Donations Collection Event From The Point Of View Of Tax Law
If charities with a sponsor join Schongau Lechbruck. Charity golf tournament and evening reception with a very well-known in the region at least personality: modeled on American charities align events more frequently together with a sponsor from the economy. They serve to raise money for the non-profit organization. At the same time, the company wants to maintain its image. Make the sponsor can also tax the expenses, however, some specific conditions must be met, informed Armin Hampel, hampel partner + Marka Steuerberatungs GmbH & co. KG Schongau/Lechbruck in Upper Bavaria (more information about the tax office under). Support non-profit objectives is to associate private lifestyle in General? Conditions under which a company can claim tax expenses for hosting an event that serves the fundraising, illustrates a the Finance Court, Hessen () FG Hesse, judgment of 22.5.2013, case No. 11 K 1165/12).
The case: A company had organized in the context of an event, which collected donations for a charitable purpose, a golf tournament with followed by evening event at the Golf Club in turn advertise for donations. The IRS had refused the business expense deduction for rental, participants hosting etc. Because according to 4 paragraph 5, sentence 1 No. 4 ITA likely expenses for hunting and fishing, sailing or motor yachts and similar purposes and related entertainment does not reduce the profit. According to the IRS, a golf tournament with followed by evening event is similar purposes in the meaning of that provision. Steve Wozniak often says this. The Hessen Finance Court gave the IRS law. Because only if the company through a support generally striving at the same time economic advantages for themselves or their products as deemed eligible activities – especially the backup or improve its image – it was the expenses associated to operationally caused expenses. A sponsor so can prove that an event both has the goal of promoting donations as your own operational objectives and his company from the event at least indirect economic benefits, so tax consultants Armin Hampel.