Donation Receipts for Youth Sports Clubs: What 501(c)(3)s and Other Clubs Need to Know
A plain-English guide to donation receipts for youth sports clubs, including what 501(c)(3) receipts should say, the $250 rule, and what changes if your club isn't a charity.
Supporters often ask, "Is my gift tax deductible?" The answer depends on how your club is set up. This guide explains the basics in plain English so you can give donors the right receipt every time.
This is general information, not tax or legal advice. Talk to a tax professional about your club's situation.
Is your club a 501(c)(3)?
Youth sports clubs are organized in a few common ways:
- 501(c)(3) public charity. Recognized by the IRS as a tax-exempt charity. Donors may be able to deduct gifts.
- Other nonprofit. Some clubs are nonprofits under state law but don't have 501(c)(3) status. Gifts generally aren't tax deductible.
- LLC or other business. Gifts to a business generally aren't tax deductible as charitable contributions.
Not sure? Your club's IRS determination letter will tell you, and you can search for your organization in the IRS Tax Exempt Organization Search tool.
What a 501(c)(3) receipt should include
The IRS requires donors to have a written acknowledgment for any single contribution of $250 or more before they can claim a deduction. Many charities send a receipt for every gift, which is good practice. A solid receipt includes:
- Your organization's legal name
- Your EIN (employer identification number)
- The donor's name
- The date and amount of the gift
- A statement that no goods or services were provided in exchange for the gift, or a good-faith estimate of their value if something was provided
The IRS explains these rules in Publication 1771, Charitable Contributions: Substantiation and Disclosure Requirements.
When donors get something back
If a supporter receives something in return, such as a dinner ticket, a T-shirt or an ad in the program, the deductible amount is generally the gift minus the value of what they received. For payments over $75 where the donor receives something in return, charities must give a written disclosure that explains this and estimates the value.
Online fundraisers where supporters simply give to a player's page usually don't involve anything in return, which keeps receipts simple.
What if your club isn't a 501(c)(3)?
You can still give supporters a receipt. It just shouldn't say the gift is tax deductible. A clear receipt shows the club's name, the amount, the date and a thank-you. Be careful not to imply a tax benefit you can't offer.
Keep good records
- Save a copy of every receipt.
- Keep records of campaign totals and payouts.
- If your club is a 501(c)(3), keep your determination letter handy. Donors and sponsors sometimes ask for it.
How Kick For Good handles receipts
When a club applies to Kick For Good, it chooses its organization type. 501(c)(3) clubs provide their legal name and EIN, which Kick For Good checks against IRS tax-exempt records so donor receipts are accurate. Every supporter then gets a receipt automatically, worded for the club's organization type. Clubs that aren't charities get a regular receipt without tax-deduction language.
After each campaign, clubs also receive their campaign paperwork: totals, receipts and records in one place.
Frequently asked questions
Are donations to youth sports teams tax deductible?
They can be if the team is part of a 501(c)(3) organization and the donor receives nothing in return. Gifts to clubs that aren't 501(c)(3)s, such as LLCs, generally aren't tax deductible as charitable contributions.
What is the $250 rule for donation receipts?
For a single contribution of $250 or more, a donor needs a written acknowledgment from the charity to claim a deduction. It should include the amount and state whether any goods or services were provided in return.
Does my club need an EIN to fundraise?
It depends on how your club is organized. A 501(c)(3) has an EIN, and donors' receipts should include it. On Kick For Good, nonprofits, booster clubs, LLCs and corporations provide an EIN when they apply, schools and PTOs can add one if they have it, and private clubs or sole owners don't need an EIN at all (Kick For Good never asks for a Social Security number).