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Enter the cost of providing the beverages as a cash donation in the program ... keep receipts in case of an audit. Of course the beverages provided must be thru a valid 501(c)(3) charity ... so if you buy beverages to give to the charity and then help them distribute them get a receipt from the charity verifying the donation. You cannot simply buy them and pop open your trunk and give them away as folks walk by. It must be done as part of a valid charity to be deductible.
You wouldn't classify it as anything. If you are giving beverages directly to the individuals, it is not a tax deductible contribution.
If the "group" that is doing this is a 501(c)(3) organization that has authorization from the IRS to accept tax-deductible contributions, there are two ways you could handle the expenses. The organization could pay the expenses, and you make a cash contribution to the organization to cover the expenses. Or you could purchase the supplies and donate the supplies to the organization for it to use to provide the beverages. Either way you need a written acknowledgement of your contribution from the organization.
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