A few friends and I organize a weekly community event. We rent a room at the local senior center and pay for all expenses. Although we don't solicit donations, people usually want to contribute. We don't have an organization setup, neither are we affiliated with any non-profit. I'm wondering if there'd be any reporting and/or tax obligations if we use our personal accounts to collect funds. I tried searching but couldn't find any information. Does someone have any pointers to some useful information?
Although we don't solicit donations, people usually want to contribute.
That's not an issue really, so long as your not soliciting. I assume the event is basically for entertainment, such as a monthly get-together or something of that nature. From the IRS perspective, any monies "contributed" towards such an endeavor are considered a gift to the recipient. As the recipient, gifts are not taxable or reportable on any tax return.
Now if the amount of a gift given by any one person in a tax year exceeds $15,000, then the giver (not the recipient) is required to file a gift-tax return with the IRS. I won't get into the specifics of that requirement because I seriously doubt any one individual "contributes" that much in a tax year. But even if they did, you as the recipient don't have to report jack squat.
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