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Posted by Harlan Lunsford on April 5, 2008, 1:44 pm
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removeps-groups@yahoo.com wrote:
> If you are a team in training athlete, are the contributions you make
> to your own campaign deductible?
>
> Team in training is a program where you perform in an athletic task
> such as biking, swimming, jogging. Friends, family, companies,
> sponsor you. You raise money for leukhemia research. Donations to
> team in training are deductible.
>
> Some events take place in other cities, so part of the money you raise
> is used for hotel, airfare. In any case, part of the money is used to
> pay the experts who train you.
>
> Now some events have a target of 5k or more. If you fall short, the
> organization may ask you for the difference. Say your friends and
> family only gave 4k, then you pay the remaining 1k. So is this 1k
> deductible?
>
> On one hand, it appears that you receive a benefit from the donation
> (such as airfare and hotel), so only the excess above the FMV of this
> benefit is deductible.
>
> On the other hand, say your friends and family sponsored you to the
> tune of 5k. Then all that 5k would be deductible to them. So why
> can't you take a deduction for that 1k. For that matter, you could
> have gifted 1k to your family and they could have donated it and got
> the deduction -- so almost the same result to the IRS.
>
The very first "hurdle" to get over (pun intended) is to determine if
this organization is qualified by IRS to receive contributions.
And the second "long jump" is to insure that who ever "gives" the money
is qualified to do so, and that there are no sham donations.
But if not, just "take it in stride."
I'm done.
ChEAr$,
Harlan Lunsford, EA n LA
--
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