If someone orders a product, such as candy, wrapping paper, etc., from a fundraiser designed to raise funds for a non-profit organization, is the amount spent for those products tax deductible? Or is only money contributed for nothing in return tax deductible?
2007-09-08 11:50:12 · 9 answers · asked by The_Answerer 1 in Business & Finance ➔ Taxes ➔ United States
50% of the sales price is donated to the charity, so could the purchaser deduct the 50% overage on the price of their item(s) they bought?
2007-09-08 12:55:59 · update #1
You would be able to deduct the difference between what you paid, and what you received was worth as a charitable contribution. For example, if you paid $50 and you received items worth $25, you would have a deduction of $25.
2007-09-08 12:42:10 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Only to the extent that the price paid exceeds the value of the item purchased. AND only if the item is actually sold by the registered charity. If it's sold by a commercial firm, as many are, there is no deduction at all.
For example, Girl Scout Cookies sell for $5 a box locally. Similar cookies retail for about half that. You could deduct $2.50 per box of Girls Scout Cookies as a charitable donation as you are paying more than the cookies themselves are worth.
2007-09-08 11:55:37 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
I would be very careful of the "to the extent that the price paid exceeds the value of the item purchased." You had better be prepared to show the IRS the actual market value of the product you purchased.
Also, if you don't itemize your taxes on Schedule A, then you can't claim charitable contributions anyhow.
The IRS isn't going to come after you for a few bucks you claim you gave to the Girl Scouts. My guess is that many of the claimed contributions are fictitious.
2007-09-11 17:18:14 · answer #3 · answered by Let me steer you 7 · 0⤊ 0⤋
No, if you werre buying something like the candy or wrapping paper, then it isn't deductible. Sometimes a donation can be partly deductible - for example, public TV stations often give premiums to donors - if you donate $200 and get a premium worth $50, then your deduction is $150.
2007-09-08 12:56:08 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
Items purchased from a qualified organization, for the amount in excess of the fair value is tax deductible as an itemized deduction.
2007-09-08 12:13:09 · answer #5 · answered by iocook 2 · 0⤊ 0⤋
The charity should state what portion of the price is a donation and deductable and what the value of the product is. Charities are required to notify you of your donation. Don't assume you can just guess at what is value and what is donation.
2007-09-08 17:07:20 · answer #6 · answered by towanda 7 · 0⤊ 0⤋
The Church itself is tax exempt which ability the revenue from the cafe flow into their universal fund and don't flow into the wallet of shareholders like with a for-income eating place. you would be unable to deduct the money you spent because of the fact it wasn't a donation, it replaced right into a purchase order.
2016-12-16 15:05:44 · answer #7 · answered by Anonymous · 0⤊ 0⤋
what about school fundraisers? you purchase food, wrapping paper and spend $250.00 - is that deductible?
2014-10-10 07:01:30 · answer #8 · answered by Liz 1 · 0⤊ 0⤋
No becasue you got something for the money although it is of course overpriced.
2007-09-08 11:56:31 · answer #9 · answered by Anonymous · 0⤊ 1⤋