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Fundraising, Management Issues/Sports League Fundraiser for Player with Cancer


Hi Wayne,

A local non-profit (501c3)sports league that my kids belong to is organizing a fundraising event for a player who has cancer. The funds raised will be given to the family to help with medical expenses. The fundraiser will consist of a game played by adults of the league. We are charging $100 per player to play and will also be selling tickets to the game for $10 each. After the expenses for the event are paid the proceeds will be donated to the family from the organization.

Are there tax implications for the non-profit organization or the family?  

Thank you for your time.

Thanks for your questing, Jennifer.

As a general rule, the IRS does not allow donors to take a tax deduction for gifts that benefit a specific person, even when given through a nonprofit. For individuals, annual gift exclusion amounts apply without the donor having to pay a gift tax and without the recipient having to pay income tax. Some exclusions apply for gifts to help pay for medical and educational expenses.

Gifts involving individuals and nonprofits are complicated when it comes to tax implications. I recommend you discuss your situation with an accountant experienced with nonprofits in your state, as state rules vary. Perhaps the nonprofit's accountant would be helpful.

Best wishes for every success with your event.

Fundraising, Management Issues

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Wayne E. Groner


I can answer questions regarding annual funds, capital campaigns, endowment programs, asking for the major gift, volunteers, board development, nonprofit management, church fundraising, prospect research, prospect cultivation, and fundraising techniques.


Fundraising executive for 27 years, including nine years as a vice president. Presenter at national and regional workshops and conferences of Council for Advancement and Support of Education (CASE), Council for Resource Development (CRD), and Association of Fundraising Professionals (AFP). Workshop presenter to nonprofits and churches. Co-author of the book The Pastor's Guide to Fund-Raising Success. Writer of Sunday school lessons for adults and study resources for youth. Articles and book reviews on nonprofit fundraising-and-management issues published in national magazines and on the Web. Volunteer hospice chaplain. Board member and volunteer for community organizations.

Graceland College

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