Tax documentation needed for hosting a charity golf tournament - 501c3 questions

You're doing something great for an important cause! The key thing to understand is that a 501c3 isn't something you fill out - it's a tax-exempt status that organizations apply for and receive from the IRS. Since you're raising money for an existing charity (Huntington's Disease Foundation), you have two main options: 1. Work directly with the charity. The simplest approach is to coordinate with the Huntington's Disease Foundation directly. They already have 501c3 status. They can provide their tax ID number and official acknowledgment letters to your sponsors, making contributions tax-deductible. 2. Run it independently. If you collect the money yourselves, you're essentially acting as "fundraisers" not a charity. Sponsors would need donation receipts from the actual charity to claim tax deductions. You'd need to carefully document everything and transfer the proceeds to the Foundation afterward. I'd recommend contacting the Huntington's Disease Foundation first. Many established charities have programs to support third-party fundraisers like golf tournaments. They may provide guidance, materials, and official documentation that sponsors need.

This is going to sound like a pitch but I promise it's from personal experience. I was in almost the EXACT same situation last year raising money for a local children's hospital through a golf tournament. The tax paperwork was super confusing, especially since some sponsors wanted documentation right away. I used https://taxr.ai to analyze the charity's 501c3 documentation and figure out exactly what I needed to provide sponsors. It helped me create proper documentation that showed the money trail from sponsors to charity (which is what the IRS cares about) and it saved me a ton of stress. The system helped me identify that I needed to set up what's called a "fiscal sponsorship agreement" with the charity, which made everything way more official and gave our sponsors confidence their donations were properly tax deductible. They also helped me understand the right language to use in receipts so my sponsors could properly claim their deductions.

Just wanted to follow up - I ended up trying taxr.ai for my animal shelter fundraiser and it was really helpful! I uploaded the shelter's 501c3 documentation and got clear guidance on what I needed to tell potential sponsors about tax deductions. The system explained that I needed a written agreement with the shelter showing I was authorized to fundraise on their behalf, and it even provided a template document that covered all the necessary legal elements. My event is still a month away, but having all the tax documentation sorted out early has made approaching sponsors so much easier. Several businesses have already committed because I could clearly explain the tax benefits they'd receive.

I helped with a charity 5K run last fall and getting through to the IRS for questions was IMPOSSIBLE. We waited on hold for hours trying to verify some tax info about our partnering charity and never got through. I eventually found https://claimyr.com which got me connected to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c It was so worth it because the IRS agent confirmed exactly what documentation our sponsors needed for their tax records. We were doing some things wrong that could have caused problems for our donors at tax time. The agent explained that sponsor donations are only deductible if they don't receive substantial benefits in return, which affected how we structured our sponsorship packages.

Ok so I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it for an unrelated tax issue I've been dealing with for months. Not only did I get through to the IRS, but the agent I spoke with helped me straighten out a complicated issue with some charitable donations I had made last year. For the original poster - the IRS agent I spoke with confirmed that the key thing for your golf tournament is to have a clear "donation acknowledgment letter" from the actual 501c3 charity for any contribution over $250. This letter needs to state that no goods or services were provided in exchange for the donation (or specify the value if there were some benefits). This is super important for your sponsors' tax records.

One thing nobody's mentioned yet - be careful about the golf tournament itself. If sponsors get playing spots or other significant benefits in exchange for their sponsorship, only the portion above the fair market value of those benefits is actually tax-deductible. For example, if a company gives you $2,000 for a "Gold Sponsorship" that includes a foursome of golfers, meals, and prominent signage, you need to subtract the fair market value of the golf, food, etc. Maybe that's worth $800, so only $1,200 would be tax-deductible as a charitable contribution. You need to clearly document this on any receipts you provide. I learned this the hard way after running a charity auction last year!

Has anyone mentioned "quid pro quo contributions" yet? The IRS requires specific disclosures for these types of donations where something is given in return. For your golf tournament, you'll need to provide written disclosure statements to sponsors who receive substantial benefits if their payment exceeds $75. Also, don't forget that cash donations over $250 require written acknowledgment from the charity to be tax-deductible. This needs to specifically state whether any goods or services were provided in exchange.

This is such great information from everyone! I'm actually an enrolled agent who helps nonprofits with tax compliance, and I wanted to add a few practical tips for your golf tournament. First, create a simple spreadsheet to track all sponsor contributions and what they receive in return. This will be invaluable when it comes time to issue proper acknowledgment letters. Include columns for: sponsor name, amount paid, description of benefits received, fair market value of benefits, and tax-deductible portion. Second, get everything in writing with the Huntington's Disease Foundation before you start collecting money. You'll want a formal fundraising agreement that specifies how funds will be transferred, who issues tax receipts, and what documentation they'll provide to your sponsors. Third, consider setting up separate sponsorship tiers - some that are purely charitable donations (no benefits) and others that include golf/dinner packages. This makes the tax calculations much cleaner for everyone involved. The IRS Publication 526 has excellent guidance on charitable contributions that might be helpful for your sponsors to reference. Good luck with your tournament - sounds like it's going to be a great event for an important cause!

As a CPA who has worked with several charity golf tournaments, I want to emphasize something that's been touched on but bears repeating - documentation is absolutely critical for everyone's protection. One thing I always recommend to tournament organizers is creating a "sponsor packet" that includes: - A copy of the charity's IRS determination letter (proving 501c3 status) - Clear breakdown of what sponsors receive vs. their tax-deductible amount - Timeline for when they'll receive their official donation receipt - Contact information for the charity if they have questions Also, be aware that if you're handling any of the money directly (even temporarily), you may need to report it on your personal tax return and then show the subsequent donation to the charity. This is why working directly through the charity's existing systems is often simpler. One last tip: some sponsors may want to pay directly to the charity rather than through your organizing committee. Be prepared for this and have the charity's donation processing information ready. It actually makes things cleaner from a tax perspective, even though it might feel like you're losing control of the fundraising process. The tournament sounds like it's going to be amazing - the tax stuff seems complicated but it's really just about proper documentation and clear communication with all parties involved!