Elsewhere online
February 03, 2015

Obama Aims to Close Tax Loophole on College-Sports Gifts

President Obama's budget plan calls for ending a tax break for donors who give to college athletics programs to secure the best seats at big games, Reuters and Bloomberg report.

The proposal would close what the White House terms a loophole in the requirement that donors who get something tangible in return for a gift reduce their tax deduction by the value of that item. College-sports fans who make contributions in exchange for hard-to-get tickets for major events—as many colleges and universities require—can deduct 80 percent of the gift, even if the market value of their tickets is more than 20 percent of the total.

Donations to major-college sports programs have boomed in the past decade, reaching $1.26-billion last year. Applying the normal deduction rules to gifts tied to game tickets would add about $2.5-billion to federal coffers over the next decade.

Read The Chronicle of Philanthropy's coverage of President Obama's budget proposal and its potential impact on nonprofits.