We are a performing arts 501(c)(3) organization that charges an audition fee for the various levels of dancers. Parents are wanting to know if this is considered a tax deductible fee?
It sounds as though this is a fee that you charge for permitting someone to audition to see if they qualify for your program. If it is a fee, it is not deductible as a charitable contribution. If anyone can audition without paying the amount, it may be a contribution. But if it is mandatory to pay the fee in order to have the opportunity, it is not a deductible contribution.
If the dancers are professionals, the fee may be deductible as a cost of doing business, but that doesn't sound likely to be the case.
Add new comment