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Tax Implications

Donations or gifts to charitable organizations like BYU provide substantial tax advantages and income benefits. We would be pleased to provide professional assistance to help you craft your gift to BYU Athletics.
80/20 Split

The following information is taken from IRS Publication 526 "Charitable Contributions."

Contributions From Which You Benefit ¨"If you receive a benefit as a result of making a contribution to a qualified organization, you can deduct only the amount of your contribution that is more than the value of the benefits you receive."
Athletic Events¨"If you make a payment to, or for the benefit of, a college or university and, as a result, you receive the right to buy tickets to an athletic event in the athletic stadium of the college or university, you can deduct 80% of the payment as a charitable contribution. "Example 1. You pay $300 a year for membership in an athletic scholarship program maintained by a university (a qualified organization). The only benefit of membership is that you have the right to buy one season ticket for a seat in a designated area of the stadium at the university's home football games. You can deduct $240 (80% of $300) as a charitable contribution."
Based on these IRS guidelines, found on page three of the 1994 "Charitable Contributions" publication, the Cougar Club advises you that if you purchased either football or basketball tickets in the club's priority seating areas of LaVell Edwards Stadium or the Marriott Center then only 80% of your club membership contributions are tax-deductible.
As you know, to receive Cougar Club priority seating club members must make a contribution of $100 or more to BYU Athletics. Therefore, if Club Members purchase football or basketball tickets in Cougar Club's priority seating sections, only $80 of the first $100 contributed to the Cougar Club can be considered tax-deductible.
Further, club members must subtract the fair market value of any tangible benefits they received, in addition to priority seating, according to the following Cougar Club Disclosure Statement:
In compliance with IRS regulations that took effect on January 1, 1994, the Cougar Club is required to provide the following details "to donors who make a gift of more than $75 for which the donor receives something in return. The statement must inform the donor how much of such a quid pro quo contribution is tax deductible."
Loosely translated, the Latin phrase "quid pro quo" means "something for something." As you figure your annual charitable contributions, to deduct them from your taxes, you must subtract the value of any benefits you receive for making the contribution from the total amount donated.
In computing your tax benefit for charitable contributions to the Cougar Club, you should subtract the value of any benefits you received from the total amount of your membership dues and other contributions according to the following benefits schedule:
Nike Hat (one time only, new Silver Members) $10
Embroidered Attache Bag (one time only, Golden Members) $15
Turning Point desk memento (one time only) $375
Media guides for football and basketball, $8 each
Club luncheons, $5 per person, per luncheon
At present, no dollar value has been placed on other club benefits.

Club Members are annually mailed a benefits statement of what benefits the may have received. For additional information, please contact the Cougar Club Office at 801-422-2583 or consult with your tax advisor.