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Difference between donation and admission fee


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2018 Mar 6, 6:18pm   3,151 views  9 comments

by Patrick   ➕follow (55)   💰tip   ignore  

I went to a meetup group recently which had a "required donation" of $3 to attend.

I don't really mind the $3, but I do mind the "required donation" phrasing. If I recall correctly, donations are generally not taxable, but making a donation mandatory moves it from donation to fee, which is taxable.

So a lot of organizations seem to be trying to evade taxes by claiming that they are only asking for a donation, when in reality the obligatory nature of the payment makes it a taxable fee.

Any tax lawyers on here?

Comments 1 - 9 of 9        Search these comments

1   NuttBoxer   2018 Mar 7, 8:52am  

Not a lawyer, but as an English speaker I call bullshit. They're either liars, or woefully ignorant when it comes to English.
2   WookieMan   2018 Mar 7, 9:28am  

Patrick says
So a lot of organizations seem to be trying to evade taxes by claiming that they are only asking for a donation, when in reality the obligatory nature of the payment makes it a taxable fee.

Any tax lawyers on here?


No lawyer here. Just don't pay it out of spite. It's what the Art Institute in Chicago did (maybe still does). They ask for a "voluntary donation" for admission to the museum. I don't think the person had dealt with someone like my wife before, but she called them on the BS. I think we were 19-20 at the time. Guess what, we didn't pay.

In hind sight we were ass holes, but at the same time just fucking call it an admission fee. We had to go for a college course, which we were told was free entry and upon arrival we get bombarded with this "donation." I know they cherish their charity status, but come on. As NuttBoxer says, it's fucking English. If you're going to put up a fight allowing people in to an event or museum, just call it by what it is, admission fee!
3   Patrick   2018 Mar 7, 11:33am  

Lol, prolly true. I'm pretty dangerous you know.
4   RWSGFY   2018 Mar 7, 12:25pm  

The practice is pretty common: memberships in many organizations (museums, zoos, aquariums, etc.) are treated as both price of admission and donation (often tax deductible).
5   Shaman   2018 Mar 7, 3:09pm  

I know meetup.org charges for the ability to create a group. So the leader/host of the group was probably just trying to recoup those charges ($100?)
6   Patrick   2018 Mar 7, 3:18pm  

I wouldn't mind if it were a fee, which is taxable. But I'm annoyed when a fee is called a donation just so that the guy doesn't have to pay taxes.
7   Hircus   2018 Mar 7, 5:43pm  

This reminds of of how certain places tell you about the "free items you'll receive as a token of gratuity for your donation of $X". And they even have different levels, so as you donate more you get more / better stuff. Sometimes it's legit (eg, donate $1000 get a t-shirt), but other times, the donation amount seems to be about what the item truly costs, which makes me think it's just a tax evasion scheme.
8   Patrick   2018 Mar 8, 6:43am  

"Reaction" sounds unthinking, immediate.

"Response" sounds more considered.
9   WookieMan   2018 Mar 8, 3:18pm  

Feux Follets says
We seem to get a lot of number one from most every where but very little of number two - anywhere.


Am I number one or two? I'll resist the bathroom jokes for now, or not. Might need to stop pissing everywhere and maybe take a laxative to up that #2 frequency/quantity. Take four of these and call me in the morning.

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