The new regulations are unclear regarding the tax implications if a donor received from the institution a gift of tickets or seats, rather than the right to purchase them. When clarification is available, this chapter will be updated. If, however, prize tickets used in a raffle are available free upon request to the public, the element of consideration would be lacking and the distribution of prizes would not then constitute a lottery. The fact that a purchase is not necessary would have to be printed on all promotional materials and on the tickets themselves. Basic membership fees paid to support groups may or may not be deductible for income tax purposes.
Several considerations come into play.
If, however, the member receives additional items or benefits for the larger payment, a determination of the tax deductibility of the additional payment would have to be made using the same criteria that apply to all quid pro quo gifts. Soliciting and Acknowledging Quid Pro Quo Gifts. Rather, . . . the amount properly attributable to the purchase of admissions or other privileges and the amount solicited as a gift should be determined in advance of the solicitation. The respective amounts should be stated in making the solicitation and clearly indicated on any ticket, receipt, or other evidence issued in connection with the payment. At the present time, no penalties are imposed on charities for failing to provide this information.