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Deducting charitable events

Fundraising events are a great way to support causes you believe in while enjoying an evening of entertainment. However, when it comes to tax deductions, keep in mind that you cannot deduct the whole price you paid for the ticket. A ticket for a charitable event is considered part purchase and part donation. You cannot write off a contribution to the extent that you get something in return. For example, if you buy a $50 ticket to a fundraising dinner at a church, but the cost of the dinner is $20, you can deduct $30.

For donations of more than $75, the nonprofit must give you a written statement telling you the value of what you received in return and reminding you that you can deduct only the portion of your contribution. There’s also a special rule for individuals who donate to colleges and universities and receive the right to buy tickets to school athletic events: They can deduct 80 percent of their donation.

As always for more specific advice, contact your tax advisor.