I've been looking but can't find a definitive yes or no based on the new tax law that was introduced last year. The Hokie Club website says that they're reviewing the tax law, but that hasn't been updated since January. Other online sources say that 80% of the donation is tax deductible. Anybody have the ability to shed some light on this?
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Because the IRS/Federal government haven't given out firm guidance yet.
Hmmm, I'm glad they're taking their time.
It's because they didn't have guidance prior to the vote and so much changed. Even now parts of the bill are still being worked out.
My impression has been that
thisthe non-premium seating portion of a donation would be a deductible charitable donation, but most people will take the standard deduction as thatmightwill be higher.If you're on the fence, donate!
The standard deduction has been increased so much that itemizing no longer benefits the wife and I. That doesn't mean we will stop donating.
I'm not a tax expert whatsoever, but prior to the change did a bunch of research on this and decided to make a multi-year donation at the end of 2017 that VT credited toward my contribution for years ahead. Had found a bunch of articles on it that made press because big SEC donors were front running their donations due to the tax law (change / potential change). Took the benefit in one year to avoid the potential of losing in later years. When I called VT to make the donation over the phone they were pretty upfront that I wasn't the only one doing this and that they would credit it forward.
All that said, the situation is vague from everything I understand, and it is my opinion schools are not being very upfront about it because of course it doesn't help the cause donation wise.
Would be awesome if anyone on here knows more.
I believe my parents are doing something like this/have done large gifts before spread out over years.
Previously VT let you take benefits early and you were exempt from the minimum seat fees if you pledged a large donation over 5+years. Now I believe my parents are using some sort of charitable fund where they can put money in it now and then can only use it for charities in future years. I am not sure how it works with benefits against the new tax law, but their accountant is handling it.
Everything I have seen says that you cannot deduct any donation which affects the ability to obtain seating for athletic events; if I remember correctly, to be able to deduct the donation the institution must specify that it does NOT affect that ability -usually in the form of a checkbox stating that.
From IRS publication 5307 on irs.gov :
'Repeal of deduction for amounts paid in exchange for college athletic
event seating rights
No charitable deduction shall be allowed for any amount paid to an institution of higher education in exchange for which the payor receives the right to purchase tickets or seating at an athletic event.
THIS MEANS THAT... "Seat license" or other fees paid in exchange for the right to buy seating at college athletic events are no longer deductible.'
Sorry to be late as I imagine you were looking for help before the calendar changed. Skippypbm is correct.
There are two caveats to this though.
One - if you decline your benefits in writing, your gift would be tax-deductible. This should be done at the time of the donation. I would call the VTAF if you are interested in this option.
Two - There is a vague area that is open to interpretation which has not been ruled on at this point. The gray area would be donations to VT Athletic Fund to a fund other than the Hokie Scholarship Fund (HSF). Since only donations toward the HSF count towards minimum seat donations, the interpretation is that donations to other VTAF funds (e.g. sport specific, or general) which do not count towards the minimum seat donation would be tax-deductible at 80%. I am on multiple mailing lists for other schools due to purchasing tickets to so many away games. Some schools have stated this as their interpretation-- with the caveat that you should consult a tax advisor-- but Tech is being more conservative and not outwardly giving the same guidance.
If you donate to a fund other than the HSF, you will still get points for the dollar amount of the donation (2 points per $100 donation), but it won't count towards the minimum seat donations needed for season tickets and will not count towards the consecutive years giving to the HSF.
As some others mentioned, most folks will take the standard deduction now since they were doubled in the same tax law change. If you own a house (esp in NOVA), you may still be itemizing though.
Particularly likely still itemizing (in states like VA with an income tax at least ) if you are SINGLE and own a home worth 200k or more due to the elimination of the personal exemption which WAS just over 4K which ate up most of the increase in standard deduction from approx $6400 to the new 12K(leaving a net increase of only about $1600- because of the retention of the SALT(State And Local Tax) deduction-albeit limited to max of 10K. That deduction plus the mortgage interest deduction will for many single folks still exceed the new 12K standard deduction and any OTHER charitable deductions. In my own case the itemized deductions still total approx 17-18K. With the reduction in marginal tax rates as well as the increase in size of the lower brackets, the new laws will lower my taxes by about 1-1.5K -substantial? no-but better than an increase!