Summer Fundraising: Know the IRS Regulations

In Taxes on June 7, 2011 by Sufen Wang Tagged: , , , , , , , , , , , , , ,

alex's lemonade stand

Alex Scott, a childhood cancer patient, raised over $1 million for children's cancer research with her lemonade stands before passing away in 2004 at the age of eight.

The weather is warming up all over the country, and kids and adults alike are getting antsy in anticipation of the summer fun that lies ahead. But for charitable organizations and groups, summer fun also means summer fundraising.

Schools, churches, and charities often take advantage of the warmer weather to put the “fun” in “fundraising” by holding events such as lemonade stands, fun run/walks, and car washes.

But whether you’re planning to raise funds or give them, it’s important to understand the IRS regulations governing the declaration of funds donated or funds collected on your 2011 taxes.

For example, the IRS states that, when you participate in a charity auction, you can only declare the amount that you give above and beyond the value of the item you’re receiving. And you can only declare charitable contributions if you itemize your deductions on Form 1040, Schedule A.

By taking the time to really understand the rules behind charitable giving and receiving, you can save yourself a lot of headache at the end of the fiscal year.

On the Money,

Sufen Wang
Wang Solutions

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: