[Lmp19438]

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?

[J_9]

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

[AK lawyer]

Tickets to what?

Food? Normally OK.

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

[excon]

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

[ScottGem]

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

[AK lawyer]

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.

[ScottGem]

. And the money received is taxable income.

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