FundSvcs Community

 View Only

  • 1.  Tax letters for event tickets

    Posted 10-30-2024 03:26 PM

    Hello! 

    I'd like to get your input on issuing tax receipts for fundraising events that include a non-deductible portion. Our events team is very insistent on including all ticket information separately in the tax letter-the full ticket amount, the tax-deductible portion, and the non-deductible portion. Is this approach standard, or would it be more appropriate to include only the tax-deductible portion?

    Additionally, how do you handle tax receipts for event tickets purchased using stocks?

    Thanks in advance for your guidance on this.



    ------------------------------
    Marta Kostrzewa
    Director of Finance
    Pratt Institute
    mkostrze@pratt.edu
    ------------------------------


  • 2.  RE: Tax letters for event tickets

    Posted 10-30-2024 03:34 PM
    Per IRS regulations (see Publication 1771) you must describe the transaction in full. The total amount paid, the benefits/tickets received and their value, and either the net deductible amount or a statement that the deduction is limited to the difference between the two.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 3.  RE: Tax letters for event tickets

    Posted 10-30-2024 03:45 PM
    Thank you! And for stock gifts we would include the same ticket information, just not the value of the stock? 


    --

    Marta Kostrzewa| Director of Finance (she/her/hers)

    Institutional Advancement

    200 Willoughby Avenue | Myrtle Hall 3W | Brooklyn, NY 11205

    phone: (929)-354-5047 | fax: | mkostrze@pratt.edu






    Original Message


  • 4.  RE: Tax letters for event tickets

    Posted 10-30-2024 03:52 PM
    That is also correct-only the number of shares and the name of the stock.

    However, with stock, other tax consequences are associated with obtaining tickets/benefits. Charitable donations of securities avoid capital gains taxes (in most cases). Those taxes cannot be avoided when making a purchase. Therefore, if you have a donor contemplating using stock in a transaction like this, I suggest you advise the donor to seek guidance from their tax professional first.

    Also, remember that a donor cannot use a DAF or private foundation in this manner. The payment must be from personal (or corporate) funds only.

    John
    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





    Original Message


  • 5.  RE: Tax letters for event tickets

    Posted 10-30-2024 04:19 PM
    Thank you so much!

    --

    Marta Kostrzewa| Director of Finance (she/her/hers)

    Institutional Advancement

    200 Willoughby Avenue | Myrtle Hall 3W | Brooklyn, NY 11205

    phone: (929)-354-5047 | fax: | mkostrze@pratt.edu






    Original Message


Related Content