Can my daughter's sponsors deduct their contributions?

October 19, 2006

Date:  Thu, 14 Sep 2006
From:  Brigitte

Hello,

My daughter is a figure skater. People want to sponsor her, but we don't know how to get a non-profit account set up. Can sponsors deduct their sponsorship donations? She is getting to a high enough level that we don't know if we can continue to afford the expenses of her skating. We also have a handicapped son.

Thank you,
Brigitte

Answer

Date:  Wed, 04 Oct 2006

Hello Brigitte,

The scope of your question goes beyond a newsletter q & a. Please consider consulting with a professional tax advisor. Your daughter can't be a qualifying charity. There are some charitable organizations, such as the U.S. Figure Skaters' Association, that are qualified charities for promotion of the sport and might be able to help – at least to offer valuable contacts and information. Contact them. Businesses can sponsor athletes and claim deductions as business advertising expenses. These business sponsorship payments would be taxable income to your daughter.

My niece, Michelle Davis, was a competitive skater, so I sympathize with your situation. This is an extremely expensive sport to participate in, and many quit or don't get involved for that reason. By the way, if you're looking for a great figure skating coach, that's what Michelle is doing now in Sacramento.

Good luck!
Mike Gray

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