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posted Jun 5, 2019 11:27:41 PM

Are contributions to college athletic funds deductable if priority points are included?

In years past, I could deduct 80% of my contribution to the college athletic fund even though I gained access to seats and priority level associated with seating and parking.

With the new law, I had understood that the seat guarantee (provide $X for right to buy seat) and maybe the the parking guarantee (same) would be excluded.

However because points are awarded, it sounds like I may not be eligible to deduct any of my contribution.  Is that the case?  I thought the IRS was supposed to make a clarifying statement, but I have not seen any information on searches on their page.

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1 Best answer
Level 15
Jun 5, 2019 11:27:49 PM

You are correct that this donation is no longer deductible.

Are College athletic donations tax deductible

The new tax law will essentially remove that 80% deduction entirely; any contributions that are linked to the right to purchase season tickets will no longer be considered charitable donations. It's a very common practice for athletic departments to require donations before alumni are able to purchase season tickets.

Another source:https://blog.case.org/2018/01/26/the-college-athletic-seating-deduction-is-out-heres-what-we-know-so...

The new law essentially replaces the 80 percent in the 80/20 rule with 0 percent. This means that, as of Jan. 1, 2018, donors who make a contribution to or for the benefit of a college or university in exchange for the right to purchase tickets or seating at an athletic event in the university’s stadium can no longer take a charitable deduction on 80 percent of the contribution.

The law clearly states that, “no charitable deduction will be allowed for any amount” of these contributions.

Seating contributions can no longer be deducted.


2 Replies
Level 15
Jun 5, 2019 11:27:41 PM

IRS has been slow to issue guidance on all the changes with the new tax law, so this provision could change as many colleges are not please with this.

Level 15
Jun 5, 2019 11:27:49 PM

You are correct that this donation is no longer deductible.

Are College athletic donations tax deductible

The new tax law will essentially remove that 80% deduction entirely; any contributions that are linked to the right to purchase season tickets will no longer be considered charitable donations. It's a very common practice for athletic departments to require donations before alumni are able to purchase season tickets.

Another source:https://blog.case.org/2018/01/26/the-college-athletic-seating-deduction-is-out-heres-what-we-know-so...

The new law essentially replaces the 80 percent in the 80/20 rule with 0 percent. This means that, as of Jan. 1, 2018, donors who make a contribution to or for the benefit of a college or university in exchange for the right to purchase tickets or seating at an athletic event in the university’s stadium can no longer take a charitable deduction on 80 percent of the contribution.

The law clearly states that, “no charitable deduction will be allowed for any amount” of these contributions.

Seating contributions can no longer be deducted.