Tax Exempt Status
As of January 2015, Gold Country Woodturners has been recognized as a Charitable Non-Profit Organization under section 501(c)(3) by the U.S. Internal Revenue Service.
Any donations to the club for which no benefit was received in exchange entitles the donor to claim that donation as a charitable donation on their individual tax return.
Examples of donations that would typically qualify:
- cash donations to the educational fund or to the club in general
- donations of wood, tools, other items etc. to club raffles or other fund raising events. (The amount claimed would a good faith estimate of the value of the donation)
- donations of equipment or supplies to the club for use in its educational and charitable purposes
- expenses directly incurred by officers, board members, and other members in direct support of the organization's mission (examples, cost of mileage driving to/from board meetings, expenses incurred as an officer, expenses incurred when participating in a public education event [NC Fair or similar])
Examples of contributions that would not likely be qualifying:
- Payment of dues
- Payment of fees for a class, demonstration, or other activity where a direct benefit was received in exchange
- Costs for general members associated with attending regular meetings
Other possible categories where a deduction may qualify
- Silent auction donations could be deductible to the extent that the amount paid exceeded the good faith estimate of the value of the item.
- Raffle ticket purchases could be the same
IT IS UP TO THE DONOR TO COMPLY WITH IRS RULES AND REGULATIONS. If you have any questions about what will or will not qualify, contact your tax adviser or the IRS.
Here is an Acknowledgement of Donation Letter that you can complete and file for your records.