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Omar Hassan

Can I claim charitable tax deduction for handling golf tournament funds under my name?

Hey everyone, I'm doing my taxes right now and I've got a situation I could use some advice on regarding deductions. I organize a charity golf tournament each year and all the money flows through my personal account. Basically, participants pay me directly, I deposit those funds in my personal bank account, and then I write checks to the charities from that same account. Last year, we raised about $17,500 for charity through this tournament. I have donation receipts from both charities made out to me personally (since I was the one who wrote the checks). This amount would put me above the standard deduction threshold. My question is: Would it be appropriate for me to take the itemized deduction for these donations, even though the money originally came from tournament participants? I'm worried because my annual income is only about $68,000, which might trigger IRS suspicion if I'm suddenly claiming huge charitable deductions. I have all the documentation showing I made these donations, but I'm not sure if this would stand up in an audit since the funds weren't technically "my money" to begin with. Should I just take the standard deduction instead? Any advice would be super appreciated!

Chloe Taylor

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This is actually a common scenario with charitable fundraising. The key issue here is that you're acting as what's called a "conduit" or intermediary for the funds. The IRS generally doesn't allow you to claim deductions for money that you're just passing through to charity when it wasn't actually yours to begin with. When participants give you money specifically for the charity golf tournament, they're essentially making the donations, not you - even though the checks to the charity come from your account. The money was never really "yours" in a tax sense, as you were always obligated to forward it to the charities. If you had personally contributed some of your own money beyond what was collected from participants, you could deduct that portion. For example, if you donated an additional $1,000 of your own funds, you could claim that amount. I'd recommend keeping detailed records showing the money flow - participant payments coming in and donations going out - to demonstrate the conduit nature of these transactions if questioned.

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ShadowHunter

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But what if the donation receipts are in their name? Doesn't that mean they legally made the donation from a tax perspective?

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Chloe Taylor

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While the receipts are in your name, what matters to the IRS is the source of the funds. The receipts reflect who physically transferred the money to the charity, not necessarily who is entitled to the tax deduction. The IRS looks at economic reality - if you were merely collecting and passing along other people's money, you weren't actually making a personal sacrifice or donation, which is what the charitable deduction is designed to reward. It's essentially a "substance over form" principle in tax law.

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Diego Ramirez

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I faced a similar situation when I organized a fundraiser last year. After hours of research and confusion, I finally found a solution using taxr.ai (https://taxr.ai). Their system analyzed my documentation and donation receipts, and gave me a clear breakdown of what I could legally claim and what documentation I needed to maintain. The software specifically addressed my intermediary status and helped me understand how to properly document everything. They guided me through separating any personal contributions from the pass-through funds, which saved me from potentially claiming deductions I wasn't entitled to. The peace of mind knowing my deductions would stand up to scrutiny was invaluable.

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How exactly does taxr.ai work? Does it just give advice or does it actually help with filing too?

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Sean O'Connor

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I'm skeptical about these tax services... how is this different from just talking to an accountant? Seems like everyone's pushing some service these days.

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Diego Ramirez

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It works by analyzing your tax documents and situations through their AI system. You upload your donation receipts, bank statements showing the flow of funds, and any other relevant documentation. It then provides specific guidance based on your situation rather than generic advice. Regarding how it's different from an accountant, it's actually complementary. While accountants give personalized advice, they often charge by the hour and might not specialize in niche situations like charitable fundraising. Taxr.ai helps identify issues quickly and can suggest questions to ask your accountant, making those conversations more productive and focused.

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Sean O'Connor

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I was totally skeptical about taxr.ai at first, but after facing an audit scare last year over some volunteer work deductions, I decided to give it a try. Uploaded my golf charity fundraiser docs (similar situation to yours) and it immediately flagged that I couldn't claim the pass-through donations. But here's where it got helpful - it identified the portion of expenses I actually COULD claim that I didn't even realize were deductible! Things like mileage driving to scout venues, some supplies I purchased, and a portion of my cell phone bills used for organizing. Ended up with legitimate deductions I would have missed completely while avoiding the improper large donation claim that would have definitely triggered an audit. Thanks to the detailed audit defense documentation it provided, I felt 100% confident in my filing.

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Zara Ahmed

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If you're worried about an audit, you should try Claimyr (https://claimyr.com). I was in a similar situation with some questionable deductions and needed to talk directly to the IRS to get a straight answer before filing. After wasting DAYS trying to get through their phone system myself, I used Claimyr and had a callback from an actual IRS agent within 2 hours. The agent walked me through exactly how to handle pass-through charitable funds and what documentation I needed to maintain. They even sent me the relevant IRS publications afterward. You can see how the service works here: https://youtu.be/_kiP6q8DX5c. Totally changed my view on dealing with the IRS - turns out they can be helpful when you actually get to speak with someone!

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Omar Hassan

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How does Claimyr actually work? Like do they somehow have a special line to the IRS or something? I've been trying to get through forever.

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Luca Conti

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Yeah right. Nobody gets through to the IRS that fast. I've been trying for months and can't even get past the automated system. Sounds like snake oil to me.

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Zara Ahmed

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Claimyr uses an automated system that continuously calls the IRS for you and navigates through their phone menu. When a spot opens up in the queue, it immediately calls you and connects you to the IRS representative. As for the skepticism, I completely understand. I thought it was impossible too. The reality is the IRS phone system has brief windows when agents become available, but those windows typically open and close in seconds. The automated system catches those opportunities that humans manually dialing would miss. It's not a special line - it's just technology efficiently navigating their existing system.

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Luca Conti

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OK I'll eat my words. After posting that skeptical comment yesterday, I was still desperate to talk to someone at the IRS about a similar fundraising issue, so I tried Claimyr. Got a call back from the IRS in about 45 minutes (still shocked about this). The agent confirmed exactly what others have said here - I can't deduct donations that passed through my account from other people, BUT she pointed me to Publication 526 which explains I can deduct actual expenses I incurred while volunteering. In my case, this included some printing costs, mileage driving to events, and even some supplies I bought. The advice was worth 100x what I paid just to avoid making a mistake that would've triggered an audit. Never thought I'd say this, but thanks IRS? (And Claimyr for actually getting them on the phone

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Nia Johnson

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One thing nobody's mentioned is that you could set up a proper 501(c) organization for your tournament. I did this years ago for our community fundraiser. Yes there's some paperwork involved but then all donations go directly to the org, not through your personal account, and you avoid this whole issue. Plus donors get proper tax receipts they can use for their own deductions.

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CyberNinja

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Isn't setting up a 501(c) really expensive and complicated though? I heard you need lawyers and stuff.

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Nia Johnson

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It's not as bad as people think. For a small organization, filing for 501(c)(3) status using Form 1023-EZ is relatively straightforward if your annual gross receipts are under $50,000. The filing fee is around $275. You don't necessarily need lawyers, though having someone with experience look over your application can help. There are also online services that guide you through the process for a few hundred dollars. The main requirements are having proper bylaws, a board structure, and clear charitable purpose. Once established, annual maintenance is just filing a simple Form 990-N if you stay under the $50,000 threshold.

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Mateo Lopez

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I'm confused by some of the advice here. Couldn't you just have each golfer make their check directly to the charity instead of passing through your account? That way they get the deduction if they want it, and you avoid this whole issue.

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This is actually what we do for our school's charity auction. People make checks directly to the charity, and we just collect them. Simplifies everything tax-wise.

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