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How does donor account for gift?

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How does donor account for gift?

If my 501(c)(3) offers benefits (or small gifts) for membership/donation monies, how does that impact the amount which the donor can claim as a tax deduction for the gift?

Normally a charity should notify a donor if the charity gives goods or services in return for a contribution (and by law must give such notice if the payment is more than $75) so that the donor may deduct only that portion of the contribution in excess of the value of the goods or services received in return. If the gift is more than $25 (indexed for inflation so that for tax year 2021 it is $56.50) and certain souvenir items like pens or mugs which cost the charity less than $5 (indexed for inflation doe 2021 to $11.30) are given in return, the donor does not have to reduce the contribution by the value of the goods. See Ready Reference Page "Charities Must Set Value on 'Quid Pro Quo' Gifts."

Monday, September 13, 2010

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