USA Nonprofit Event Question

[Laleda62]

Hey all,

I'm new to nonprofit accounting and need some help. Question about nonprofit event tickets. If someone buys extra tickets to an event and donates them are those extra tickets tax deductible or is only the FMV tax deductible? Question 2: Should I be calculating the FMV and adding it to donor statements?
Thanks in advance.

 

[BIG E]

How much of the ticket is FMV for product or service provided, how much is for a contribution to the tax exempt?

 

[Laleda62]

Just as an example, let’s say the ticket is 45 and fmv is say 25.

 

[BIG E]

Then per ticket you made a charitable contribution (assuming it's a 501(c)(3) entity) of $ 20.
The FMV of what wasn't used is not deductible because it was available to be used.

 

[Laleda62]

Is this also true if someone donated money to pay for other people to attend an event? Should I only record the FMV?

 

[BIG E]

There's nothing to record as a tax deduction - paying for the FMV of the event is like giving a person a "gift".
The only portion that's a donation is the excess over the FMV of the event.

 

[Laleda62]

Got it. Thank you so much for your help!