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Javier Hernandez

What are the tax implications if I host a charity event like a golf tournament?

I'm thinking about organizing a charity golf tournament this summer to raise funds for a local animal shelter. I've never done something like this before, but I thought it would be a fun way to help a cause I care about. If everything goes well and I manage to raise around $8,000 from the event (through registration fees, sponsors, etc.), I'm not sure how to handle this for tax purposes. Would I need to report this income to the IRS? Or since it's going to a legitimate non-profit, is it considered tax-exempt as a charitable donation? Also, I'm planning to do this as an individual, not through any organization. Do I need any special permits or registrations? I want to make sure I'm doing everything properly! Thanks in advance for any advice you can offer!

The tax implications for hosting a charity event really depend on how you structure it. Since you're doing this as an individual rather than through an established organization, there are some important things to consider. If you collect money and then donate it to the animal shelter, the IRS generally views you as a "conduit" or intermediary. This means you're not personally taxed on the funds you collect IF you give all of it to the qualified 501(c)(3) charity. However, you can't deduct expenses you incur when organizing the event from your personal taxes. I'd recommend getting a written acknowledgment from the charity when you donate the proceeds, which clearly states the date and amount of the contribution. This documentation is crucial for both your records and participants who might want to claim a partial deduction. Keep very detailed records of all money collected and spent. This isn't just good practice—it could save you headaches if questions ever arise about where the money went.

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Thanks for the info! So if I understand correctly, I won't be taxed on the funds I collect, but what about the people who register for the tournament? Can they deduct their registration fee as a charitable donation? Or only the portion that doesn't cover costs like green fees, food, etc?

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The participants can only deduct the portion of their payment that exceeds the fair market value of what they receive. So if someone pays $100 to participate but receives $40 worth of benefits (like green fees, food, prizes), they can only deduct $60 as a charitable contribution. You should provide participants with written documentation that states the total amount paid and the estimated value of goods or services they received, so they know what portion may be tax-deductible. This is where good record-keeping becomes essential for everyone involved.

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After organizing my sister's cancer fundraiser last year, I was in the exact same position as you! I spent weeks trying to figure out the tax stuff until I found https://taxr.ai which literally saved me from a major headache. They analyzed all my event documents and receipts, then gave me a detailed breakdown of what was deductible, what needed to be reported, and how to document everything for the charity and participants. The coolest part was they showed me how to create proper documentation for the participants so they could claim appropriate deductions on their taxes. They even helped me understand how to handle cash donations vs. credit card processing which had different record-keeping requirements.

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How does taxr.ai actually work? Do you upload documents to them or do they connect to your accounts? I'm planning a 5K fundraiser and the thought of handling all the tax implications is making me reconsider.

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Did they help with state tax issues too? I'm organizing a charity auction in California and heard there are specific state requirements for fundraising events that are different from federal.

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It's not a magic back door - they use an automated system that continually redials the IRS using their algorithm to find the optimal times when call volume is lower. Once they get through, they have the IRS call you back directly. It's all aboveboard, they're just using technology to navigate the phone system more efficiently than a human manually dialing could. I understand the skepticism, I felt the same way initially. But they don't actually skip the queue or do anything improper - they're just persistent with their automated system in a way individuals can't be. The IRS hasn't shut it down because it's not doing anything against their rules, it's just making the existing system work better for individuals.

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I have to admit I was completely wrong about Claimyr. After posting that skeptical comment, I decided to try it anyway since I was desperate for help with a complicated donation issue from a memorial fund I organized. The service actually worked exactly as described - I got an IRS callback in about 90 minutes when I had previously wasted days trying to get through. The agent I spoke with walked me through the exact documentation requirements for handling memorial donations and explained which portions needed to be reported on which forms. She even emailed me specific publication references I needed to follow. For anyone organizing charity events like the OP, getting direct guidance from the IRS was incredibly valuable - they clarified things about donation collection and third-party fundraising that I couldn't find clear answers to anywhere else.

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One thing nobody mentioned yet that's super important - depending on how much money you're raising, you might need to register with your state's charity bureau before soliciting donations. When I did a basketball tournament fundraiser, I had to register with my state because we expected to raise over their threshold amount (was $5k in my state). Also check if you need any special permits for the golf course event. Some municipalities require event permits if you're having more than a certain number of people. Better to check in advance than get surprised with fines!

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Do you know if the registration requirements apply if you're raising money for an already-registered charity? Like if I'm just collecting money to give to the American Cancer Society, do I still need to register separately?

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Yes, in most states the registration requirements still apply even if you're fundraising for an established charity. The regulations are generally based on who is collecting the money, not where it ultimately goes. This catches a lot of people by surprise. Your best approach is to either partner officially with the charity so they handle the money directly, or check with your state's charity bureau about requirements for third-party fundraisers. Some states have exemptions for small fundraisers under certain dollar amounts, but these thresholds vary widely by state.

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Quick question - has anyone used any specific software to track donations for their charity events? I'm helping with a fundraiser golf tournament next month and wondering if Excel is good enough or if there's something better?

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Don't use Excel! Learn from my mistake lol. We used it for our school fundraiser and it was a nightmare when we had to generate tax receipts. Check out GivingFuel or Qgiv - both have free options for small events and can automatically generate tax receipts with the right language about fair market value.

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Thanks for the warning! Just looked up GivingFuel and it seems perfect for what we need. Definitely don't want to be manually creating tax receipts for 100+ golfers. Did you find the free version sufficient or did you need to upgrade?

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Great question about charity event taxation! I organized a similar fundraiser last year and learned a lot through the process. One key thing to remember is that you'll want to work directly with the animal shelter from the beginning - having them officially endorse or co-sponsor the event can simplify things significantly. Many established nonprofits have experience with third-party fundraisers and can provide guidance on proper documentation. Also, make sure to separate your personal expenses from event expenses in your record-keeping. If you pay for things like flyers, registration materials, or other event costs out of pocket, those are generally not tax-deductible for you personally, even though you're doing it for charity. Consider setting up a separate bank account just for the event funds - it makes tracking much cleaner and provides a clear paper trail if you ever need to document where every dollar went. This also helps establish that you're acting as a conduit rather than receiving personal income. The $8,000 amount you mentioned definitely puts you in territory where proper documentation becomes really important, so don't cut corners on the record-keeping!

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This is really helpful advice! I'm just getting started with planning charity events and the separate bank account idea makes total sense. Quick question - when you say the animal shelter should "officially endorse or co-sponsor" the event, does that mean they need to be involved in the actual planning, or is it more like getting a letter of support from them? I want to make sure I approach them correctly when I reach out.

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