When a donor receives goods or services in consideration for a contribution, only the excess of the amount of the contribution over the value of the goods and services received in return is deductible for income tax purposes. In addition, where the amount of the contribution exceeds $75, the charity is required under the “quid pro quo” rules of IRC § 6115 to provide a written statement to the contributor providing a good faith estimate of the value of the goods and services provided.
In Rev. Proc. 90-12, 1990-1 COB. 471, the IRS provides specific “safe harbor” rules for situations where “token benefits” received by a donor in the context of a fund-raising campaign will be treated as having such insubstantial value that they will be disregarded for purposes of the foregoing rules under IRC § 6115.
Where these safe harbor rules are met, the benefit received by the contributor is also disregarded for purposes of the “contemporaneous written acknowledgment” rules under IRC §170(f)(8) applicable to contributions of $250 or more.
More ... Token Benefit - Limitations for 2015 Charitable Contributions
See your tax adviser before implementing any tax strategies.
No comments:
Post a Comment