Benefit Concert

[Bryan BK]

What is the name of your state (only U.S. law)? MA

I have a friend that was killed. He has left behind his 14 year old son who lives with his mother. My band is holding a benefit concert for the son. We may generate $5000 or more. What is the proper way handle the money? Could we establish a trust fund for the son? Is it considered a charitable donation?
Bryan

 

[Ohiogal]

What is the name of your state (only U.S. law)? MA

I have a friend that was killed. He has left behind his 14 year old son who lives with his mother. My band is holding a benefit concert for the son. We may generate $5000 or more. What is the proper way handle the money? Could we establish a trust fund for the son? Is it considered a charitable donation?
Bryan

It is not a charitable donation as the child, most likely, is not a nonprofit and therefore you don't get tax benefits for the donation. You can try to establish a trust fund for the child but you need to look into that now and NOT later.

 

[tranquility]

The amount you earn at the concert is revenue and you will not get a deduction for the gift. The gift will never be deductible as it is dedicated to a single person. Some may say you are donating your time and the person is charging money (To avoid the income issue to you.), but, you should run your exact plan by a tax professional first to check your plan.