If a donor makes a credit card donation to a 501(c)(3) public charity, may the charity pay the credit card fee out of the donor’s gift? If so, what contribution deduction may the donor claim?
Yes. A charity may pay the costs of fundraising out of the funds raised and the typical credit card fee is a relatively minor cost, especially compared to printing, mailing, or paid solicitors. The donor’s deduction is based on the amount given, not the net received by the charity.
Wednesday, July 29, 2009
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