There are so many aspects to planning a fundraising event. Determining the ticket price and what portion of the ticket is tax deductible for attendees is one of those many details.
Your article about determining the tax deductible portion of fundraising event tickets was very helpful. However, I’m wondering if any of the information you provided changes when everything for the fundraiser is donated?
For example, we have a big fundraiser with food and wine, but all of this is donated to the event at no cost to our organization. Does that make any difference as far as determining value?
Any help you have or could refer me to would be appreciated. Everyone I’ve asked doesn’t seem to know for certain!! As you said, this is a vague area it seems.
Lincoln Children’s Museum
This is a good question. The guideline goes by the fair market value of the event compared to something similar that someone would have to pay for. So if someone went out to eat at a nice restaurant in your area, with dinner and wine what would it cost them? The fact that the items for your fundraiser were donated don’t play into the equation as far as ticket value. Though is is certainly a big benefit for your group that they were donated!
As of this writing, for tickets less than $75 you are not required to provide the fair market value, although some NPOs do as a courtesy to their supporters. Anytime you are planning an event it’s good to double check the IRS website to make sure you have the most current information.
Best of luck to you on your event!