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Writer's pictureKevin Leahy

Givzey Guidance: Are Gifts Earmarked for Specific Individuals Tax-Deductible?


Givzey Guidance: How Do I Properly Credit a Donor and Document a Pledge Payment Made from a DAF?
Are Gifts Earmarked for Specific Individuals Tax-Deductible?

Question: Are Gifts Earmarked for Specific Individuals Tax-Deductible?

Question: I have been assigned the task of fundraising for our school orchestra’s trip to Europe next year. This is an educational trip, and the orchestra will be performing on the trip along with other orchestras from around the world. We are raising money to help pay for the overall trip expenses. Each orchestra member has been asked to help fundraise and been given a goal of $7,500. All funds raised are going to a general fund for the trip, not to an individual student. If fundraising falls short of the goal of covering the trip expenses, each student will be responsible for paying their evenly divided portion of the shortfall. Parents of an orchestra student wants to make a charitable donation of $7,500 specifically “earmarked” for their child. What’s the best way to approach this? Are Gifts Earmarked for Specific Individuals Tax-Deductible?

Answer:

If the parents designate the gift to a specific individual, the gift is not tax-deductible. They can make a charitable donation to the school earmarked for the orchestra trip which helps offset the costs for everyone going on the trip.


I would recommend that you include language in all your fundraising materials explaining that all donations are used to offset the costs of the entire orchestra. Best to get ahead of this very common request.

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