Are Charity Golf Outing Tax Deductible?
If you enjoy playing golf and supporting a good cause, you might be interested in participating in a charity golf outing. However, you should be aware of the tax implications of such an event, especially after the 2017 tax reform. Here are some key points to consider:
– A charity golf outing is a fundraising event organized by a qualified charity or a 501(c)(3) organization, such as a school, church, or nonprofit group. The net proceeds of the event are donated to the charity or used for its charitable purposes.
– A charity golf outing may include green fees, cart fees, food, drinks, prizes, and other expenses related to the event. The charity should provide you with a receipt that shows the amount of your payment and the fair market value of the benefits you received. The difference between these two amounts is your charitable contribution.
– Before 2018, you could deduct 100% of your payment for a charity golf outing as a business expense, as long as you discussed business before, during, or after the event. This was not subject to the 50% limit on entertainment expenses or the rules for charitable deductions.
– After 2017, the tax reform eliminated the business deduction for charity golf outings and other special charitable sporting events. You can only deduct your payment as a charitable contribution, subject to the limitations and substantiation requirements for such donations.
– To claim a charitable deduction for a charity golf outing, you must itemize your deductions on Schedule A of your personal tax return. You cannot claim a charitable deduction on Schedule C of your business tax return, unless you are a sole proprietor and reimburse your business for the payment.
– The amount of your charitable deduction depends on the type of charity and your adjusted gross income (AGI). Generally, you can deduct up to 60% of your AGI for cash donations to public charities, and up to 30% of your AGI for cash donations to private foundations. However, there are exceptions and special rules for certain types of charities and donations.
– You must keep records to prove your charitable deduction. These include a canceled check, bank statement, credit card statement, or receipt from the charity showing the name of the charity, the date and amount of your payment, and the fair market value of any benefits you received. You may also need a written acknowledgment from the charity if your payment is more than $250 or if you receive goods or services in exchange for your donation.
As you can see, playing in a charity golf outing can be both fun and rewarding, but it also has tax consequences. You should consult with a tax professional before making any decisions about your participation or deduction.
