Are chapter donations and event entry-fees tax deductible?
A. Donations to the chapter scholarship fund are tax deductible. Checks to the chapter scholarship fund need to be made to Texas Exes. Event-entry fees are tax-deductible but the fair market value of the entry fee must be listed on the event invitations. The “fair market value” is what someone would have to pay in normal circumstances for the food, goods, and /or services provided- e.g. if a meal at the event’s restaurant would normally cost $25, that’s the ticket’s fair market value unless participants receive other goods/services as well as a meal. This figure does not have a direct relationship, necessarily, with the amount the chapter is paying for the food, goods, or services provided event participants.
A. Donations to the chapter scholarship fund are tax deductible. Checks to the chapter scholarship fund need to be made to Texas Exes. Event-entry fees are tax-deductible for the amount over the fair market value of the ticket price. The “fair market value” is the cost of the goods and services received at the event- e.g. if a meal at the event’s restaurant would normally cost $25, that’s the ticket’s fair market value.
