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My business is for profit holding a fundraiser event.Do I need to file for 501(c)3 status for donations to be tax deductible

Denver, CO |

My business is for profit based on philanthropy and helping the community. I'm holding a fundraiser event. Do I need to file for 501(c)3 status for donations to be tax deductible.

Also a portion of my business (under a seperate (non registered) name) is purely non profit for charity (mainly focusing on volunteering) should I make this sector a "non-profit" and file for 501(c)3 even if I don't plan on receiving grants etc to aid in volunteering.

Attorney Answers 1


As a for profit business, you will not qualify for 501(c)(3) status, and therefore donations will not be tax deductable as charitable contributions. However, lots of these types of functions get donations that are deducted as business expenses - typically marketing or advertising expenses.

In order to to qualify as a non-taxable business, that part of the business would have to be separately incorporated. There are lots of non-taxable categories that aren't strictly charitable, and may fit your actual purpose better.

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