Unit donations tax deductable?

[GernBlansten]

I'm putting together a program to raise funds for our troop to buy a trailer. We are chartered through a church. My question is are contributions to this unit level effort tax deductable? I know that any equipment purchased through the troop belongs to the charter org. Since it's a church, I figure it could be considered deductable. Am I right or way off base?

[matuawarrior]

Since the unit is part of the church, yes, you are correct. Why not ask the church leaders for help with the fundraising? You may want to check with the accounting office or the pastor for the IRS non-profit number. OR you may ask donors to make their checks out to the church but earmarked for the troop. The church should be able to give receipts for donations received. For church members, they should get an annual statement of their contributions for their tax records.

 

Matua

[GernBlansten]

Thats what I expected. It's not that I don't trust our CO but I want to make sure that any donations made are directed to the purchase of the trailer and not to some other function the church deems appropriate.

 

Our troop has a 50 year relationship with the church, but the current relationship is rather week from my POV. The COR has shown up to only one of our committee meetings in the 18 months I've been active. They give us space to hold our meetings and some storage space but otherwise are pretty hands off. Also, I don't belong to the congregation so I don't have much exposure to the leadership of the church. I'll call the COR and get his opinion on the issue. I have some high dollar donors who would like tax receipts. I didn't think the troop could issue them independantly.

[frank10]

Have them make their checks out to Boy Scout Troop ### of Church Name. Seems to work for our supporters.

[scoutldr]

If the church wants to have a fundraiser to buy you a trailer, that's fine, and the donations to the church will be deductible. But units are prohibited from seeking cash donations. A unit fundraising application must be filed with your council, and approved by your SE. The rules for fundraising are printed on it. Sorry to be a wet blanket. That's what popcorn sales and car washes are for. Then, once the trailer is purchased, you have to figure out how to register it for license and insurance. Since the Troop is not a legal entity, is your CO willing to "own" the trailer on paper?

[EagleInKY]

The key word in scoutldr's post is "solicit". We have received some donations in our troop. These have come in one of two ways. Some have come from grants or local organizations that regularly give money to non-profits. They are always asking if anyone needs anything. When they do, we usually say "sure, we're looking to buy a _____" (gps, trailer, tents, etc.). They're more than willing to give us some proceeds. The second form of donation we've received is from some businessmen in our troop. They have made unsolicited donations to the troop to help pay for items.

[Vicki]

Eagle in KY is right on the money in his reply. We frequently get donations the way he details.

 

Gern - if a donor gives your CO money and earmarks it for the scouts, they cannot legally do anything but forward it to you. IRS regs are really clear on that point and, in extreme cases, it can be worth the organization's tax-exempt status to get it wrong. Look at the trouble the Red Cross got into when it even suggested using some of the 9/11 donations for administrative costs back in 2002.

 

Do sloppily run churches always get this right? Of course not. But any church treasurer or bookkeeper worth their pay/conscience will handle it correctly.

 

Vicki