My understanding is that mulligans or payments to hit from a closer tee at a charitable golf outing are not tax deductible gifts, but does anyone have a link to an IRS document showing that? I can find info on games of chance, lotteries, etc.... but is there anything specific about this unique type of 'donation'? We had an outing in which players were told if they donated money to a scholarship they could hit from a closer position to the hole. However, I'm seeing this as equivalent to mulligans, which we always count as earned income. But, I'm getting the argument now (due to this new scenario) that this isn't a game of chance and there is no benefit to the golfer/donor because there is no prize money at the end of the outing for the 'winner' of it (they do get a trophy), so the 'donors' should get a tax receipt.
If someone has something in writing, or if I'm understanding incorrectly, can you please help me out?
Lisa S. Geiersbach
Director of Advancement Services