A friend of mine and her husband are adopting a child. I recently found out that they are having a fund raiser... u have to pay for tickets, food, and drinks, for $25 per person. They are doing this because they want help paying for the adoption costs. I say that if they can't handle this monetarily on their own, then they shouldn't be asking other people for help. Isn't it against the law to do this?

It depends on your location. Some places it is legal and others it is not.

Tickets to what?

Food? Normally OK.

Alcohol? Where I come from it's illegal to sell it without a license.

Isn't it against the law to do this?Hello L:

Like lawyer said, if it's alcohol, they can't do it.. But, if it's Coke, there's nothing against the law about holding fundraisers..

excon

Essentially what they are doing is giving a party and asking for monetary gifts. Its not much different from having a baby shower.

Essentially what they are doing is giving a party and asking for monetary gifts. Its not much different from having a baby shower.

... or running a restaurant (albeit, for just one night). It's like any other business. Just be sure there are no licenses or permits you need to have.

What OP is thinking about, I imagine, is the charitable donation angle. That would not apply. Obviously, participants will not be able to take a tax deduction. And the money received is taxable income.

. And the money received is taxable income.

Would it? Wouldn't it be considered a gift?