bstar82 Posted February 28, 2006 Share Posted February 28, 2006 Okay, Here's my story. In the past, I have donated sums of money to certain corps and to Friends of DCI. I do understand when I receive a gift for my donation i.e. tickets, CD's etc.. that the value of these gifts must be subtracted and the remaining portion I can write off on my taxes. My question is, how does this apply when I choose to help out a certain member of a corps who is having a financial crisis? I would like to help them with their tour fees and dues. What documentation should I request from the corps other than a receipt? And for their non profit status to be considered valid, do I need to make a check out to the corps and then state where and who that money is be earmarked for? Since I do not want any gifts in return, can I deduct the entire amount for my taxes? Any help would be appreciated. Thankx Quote Link to comment Share on other sites More sharing options...
Iplaytimpani Posted February 28, 2006 Share Posted February 28, 2006 If anyone knows this answer, please reply! As a member searching sponsorship, this information would greatly help me out as well! Quote Link to comment Share on other sites More sharing options...
BradF Posted February 28, 2006 Share Posted February 28, 2006 I am certainly not a tax expert, and someone may come on here and correct me. But, my understanding is that a donation that benefits a specific person is not tax deductible. So, a donation to pay part of John Q Tenor's dues is not tax deductible, but a donation to a general scholarship fund is (the person who receives the scholarship is chosen through some other process). The reason is that a donation for a specific person's dues isn't really a donation to the organization. It's a donation to the person. Brad Quote Link to comment Share on other sites More sharing options...
Carl306 Posted February 28, 2006 Share Posted February 28, 2006 You can probably get around the whole situation by donating the money to the corps, and requesting it to be specifically put towards that certain members tour fees. I don't know for certain if that would work, but I'm sure whichever corps the member belongs to will be willing to help you out in that aspect. Quote Link to comment Share on other sites More sharing options...
bill Posted February 28, 2006 Share Posted February 28, 2006 (edited) I am certainly not a tax expert, and someone may come on here and correct me. But, my understanding is that a donation that benefits a specific person is not tax deductible. So, a donation to pay part of John Q Tenor's dues is not tax deductible, but a donation to a general scholarship fund is (the person who receives the scholarship is chosen through some other process).The reason is that a donation for a specific person's dues isn't really a donation to the organization. It's a donation to the person. Brad Brad, with all due respect, that may be incorrect, inasmuch (as example) a person can give to the United Way and then specify which nonprofit within the United Way they would like it to go to. Or a corporation can donate funds to be targeted directly to specfic needs to the corps, (i.e) corporation x would like to donate x amount of dollars to fund new drums, etc. A person can donate and specify they want it to offset the educational needs of this X named student. Fully permissable to the best of my knowledge. Non-Profit Rule #1 Never turn down legit money/funding...make it happen. Non-Profit Rule #2 See Rule #1 Edited February 28, 2006 by bill Quote Link to comment Share on other sites More sharing options...
lisard5 Posted February 28, 2006 Share Posted February 28, 2006 Whoohoo Tax question . . . ok sorry I'm just in the middle of 65 hour work weeks until April 15th so I get excited when its actually a fun question! It is definately deductible BUT only if you give it to the group directly and not the individual. I'm sure the corps can give you whatever letter or documentation. Its ok if its for a certain member but the check has to be written to the corps itself. Oh and just to make sure I was right I just checked with my manager :) Ok back to the world of "real" tax work . . . :) Quote Link to comment Share on other sites More sharing options...
BradF Posted February 28, 2006 Share Posted February 28, 2006 (edited) Edit: someone with tax knowledge answered the question. Edited February 28, 2006 by BradF Quote Link to comment Share on other sites More sharing options...
BradF Posted February 28, 2006 Share Posted February 28, 2006 (edited) As all good non-profits write on their materials. Consult your tax advisor. ;) Edit: Guess I was right after all. Edited March 1, 2006 by BradF Quote Link to comment Share on other sites More sharing options...
lisard5 Posted February 28, 2006 Share Posted February 28, 2006 This was posted while I was writing my last post. I guess I was wrong. But, as all good non-profits write on their materials. Consult your tax advisor. ;) Exactly :) Oh and I can totally understand why you would think the way you do. However, the dues go to help the corps ultimately. Even if it helps the kid out by them not having to pay for themselves, the corps is the one actually using the funds :) Quote Link to comment Share on other sites More sharing options...
bstar82 Posted February 28, 2006 Author Share Posted February 28, 2006 Exactly :) Oh and I can totally understand why you would think the way you do. However, the dues go to help the corps ultimately. Even if it helps the kid out by them not having to pay for themselves, the corps is the one actually using the funds :) Thank you all for your help. I'll check with the corps themselves. I think my other option could have been to give the money as a one time gift. I think there is a provision somewhere along those lines that allow you to give up to a certain amount of money to anybody you deem without the possibility of being taxed? Not sure on that but thanks again!! Quote Link to comment Share on other sites More sharing options...
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