Non-profit ticket purchase for an event as a donation

[tsukada2006]

We have a Club that is a non-profit category. All tickets purchased are categorized as donations. Are these categorized as a donation?

[Jennifer_A]

If a taxpayer receives a benefit in exchange for the donation, then the charitable contribution is reduced by the value of that benefit.  This rule would not impact the non-profit organization but would impact the donor.  It would be the organization's responsibility to inform the donor of the non-deductible portion.

For example, lets say your organization hosts a luncheon at a golf course.  The golf course bills at $50 per attendee.  Your organization sells tickets for $75 per attendee.  The deductible charitable contribution for your donor would be $25 (ticket price $75 minus value of meal $50).

However, lets say your organization is given baseball tickets and you sell them for $25 per ticket.  Even if your organization did not incur any expenses, the baseball ticket has a face-value.  The face value would not be deductible for the donor.