[View Article List] [Go Back]

Tax Twist on Donations with Benefits

Be aware of special tax rules for "quid pro quo" charitable contributions. For instance, if you receive something in return for making a gift, your deduction is generally limited to the difference between your donation and the value of the benefit received.

Case in point: You and your spouse attend a fund-raising dinner that costs $150 a couple. If the stated value of the meal is $50, your deduction is limited to $100. Note: The charitable organization is obligated to provide a written acknowledgement for donations above $75 (even if the value of the benefit is less than $75).

Certain nominal goods received in exchange for making contributions, such as coffee mugs and T-shirts, may be exempt from these rules.

If you are not receiving any benefits for charitable gifts, make sure that fact can be substantiated. Your tax advisers can provide further insight.

[View Article List] [Go Back]