Coronavirus and Nonprofits: Cancellation of Fundraising Events and Membership Dues May Convert to Tax-Deductible Donations

By Eva Mruk, EA, Susan Barossi, CPA, and Garrett M. Higgins, CPA

Article Excerpt:

In the wake of the coronavirus pandemic, charitable organizations around the world have been forced to cancel or postpone their fundraising events. In addition, many charitable organizations have been advised to close their facilities and perform their operations virtually, if possible. As a result, nonprofits that collect membership dues, tuition, or fees can render limited or even no services in exchange. Unquestionably, these activities represent a substantial source of revenue; as such, nonprofit organizations are highly reliant on fundraising events and membership dues to fulfill their tax-exempt mission.