I guess you don't understand the tax code. Volunteering your time is volunteering your time. If you take tickets, sell candy, sweep the floor, etc. Under your method all those people can deduct the cost of "lost labor". Please read my previous post with the link to the IRS tax code. Being an entertainer does not make you special.
Bottom line, if no cash changes hands directly to the non-profit, you cannot deduct anything. All your "expenses" are not deductible. And the difference between your reimbursed expenses and your performance fee "donation" is a made up number that's not supported by anything. Referring to your past gigs and what you made on them has nothing to do with anything regard your "donation".
Under your method, at the next benefit I play, I'll deduct a millions dollar because that's my fee that I'm giving up for that benefit. You say, that's not your regular fee so you can't take it as a charitable deduction. I'll say, for that benefit I would have charged a million dollars, who are you to say what I should charge?
The IRS doesn't get into those type of discusssions.
Ask any CPA or contact the IRS and ask them.
Spreading your nonsensical conclusions as fact on TB is misleading many musicians, some of which will be audited. I'd like to be there and hear the IRS agent laugh when the hapless TB'r who takes your advice tells the agent..well, I got my tax advice from my TB bro Mr. Richards....
Good luck with that.
P.S. Non-profits may record how many hours volunteers contribute to honor some but there is nothing to account for on their books since no cash is involved.
I appreciate the dialogue, and many of your points are good discussion. However, in your P.S. you actually make my point. If I am contacted by a charity to provide entertainment I am not a volunteer by the legal definition. If that was the case then all the vendors, even if they make profit, are volunteers. We are a VENDOR, just like food guy and booze guy. Huge difference. If a vendor wishes to donate his profits, he gets credit on his taxes and books for that. He also can do his normal bookkeeping for his employees and the business expenses.
You seem to think that a band who donates their fee is not a vender but a volunteer. That is where I think you are misleading yourself. My band is a vendor. I am NOT a volunteer or volunteering my help for the charity. I am making a donation. HUGE difference in taxes, and as several of us here have stated, no actual cash has to exchange hands but its covered in the books on paper.
If Bill Gates were to volunteer to organize a charity event for the Cancer Society, he can't deduct any of his time. If he speaks for the Cancer Society at an event for free and "donates" his normal speaking fee, he CAN deduct that.
Again, after 30 years in the biz and a few accountants and lawyers, I've learned. Nothing is ever perfectly black and white, but in this case its all legal. Remember, this forum is mostly general info, not hours with your CPA going over all the receipts and the books.
My point was and always will be simple. As I said, If I am asked to do a benefit that I am not personally involved with in some way, I look at what it costs me (my time and expenses to and from) and add the money I won't be getting (my fee) plus the cost of the door from my expected door. After looking at that total number I do a qualitative analysis about what the worth is to me. If I think its worth it, I do it. If I don't like the terms and it doesn't seem to wash, I say no.
One thing a lot of bands and people forget is that at some point even your fan base gets tired of paying at the door for a charity to see you. That costs you down the road, as they will come to less of the regular gigs.
To quote a very famous local Asbury Musician after the last benefit (two weeks ago), "Tommy, I've played more this year then I have played since the early 80's, and I haven't made a penny!"
SoCal, still love ya, hope you are starting to understand my point. Vendor, not volunteer.
