West Hempstead, NY asked in Education Law and Tax Law for New York

Q: Can the non refundable tuition pre-paid for a private school be converted to a tax deductible donation?

My wife and I changed our daughter’s school from private to charter June 2017 due to financial hardship before she began the 2017/2018 year.

School in question offered a tax donation receipt for family friend previous year but are refusing to do same for us, firstly citing that they are legally not allowed to. When reminded of the precedent they set, they now changed their stance saying it was new school policy based on advice from lawyers not to convert tuition to donation and give receipts if the child does not attend the school.

Is this right what they are doing? What are they benefiting from by not giving a receipt?

It’s a large sum of money to just give up on and let dissolve into thin air. Is there anything I can do to get the receipt?

Thank you in advance!

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1 Lawyer Answer
Barry E. Janay
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Answered
  • Livingston, NJ
  • Licensed in New York

A: It's possible that they are being truthful and relying on their advice of counsel. It's possibly because there is a different entity that accepts donations (like an irrevocable trust for instance or a fund). If the tuition was deposited into the operating account they can't just make an accounting entry to call it a donation. You may want to reach out to them and get an agreement in place to give them a donation separately and once the donation hits they refund you the tuition deposit, wouldn't hurt to see if they'd agree to that.

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