Charitable deductions

I'm not sure without doing research. But I'm wondering if you could make a cash donation to the organization in the amount of your expenses, and they then reimburse you, that would make things easier from a tax standpoint.

Stu

If the BJCP is asked to provide beer judges and you volunteer your time for the BJCP: deductible.

I looked at the NY State Homebrew Competition to be held tomorrow and Saturday at the NY State Fairgrounds (A BCJP sanctioned event). According to their website the Salt City Brew Club, who is hosting the event, is providing the judges. Assuming that the Salt City Brew Club fails the charitable organization deduction test, a judge who volunteers for that event would not have deductible expenses. If the Salt City Brew Club were to ask the BJCP to provide certified judges and the BJCP asked you to volunteer at the competition, I would conclude that you are volunteering your time for the BJCP in pursuit of its charitable goals and would have deductible expenses.

Dick Adams wrote: ...

Are the competitions organized and operated by the BJCP or do they simply provide a service for which they're somehow compensated while the organization(s) which actually do the competitions are somebody else on their own for their own benefit?

If the former I say "yes"; the latter (which, unfortunately, it sounds like is likely) I think probably "no"...

No court cases, IRS rulings, etc., to back it up; simply opinion as board member of other 501(c)3 groups.

(That said, not being a CPA or otherwise hindered by professional rules, in the position I'd probably claim and have IRS come ask for it if they didn't think appropriate... :) )

No cites here, but perhaps not all "contributions" to organizations otherwise classified as 501 c are tax deductible. And this could be the reason not listed in pub 78.

Has anyone else heard this also?

ChEAr$, Harlan

If you receive a personal benefit from your charitable contribution, then you can't deduct it. So if the trips are not allowed as a charitable deduction to begin with, then donating cash to the organization and having them pay for the ticket means your cash donation is not deductible.

(snipped....)

furthermore, why is there no mention on the web site about "charitable contributions graciously accepted, acknowledged, and deductible"? or words to that effect? And in the 2007 annual report, I see no income item called "contributions."

Why/ IMWTK.

ChEAr$, Harlan

1. I'd be paying the expenses twice; and
2. Contributions for the purpose of reimbursement are not allowed.

Dick

Let's start with there is no tax exempt contribution for local competitions period. This would even apply to a church choir.

Second, but irrelevant to the general point, the NY State Homebrew Competition is part of the New York State Fair which as a governmental entity is a qualifying organization.

My point is that upon sanctioning a competition, the BJCP solicits volunteer judges for the event and that blanket solicitation is the major benefit of BJCP sanctioning.

Dick

1. That is an outright guess.

1. The 947 Letter states the BJCP is a Public Charity and contributions to it are deductible under Sec. 170 the code.

Not wanting to engage in spin doctoring political rhetoric, is a "contribution to it" the same as a "contribution for its benefit"?

BTW: Is there a standard 947 letter? If so, what is the URL for it?

Dick

I entered the following search query into Google and got hits on copies of Letter 947 that several 501(c)(3) organizations have posted to their websites.

letter 947 AND irs

The text of the letters varies according to the date of issue. Here is a link to a somewhat recent Letter 947 that was issued 2½ years ago:

Condor

Can you get the BJCP to send you a letter thanking you for volunteering to judge the competition on their behalf?

Seth

I would want to see more than a thank you note.

I'd want to see

i) a letter requesting you/appointing you to be its representative for this function, and

ii) detailing the work you did, leading to the deduction.

and I'm still having trouble seeing any relativity to public charity that such an organization has. How on earth does judging beer benefit the public?

And yes, I would still have my doubts were the spirits Scottish in nature.

ChEAr$ anyway, Harlan

I'd guess it's educational, though it would also qualify, I imagine, as testing for the public safety. Though I'm sure there are some who might argue that it would qualify as religious, scientific or fostering amateur sports (beer making is a sport, right?).

Stu

If that were the case, this dialogue would not be necessary. Since there are over 3,000 BJCP members, such a mailing would be cost prohibitive given gross revenues of less than $20,000/yr.

Dick

That would mean 1,000 plus letters for a volunteer to sign over a three month period.

It would be much more efficient to have a Circular 230 preparer write an opinion letter on the deductibility. Which brings us back to my original question: Is a service in support of a 501(c)(3) to a non-qualifying organization equivalent to a service to the 501(c)(3)?

Searching for an analogous situation, I have come up with a member of the Civil Air Patrol drives 120 miles once a month to review flight and maintenance logs and to inspect private aircraft at a privately owned airport. He/she does so because these airports pay a fee to be sanctioned by CAP and CAP advertises to its members that these airports need reviewers and inspectors. Is the CAP member entitled to Schedule A Charitable deduction for the mileage?

Another example would be a Nurse-Practitioner volunteering time at a not-for-profit clinic that is not a qualifying organization. There are numerous not-for-profits that are not qualifying organizations. Are the Nurse's travel expenses deductible.

Do me a favor and presume the facts are correct and deal with the questions.

Dick

Well, since the nurse is not performing work for a 501(c)(3) so far the answer is no deduction.

But if the nurse belongs to a 501(c)(3) that provides clinical services to a nonqualifying organizaion (a non-qualifying organization that provides help to homeless veterans in the community, for example) the nurse would be volunteering mileage and perhaps supplies to the 501 and with proof that the 501 asked for this assistance, should qualify.

Dick Adams wrote: ...

...

No citations, but I wouldn't think so based on the "non-qualifying" portion thereof.

(Again this comes from training/education received as board member of of various qualifying organizations, not from a specific case).

Consumer Reports is a charity. Why should judging some stuff differ from judging other stuff in that way?

Seth