay the tax and interest. We're not talking about somebody that bought out the stadium to re-sell the tickets, we're talking about Joe Fan who probably shelled out $150 or so for some tickets for him and his family.

You did receive something of value - you purchased a ticket for an event that indicated there were no refunds if it rained. I believe you are confusing the rules regarding excess contributions when you benefit (i.e., when you contribute $500 and receive premiums worth say $75 - you can only deduct $425). The purchase of the ticket provides you with a benefit equal to the value of the cost of the ticket. You had the right to use of the ticket, which included a clause regarding rainouts. If it rained, you still received the value of the ticket, thus no deduction. Making decision on whether or not you can skate by an audit is not compliance - it's evasion.