QUESTION
If I received $7500.00 for building a motorcycle to be raffled of, how can I give tax deductable receipt?
Asked on Jul 29th, 2013 on Taxation - Missouri
More details to this question:
We are building a motorcycle to be raffled of for cancer foundation. I received $ 7500.00 donation to build the bike. How do I go about giving a tax deduction receipt. We are a business.
3 ANSWERS
Chapter 7 Bankruptcy Attorney serving Lisle, IL
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Mankus & Marchan, Ltd.
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The donor can deduct the $7,500.00 donation on his tax return ONLY if you are registered as a 501(c)(3) organization. Otherwise, it's a non-deductible gift to you.
Answered on Jul 29th, 2013 at 9:03 PM
Unfortunately, contributors are most likely not entitled to a charitable deduction for contributions made to your business for the bike, unless you have formed a "501(c)(3)" organization that is conducting the charitable activities. Creating a 501(c)(3) organization can be expensive and time consuming, and may not be worth it for isolated cases of charitable fundraising such as this. You might consider donating the bike to an existing charitable organization and having them accept the donations.
Answered on Jul 29th, 2013 at 12:12 PM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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Get a receipt form the foundation. They should give you the proper form.
Answered on Jul 29th, 2013 at 11:30 AM