Tour and Tax-Exempt status

Did you see this golf club review?

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Scott Rushing
Scott Rushing's picture
Tour and Tax-Exempt status

If you haven't read the ESPN report on the PGA Tour and how their tournaments are run via charitable organizations and how the benefit from the tax-breaks given under that scenario, it's worth a 10 minute read here (http://espn.go.com/espn/otl/story/_/id/10089803/pga-tour-tax-breaks-help...).

In essence, Outside The Lines had an analysis of the data from 2011 done and found that on average, the amount of money provided to the charity was about 16%, and not as high as watchdog groups contend it should be. On the surface that looks bad and looks as if the PGA Tour is trying to side step paying taxes by having the charity cover the costs of things like player transportation, advertising, etc.

But I also think you need to consider the other intangibles that come along with a tournament, things like the economic impact to the community of having it (or NOT having it), the media exposure which again likely leads to higher contributions from individuals and companies, and the fact that outside the tournament event itself, the PGA has donated a tremendous amount of money to charity.

So while I'd love the costs to run these events to be less, I think the positives outweigh the negatives.

other perspectives?