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  • 1.  Prize Money Donations

    Posted 03-01-2023 10:20 AM

    Hi all, 

    Can someone please clarify for me where prize money donations fall? We are an art school and we have student exhibitions where individuals can donate money for "named prizes." In some cases, they can pick the student who receives the award. There has been much confusion over whether this counts as a tax deductible donation or not. 



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    Bethany W
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  • 2.  RE: Prize Money Donations

    Posted 03-01-2023 10:30 AM
    Only when a "prize" is awarded voluntarily to the organization can it be counted/recognized. If the prize goes to a specific person or group, it is not a gift.

    See IRS Publication 526.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


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