Are contributions tax-deductible?
Unfortunately, in most cases contributions to fraternities and sororities are not tax deductible. The Internal Revenue Service has established specific rules about when contributions to Greek organizations are and are not tax deductible. Contributions to support a scholarship fund or educational areas within a chapter house may qualify as tax deductible but must be made through a qualified 501 (c) 3 organization.
In most cases contributions to fraternities and sororities for housing purposes are not tax deductible. The United States Congress and Internal Revenue Service have established specific rules about when contributions to Greek organizations are and are not tax deductible. Contributions to support a scholarship fund or educational areas within a chapter house may qualify as tax deductible. It is important to note, however, that alumni will make contributions even when they do not receive a tax deduction. Omega has worked with many chapters and raised millions of dollars for new Greek houses. In nearly every case, the donors to a particular capital campaign did not receive a tax deduction for their contributions. Don’t let anyone tell you that to raise money your donors must get a tax deduction. It simply isn’t true.
New York State taxpayers can deduct up to $5,000 of contributions to their Program account ($10,000 for a married couple filing jointly) on their state income tax return each year. However, contributions are not deductible for federal income tax purposes. For more information on 529 plans you could visit www.nysaves.org.
