Charitable contribution?

[Bill Tubbs]

Had a couple people ask this question this year...

In order to participate in a Run/Walk or Bicycle event, the taxpayer not only collects contributions from friends/neighbors but also must pay an entrance fee. The money collected is charitable contributions for the friends that gave the money, but what about the entrance fee? Does it matter if the charity itself puts on the event, or if a local business(es) put on the even but they say that it's a benefit for charities?

Any insight would be appreciated.

Bill

[Gretel]

I would ask the charity to give a receipt. They should know. Since T/P doesn't get anything in return I would think it is a donation.

[BOB W]

Don't forget.....

...... about the "Enjoyment Factor". If there is enjoyment there is no deduction>>>...???

[Gretel]

Laughing

...so I enjoy what I am doing and have a hobby....I better don't smile at any government representative.....

[George Boutwell]

Pay To Play

The entry fee for the Boston Marathon is $95. I have no idea where the money goes, but apparently people will pay for the privilege of doing with a crowd, what they could do for free on their own. If there is an upfront fee to participate, it doesn't matter whether it is a race or a lottery. Nondeductible. Exception would be churches and synagogues that charge membership fees.

[Bill Tubbs]

my concern exactly

The entry fee for the Boston Marathon is $95. I have no idea where the money goes, but apparently people will pay for the privilege of doing with a crowd, what they could do for free on their own. If there is an upfront fee to participate, it doesn't matter whether it is a race or a lottery. Nondeductible. Exception would be churches and synagogues that charge membership fees.

There is definitely a benefit (albeit an intangible benefit) of having a course roped off for X number of miles uninterrupted by street traffic, and having refreshments, etc along the route. One taxpayer had a receipt from the organizing group showing the full amount of the fee for a bicycle ride ($300) as a tax-deductible contribution -- I allowed that full amount but figured I should investigate.

Bill