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Third party fundraising events

  • 1.  Third party fundraising events

    Posted 4 days ago
    In the last few months we have seen an increase in the number of people hosting third party events were they collect all event registrations and donations in order to pay for all expenses associated with the event. After all expenses are paid they send us the remaining balance. These event organizers understand that all the people that register/donate will not receive a tax receipt from our organization since they did not make the payment directly to us. My question involves the changes in the IRS form 1099-K reporting. Starting this year the threshold for reporting from vendors such as PayPal/Venmo will be lowered to $600. We are looking for sample language we can give to people that want to do these types of events so they understand the potential income reporting implications. 

    Thank you!

    Lisa Kirschner


  • 2.  RE: Third party fundraising events

    Posted 4 days ago
    I would be concerned about crossing the line here into tax advising, to say nothing of the issues surrounding registration as a fundraiser. That said, here is some sample language:

    Please note that if you receive more than $600 through PayPal or any similar app, the IRS will receive notification of this income, and you will get a 1099-K from PayPal to aid you in reporting this income on your income tax return. Be sure to keep all your expense receipts for your event and present them, along with the 1099-K, to your tax preparer to claim the maximum deduction to which you may be entitled. 

    Isaac Shalev
    Data Strategy Expert
    (917) 859-0151

    Autocorrect was used in composting this email, please excuse any typos