Tax Deductible??

[2Curious]

What is the name of your state (only U.S. law)? AZ

We are a new nonprofit in AZ and are in the process of launching a guidance program to youth (youth's families) and high school athletic programs (high schools) throughout the United States. In return for participation in our program we ask that they make a donation to our organization. We will not dictate the donation amount but those that donate over a certain amount will receive more benefits from the program. This donation is tax deductible for the individuals AND the high schools throughout the US correct? Again, we are a federally acknowledged 501(c)3 organization.

 

[LdiJ]

What is the name of your state (only U.S. law)? AZ

We are a new nonprofit in AZ and are in the process of launching a guidance program to youth (youth's families) and high school athletic programs (high schools) throughout the United States. In return for participation in our program we ask that they make a donation to our organization. We will not dictate the donation amount but those that donate over a certain amount will receive more benefits from the program. This donation is tax deductible for the individuals AND the high schools throughout the US correct? Again, we are a federally acknowledged 501(c)3 organization.

You need to get yourselves a consult with both an attorney and a tax professional who specialize in not for profits.

I have a concern about you giving greater benefits to those who donate more. I can see potential problems there. If someone is paying for a service, at least part of their payment would not be tax deductible. Getting more benefits if you donate more, smacks of paying for a service. Also, unless a high school is a private, for profit organization, then whether or not something is tax deductible to the high school is irrelevant, because the high school will also be a non profit organization 99.99 percent of the time.

Again, gets some consults with some experts.

 

[tranquility]

I agree. You cannot deduct the value of the services you receive for the "donation". You need to see an expert to better deal with how you are providing services in order to not be a large hassle to those who donate.