I have never heard of anything like this jeapordizing your tax exempt status. It is a donation and as long as you are awarding it to an adult then I cannot see what the issue would be.
The only way you can get something in writing would be to contact the IRS. You can go to www.IRS.Gov. and look for information and contact them for an answer to your question. Anytime we have called them for anything they have been very nice and helpful.
Thank you for such a quick response! We are a Catholic School so it is not a problem to have alcohol on the premises. Is there anyplace where I can get this in writing in case we are challenged with this? Our priest used to work in the Finance office of our diocese and he is definitely a stickler when it comes to these types of things.
We are allowed to accept alcohol as donations and do so for our auction.
However if you are a public school you cannot have alcohol on the premises. We hold our auction in a banquet hall and we store the alcohol elsewhere until the night of the event.
We are planning a combined "dance" and March Madness event in April for adults only. We have a company who is willing to donate alcohol for our event, but the following question was asked. Is it okay to accept a donation of an alcoholic beverage? The concern is this may jeapordize our nonprofit (tax exempt) status. Has anyone come across this before?
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