Tax Deductibility

Wondering if your purchase is tax-deductible? Read on...

Is my donation Tax-Deductible?

Generally speaking, IRS guidelines dictate that product purchases made indirectly OR directly from a 501(c)(3) charitable organization do not typically qualify as fully tax deductible donations.

"If you receive a benefit in exchange for the contribution such as merchandise, goods or services... you can only deduct the amount that exceeds the fair market value of the benefit received or expected to be received." -IRS.gov

In order for a donation-only purchase to qualify for a tax deduction, the organization you are supporting would need to verify that they are a 501(c)(3) charitable organization with tax exempt status, and they would need to provide their EIN to their supporters. In some cases, they provide this information to Gold Athletics. We are currently working on providing this information to supporters on their purchase receipts.

What Makes a Donation Tax-Deductible?

For any donation to be tax-deductible, it must be made to or for a government organization or subdivision thereof, or a tax-exempt organization as defined by Section 501(c)(3) of the Internal Revenue Code. Therefore, because public schools are subdivisions of a government organization, donations made to or for a public school qualify as tax-deductible Charitable Contributions. Likewise donations made to or for a private school or other non-governmental organization that is tax exempt under Section 501(c)(3), also qualify as tax-deductible Charitable Contributions.

Important to note when purchasing products:

Additionally, when fundraising efforts include purchasing items, such as pretzels or popcorn, the total amount may include a portion that is considered a donation. For example, if the fair value of the item is $15 but the purchase price is $25, the excess $10 is considered a Charitable Contribution and is tax deductible.

Not sure if your private school or non-governmental organization is tax-exempt? Here’s what you should do:

The IRS Exempt Organizations Select Check tool (https://apps.irs.gov/app/eos/) an online resource provided by the Internal Revenue Service (IRS) that allows users to verify the tax-exempt status of nonprofit organizations. This tool enables individuals and organizations to confirm whether a particular nonprofit entity is recognized as tax-exempt under section 501(c)(3) of the Internal Revenue Code. By using this tool, donors can ensure that their Contributions are made to qualified organizations and are eligible for tax deductions.