Fundraiser Items Tax Deductible?

[scottcooks]

I've never been asked this before. I don't THINK so, but what do you know? The person wonders if items purchased at a fundraiser are tax-deductible. I think the answer is NO. Is there any percentage of it that is tax-deductible?

 

[pcheflisad]

No, I don't think so. What I've been told is that is goes by the end user. So if the end user is a tax exempt organization, then the order would be tax exempt.

If it is an individual person ordering - they are not tax exempt even if the order is for a fundraiser.

HTH!
Lisa

 

[PCMomto4]

No they aren't tax deductible. Even items you buy at a silent auction at least in the State of Florida aren't tax deductible unless you paid more than the value of the product you are getting. They would have to make a monetary donation directly to the organization for it to be tax deductible.

 

[scottcooks]

Got it. With commission and such, it seemed pretty far "off".

 

[Sshull12]

Its only tax deductible if they pay more than what the item is worth. So if an item has a retail value of $25 and someone pays $35 at a fundraiser for it, then they would be able to deduct $10 on their taxes.

 

[Lisa/ChefBear]

I did a fundraiser for a non-profit and I had a hard time making chairperson understand, YES you do need to have guests pay tax. The way I finally got her to get it was.......

When you go to store for your own uses you MUST pay tax on the purchases.

When you go to store and purchase things for the Non-profits use, then no you do not pay tax.

So the only way there's no tax, is if the Non-profit is purchasing things for their use. But guests of the fundraiser, must pay tax on items.

HTH

Lisa

 

[Sshull12]

I may be reading the question wrong but I read it as asking if they can make a tax deduction on their taxes at the end of the year, not whether or not they pay state/local tax on the purchase.
If its for their taxes at the end of the year when they file with the IRS then they can only deduct the amount the exceeds the value of the item they purchased (as stated in #5 above)
This is the link to the IRS pub in regards to this: http://www.irs.gov/pub/irs-pdf/p526.pdf page 3 example 1 on right side of page shows details. If its in regards to state/local tax on purchase then yes each guest must pay sales tax on the items.
Non profit organizations are exempt from tax on items they purchase and use themselves not on items they purchase to sell for fundraising. So if "Church A" buys a box of 25 chocolates for $25 and plan to sell them for $1 each then at the time of purchase they would pay $25 + sales tax but if "Church A" bought the same box of chocolates to give to the youth in their church to eat after service then they would pay $25 and no tax.

 

[scottcooks]

I understood it as the host telling guests "whatever you buy is tax deductible because it's for a fundraiser". NO - not true.