When “free” coupon books are given to donors who make a minimum donation to my organization, can the full donation be deducted?
John H. Taylor replied: The above is a totally false and misleading statement. I suggest you review the applicable IRS regulations and publications, especially IRS Publication 1771 — “Charitable Contributions” (at http://www.irs.gov/pub/irs-pdf/p1771.pdf). If a donor receives ANYTHING in exchange for a gift of $75 or more they must be told what is the fair market value of the benefit they are receiving and reduce their gift by a like amount to determine the net charitable contribution. Furthermore the IRS stipulates that by setting a minimum “donation” amount at which point your coupon book would be given, you have, in fact, established the FMV of the item and, therefore would disallow any charitable deduction except for amount paid over and above this minimum amount. This remains true even if the donor does not use all of the coupons. If you want further clarification on this I urge you to review paragraph 2004 of “Charitable Giving and Solicitation.” Roger McCrummen added: [Any] stat
Related Questions
- When "free" coupon books are given to donors who make a minimum donation to my organization, can the full donation be deducted?
- Given that the Trust’s minimum grant size is $50,000, is there a requirement for minimum organization budget?
- Can my organization decide the entry fee (minimum donation) required to play?
