[M T]

Section 170(l) of the Internal Revenue Code deals with precisely this issue. That subsection says that when somebody donates money to a college or university, and the donor receives "the right to purchase tickets for seating at an athletic event in an athletic stadium of such institution," and the donation otherwise would be a fully deductible charitable donation, then the donor is allowed to deduct 80% of the total amount.

Congress apparently made the somewhat arbitrary decision that 20% of the donation is deemed to have been given in exchange for the right to buy tickets, and therefore is not really a gift. The advantages of the 80/20 rule are that it's easy to apply and it avoids the difficult question of trying to put a fair market value on the right to buy tickets for various sports at various universities.

Thanks!  It does seem like the restriction to college or university is arbitrary (which is of course how laws are), why couldn't this apply to the 49ers or SF Giants (have to donate $ to XYZ charity to receive a benefit).

What about the state's (and city's) asserting 100% or even 20% is part of the ticket price and so is subject to sales tax?

[M T]

Section 170(l) of the Internal Revenue Code deals with precisely this issue. That subsection says that when somebody donates money to a college or university, and the donor receives "the right to purchase tickets for seating at an athletic event in an athletic stadium of such institution," and the donation otherwise would be a fully deductible charitable donation, then the donor is allowed to deduct 80% of the total amount.

Congress apparently made the somewhat arbitrary decision that 20% of the donation is deemed to have been given in exchange for the right to buy tickets, and therefore is not really a gift. The advantages of the 80/20 rule are that it's easy to apply and it avoids the difficult question of trying to put a fair market value on the right to buy tickets for various sports at various universities.

Thanks!  It does seem like the restriction to college or university is arbitrary (which is of course how laws are), why couldn't this apply to the 49ers or SF Giants (have to donate $ to XYZ charity to receive a benefit).

What about the state's (and city's) asserting 100% or even 20% is part of the ticket price and so is subject to sales tax?