Colleyville Woman's Club conducts special events to raise charitable funds. It also accepts donations from its members and others which are generally deductible for federal income tax purposes by individuals as charitable donations because of its qualification as a 501(c)(3) organization. Area businesses see CWC activities as a great way to market their products and services, so they support the events with donated items and services and cash sponsorships. Since CWC is an all-volunteer organization, no overhead is deducted from the events' net revenues -- only the actual costs of staging the events. Member dues generally cover the costs of managing the Club itself.
At fundraising events, the tax deductible portion of amounts paid by attendees and supporters is limited to the excess, if any, of the value of items received. CWC specifies the value of meals in printed materials. The amount paid for any purchased items, such as in auctions, is deemed to be equal to their value.