Goodworld now includes a Tax Deductible Amount field in exports and reports, giving organizations clearer insight into how much of each transaction may be considered tax deductible.
This is especially helpful for events, auctions, and item-based purchases, where the gross transaction amount may be different from the tax-deductible amount.
For example, a $100 online donation is typically 100% tax deductible, while a $100 event ticket is generally not tax deductible because the purchaser is receiving admission or another benefit in exchange.
Gross Amount vs. Tax-Deductible Amount
Goodworld tracks both:
Gross Amount: The full transaction amount paid by the purchaser or donor
Tax Deductible Amount: The portion of the transaction that may be tax deductible
In many cases, these amounts are the same. In other cases, Goodworld calculates tax deductibility differently based on the transaction type.
How Goodworld Calculates Tax Deductibility
Goodworld currently supports three primary categories of tax deductibility:
1. Online Donations: 100% Tax Deductible
Online donations are treated as fully tax deductible.
For example:
If a donor makes a $100 donation, the export will show:
Gross Amount: $100
Tax Deductible Amount: $100
This applies to standard online donations, including donation-based levels and items where the donor is contributing toward a cause, fund, or impact item rather than purchasing something for themselves.
2. Tickets and Items: 0% Tax Deductible
Event tickets and item purchases are treated as not tax deductible by default.
This is because the purchaser is receiving something in return, such as:
Admission to an event
A meal or experience
Merchandise
A physical item
For example:
If someone purchases a $75 event ticket, the export will show:
Gross Amount: $75
Tax Deductible Amount: $0
The same logic applies to item sales, such as purchasing a t-shirt or other item for personal use.
3. Auction Items: Gross Amount Minus Market Value
Auction items are calculated differently because the purchaser may pay more than the item’s fair market value.
For auction items, Goodworld calculates the tax-deductible amount as:
Tax Deductible Amount = Gross Amount - Market Value
For example:
If a bidder wins an auction item for $500 and the item’s market value is $300, the export will show:
Gross Amount: $500
Market Value: $300
Tax Deductible Amount: $200
In this case, the tax-deductible portion is the amount paid above the item’s market value.
Where Tax-Deductible Amount Appears
The Tax Deductible Amount field is available in Goodworld data exports and reports.
This allows admins to more clearly report on:
Fully deductible donations
Non-deductible ticket and item purchases
Partially deductible auction purchases
Tax-deductible amounts may also be used in relevant receipt and invoice merge fields, depending on the transaction type.
Why This Matters
The Tax Deductible Amount field helps organizations provide more accurate reporting across mixed transaction types, especially for events that may include donations, ticket purchases, item sales, and auctions.
Instead of relying only on gross transaction totals, admins can better distinguish between:
Total revenue received
Amounts that may be considered tax deductible
Purchases where the donor received goods, services, or event admission in exchange
Transaction Type | Tax Deductibility |
Online donations | 100% tax deductible |
Donation levels/items | 100% tax deductible |
Event tickets | 0% tax deductible by default |
Item sales | 0% tax deductible by default |
Auction items | Gross amount minus market value |
Goodworld’s tax-deductible amount calculations are designed to support clearer reporting, but organizations should consult their own tax or legal advisor for guidance on specific tax deductibility rules and donor receipt language.
If you have questions about Tax Deductibility Controls, schedule a support call with our success team.