When having a charity event can you keep a fee?

Question

If a business throws an annual charity event, is it acceptable to keep a percentage of the money raised as a fee to help cover employee wages and so forth for the time spend planning and for travel costs? For example if $100,000 were raised, could the company keep a percentage?

Answer 1

Yes they can as long as the fee is for services and they do not donate the time and expenses to the charity (i.e. cannot deduct it on their taxes). I will see this more as an ethical issue than a business issue. If I throw in a charity even I will usually donate my time and expenses (or at least only ask for reimbursement at cost). Any charity event very often requires outside services such as an auctioneer for example. Someone has to pay the auctioneer. The net proceeds after expenses is what goes to the charity.

Answer 2

You may keep what is needed to cover your expenses, such as extra labor hired from a staffing service, for example, the cost of food , printing, postage, a reasonable amount for travel, ( gas, tolls)
but to keep anything in addition, such as a fee, you're on shaky ground and might not survive an audit. I wouldn't do it.

Answer 3

All expenses incurred in running the charity event are deducted from the amount raised. That would include food and beverage costs, wait staff, rentals, etc.