I recently threw a charity fund raiser. I build a number of blackjack and craps tables to be used for the fund raiser (everyone donated money and got chips to play with). Are the cost of the supplies used to build the tables tax deductible? Is the catering tax deductible?

I tried finding information about the rules regarding supplies for a charity event, but most of them referred to events actually hosted by the charity, not for 3rd parties raising money for a charity.

100% of all donations went to the charity, if that matters.

11/10/2010 12:22:46 PM

just take it off and see if you get caught

durr

11/10/2010 12:34:07 PM

I would say no. Definitely no to the catering and even though I'm not sure about the supplies/expenses, I'd lean towards no.

You could always just try ^ but if you want to be play it safe, I would not include it

11/10/2010 12:37:18 PM

Quote :

"The IRS has put together the following 10 tips to help ensure your contributions pay off on your tax return. 1. Contributions must be made to qualified organizations to be deductible. You cannot deduct contributions made to specific individuals, political organizations and candidates. 2. You cannot deduct the value of your time or services. Nor can you deduct the cost of raffles, bingo or other games of chance. 3. If your contributions entitle you to merchandise, goods or services, including admission to a charity ball, banquet, theatrical performance or sporting event, you can deduct only the amount that exceeds the fair market value of the benefit received. 4. Donations of stock or other property are usually valued at the fair market value of the property. Special rules apply to donation of vehicles. 5. Clothing and household items donated must generally be in good used condition or better to be deductible. 6. Regardless of the amount, to deduct a contribution of cash, check, or other monetary gift, you must maintain a bank record, payroll deduction records or a written communication from the organization containing the name of the organization, the date of the contribution and amount of the contribution. For donations by text message, a telephone bill will meet the record-keeping requirement if it shows the name of the organization receiving your donation, the date of the contribution, and the amount given. 7. To claim a deduction for contributions of cash or property equaling $250 or more you must have a bank record, payroll deduction records or a written acknowledgment from the qualified organization showing the amount of the cash and a description of any property contributed, and whether the organization provided any goods or services in exchange for the gift. One document may satisfy both the written communication requirement for monetary gifts and the written acknowledgement requirement for all contributions of $250 or more. 8. If your total deduction for all noncash contributions for the year is over $500, you must complete and attach IRS Form 8283, Noncash Charitable Contributions, to your return. 9. Taxpayers donating an item or a group of similar items valued at more than $5,000 must also complete Section B of Form 8283, which requires an appraisal by a qualified appraiser. 10. To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A. For more information on charitable contributions, refer to Form 8283 and its instructions, as well as Publication 526, Charitable Contributions. For information on determining value, refer to Publication 561, Determining the Value of Donated Property. These forms and publications are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676)."

http://www.irs.gov/newsroom/article/0,,id=106990,00.html

I think 2 refers more to you can't purchase $500 worth of raffle tickets and then deduct that even if the raffle was for a charity. Your time and services went in to building the stuff, but I'm not sure about the actual raw materials. I mean even though you used it raise money, you didn't actually contribute the property to the charity (or the catering/food).

More reading: http://www.irs.gov/pub/irs-pdf/p526.pdf

[Edited on November 10, 2010 at 12:53 PM. Reason : I think you are going to have to check with an accountant/tax person]

11/10/2010 12:47:46 PM

Answer is no unless you have setup a non-profit yourself. You could donate the tables to goodwill (assuming they want them) then the fair market value @ the time of the donation would be deductible.

11/10/2010 1:38:24 PM

"fair market value", as far as taxes are concerned, is never the actual fair market value.

11/10/2010 1:47:14 PM

Should at least cover the supplies, though

11/10/2010 2:00:54 PM

Thanks for the feedback so far. I put a request in with my accountant yesterday, and he is double checking the scenario to make sure he gives me the correct answer. I was hoping that someone here would have done something similar and had some experience to share.

I had not considered this being tax deductible until a client of mine said that she holds fundraisers for local charities on a somewhat regular basis and always deducts the catering and other expenses from the event.

11/10/2010 2:01:53 PM

Did you get the tables back when they were finished with them?

11/10/2010 2:02:56 PM

Yes, the event was held in my home and hosted by me, so I still have the tables (and lord knows what I'm going to do with them now).

11/10/2010 2:07:30 PM

^ then no. You kept all the materials and end product. had either ended with the charity, then the charity could give you fair market value for it. That or you could say you built the stuff for the charity and they reimburse you, at which you could donate that and take it off your taxes.

11/10/2010 4:43:46 PM