November 25, 2018

Are those Carols by Candlelight Hero Tickets Tax Deductible or Not?

Who wouldn't want to help sick children and veterans at the same time?

Steve Vaus invites you to do just that by buying "hero tickets" to be distributed to veterans/ first responders for a performance of his annual shindig called "Carols by Candlelight".  According to the Carols by Candlelight website,  the proceeds from the 2-day event go to Rady Children's Hospital.

That sounds lovely and warm and heart melting, but Steve Vaus is the one who decides how much he and his production company and the other performers are paid before he cuts a check to Rady's. Does he pocket $250,000?  More? Less? Nobody knows. Steve Vaus Productions is a for-profit sole proprietorship, so there is no way to find out just what percent of donations for hero tickets or any other donations actually end up benefitting sick kids.

It is also impossible to find out how many "hero tickets" are sold and/or distributed. Steve Vaus could give away the tickets himself without asking for a $25 ea donation, but that would be $25 less in his pockets.  Although Steve Vaus has prominently posted the 501c3 tax ID number of a nonprofit on his website, stating that the nonprofit, 4 Community Solutions, is doing business as Carols by Candlelight, it turns out that 4CS doesn't handle ALL of the business of Carols by Candlelight, just selected business of CbC.  Exactly what part of the 4CS business the nonprofit handles is a bit squishy.

Recently I received a copy of an email from someone who bought a "hero ticket" to be donated to a veteran. His receipt stated that his donation was not received by  4CS or a Carols by Candlelight account, but by Steve Vaus Productions. Steve Vaus Productions is a sole proprietorship, which means the money ended up in Steve Vaus' pocket.  The man sent an email to Steve Vaus, asking for a tax deductible receipt:

From: name deleted
Date: November 9, 2018 at 3:56:34 PM PST
To: "stevevaus@cox.net" <stevevaus@cox.net>;
Subject: Receipt
Mr. Vaus,
Today I donated to Carrols by Candlelight for the military.  I noticed that the money went to Steve Vaus Productions.  I didn’t get a tax deductible receipt from Candles by Candlelight.  For tax purposes, would you please provide the (tax-deductible) receipt from Candles by Candlelight either via email or by regular mail.  I would appreciate it.  To make it easier to find my donation, here is my purchase number 226562691837576.
Thank You,
name deleted

Steve Vaus quickly responded:
From: Steve Vaus <stevevaus@cox.net>;
Date: November 10, 2018 at 12:02:59 PM PST
To: name deleted
Subject: Re: Receipt
Our office is closed however I saw your email. 
I apologize for any confusion that led you to believe gift tickets are a deductible donation. They are not and there is nothing on our website that indicates otherwise. 
I have issued you a refund. If you have further questions I will be back in the office next Thursday. 
SV
(PS - blame Siri or Spellcheck for any mistakes in this email.)

I checked the Carols by Candlelight website, and sure enough, this little notice is still posted:

Our fiscal agent, 4Community Solutions is a qualified 501(c)(3)
Taxpayer ID# 26-1722021
4Community Solutions – dba Carols by Candlelight
18402 W. Bernardo Drive, San Diego, CA 92127

Don't bother checking 4CS's website for information.  Most of the website has been removed since I called them and asked for some information about their sponsorship of Carols by Candlelight.  None of my questions have been answered.

Yesterday,  someone forwarded another email to me that came from Carols by Candlelight/Steve Vaus. Vaus  clarified (OK, maybe muddied is a more apt description) the tax exempt status of hero ticket purchases:

From: Carols by Candlelight [mailto:stevevaus@cox.net
Sent: Friday, November 23, 2018 2:31 PM



I am  wondering how  4CS "doing business as" Carols by Candlelight works.  Because it seems like Steve Vaus Productions is also doing business as Carols by Candlelight.  Can there be two entities doing business as an event at the same time? Does Vaus Productions need to file a fictitious business name for Carols by Candlelight the way 4 Community Solutions did?  Is this a normal business practice to have some donations for the same item go into a nonprofit and others go into a sole proprietorship? Is this a common business model?

If you do plan to buy hero tickets, please note that they are not tax deductible unless you make arrangements with Steve Vaus.