Back-to-School Giving, Part 2

School Fundraisers

Yes, Smart Givers, it’s that time of the year again. Back-to-School season is here, and with it, a plethora of school fundraisers. Before you know it, your kid will be coming home accompanied by a host of specialty chocolates, colored cookie dough, and autumn pumpkin pie vanilla spice chai latte scented candles – for you to sell. Fear not, Smart Giving parent, we’re here to help!

First things first – we know how busy you are, but no, you shouldn’t just buy all five tins of candles and write it off on your taxes. One, they aren’t tax-deductible (we’ll explain), and two, there’s a better way to do it!

As we discussed in our last blog post, the IRS allows a tax deduction for donations given to “any school that does not operate for profit” (Janet Berry-Johnson for Forbes). This includes donations you make as part of school fundraisers. The basic principle when deducting your donations to fundraisers is Donation – Worth of good or service = Tax-deductible amount.

Donation  –  Worth of good/service  =  Tax-deductible amount

Hence why we don’t recommend just buying all of the fundraising items — you won’t be able to deduct those candles from your taxes, and you’ll never be able to get the pumpkin scent out of your house.

So, why not consider a creative alternative?

Instead of buying the stuff yourself, consider giving directly to the school instead. Often schools get a severely reduced percentage of the fundraiser profits anyway. Cutting a check directly to the school can be most effective on all fronts – more money for them, less time (and taxes) for you.

However, while you might not be able to write off a bunch of candles (because in this case, donation = worth of good), don’t write off all fundraisers. Berry-Johnson gives the example of a fundraising dinner: a $100 ticket to a dinner with a meal worth $25 leaves you with $75 that you can claim on your taxes. Nice, huh?

A few exceptions to note:

1. The cost of raffle tickets is never deductible.The price of the ticket is considered equal to the chance to win a prize,” writes Berry-Johnson.

2. Donating auction or raffle items is also never deductible since technically the school is putting them to fundraising use instead of educational use. (Tricky!)

3. If the school gives you a “small gift of minimal value” – like a coffee mug – in exchange for your donation or services, you are not required to reduce your tax deduction.

So with that, go forth and give (or fundraise)!

Looking for an older article?

We're in the process of migrating our blog. If you're looking for an older entry, please visit the archive to search for it.

Get our latest and greatest monthly!

Subscribe

Charities Review Council

Our mission is building donor and nonprofit relationships for strong, vibrant and just communities. We envision healthy communities for all, benefiting from effective and trustworthy nonprofits that are supported by a well-informed public’s generosity.

Let’s Connect

1915 Highway 36 W Ste 133 • Roseville, Minnesota 55113-2709
Phone: (651) 224–7030 • E-mail: info@smartgivers.org

Privacy Policy (5/9/19) • Terms of Use (5/9/19)

MENU
Log In