Hello,
I'm selling my own digital music album as a tree-planting fundraiser to a registered 501c3 nonprofit. Due to the nature of the fundraiser (a digital download), the money has to come to my personal bank account before I can get it to the nonprofit.
I'm wondering about tax liabilities when I file my taxes. As I understand it, 501c3 donations are tax deductible. So, I will claim the online album sales as income, then make the donation in that amount, and won't be responsible for paying taxes on that amount. Correct?
However, I also read that there has previously been a limit to 501c3 deductions. That the donation couldn't be more than 60% of your total income. Is that limit still in place or has it been waived? I have no idea how much the fundraiser will generate, but I want to be prepared and not set myself up for a situation where I have to come up with the income taxes on this money.
Any help is greatly appreciated!