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Generally, you can
deduct your
contributions of money
or property that you
make to, or for the use
of, a qualified
organization. A gift or
contribution is “for the
use of” a qualified
organization when it is
held in a legally
enforceable trust for
the qualified
organization or in a
similar legal
arrangement.
The contributions must
be made to a qualified
organization and not set
aside for use by a
specific person.
If you give property to
a qualified
organization, you
generally can deduct the
fair market value of the
property at the time of
the contribution. See
Contributions of
Property, later.
Your deduction for
charitable contributions
is generally limited to
50% of your adjusted
gross income, but in
some cases 20% and 30%
limits may apply. In
addition, the total of
your charitable
contributions deduction
and certain other
itemized deductions may
be limited. See Limits
on Deductions, later.
Table 1 in this
publication lists some
examples of
contributions you can
deduct and some that you
cannot deduct.
Contributions From Which
You Benefit
If you receive a benefit
as a result of making a
contribution to a
qualified organization,
you can deduct only the
amount of your
contribution that is
more than the value of
the benefit you receive.
Also see Contributions
From Which You Benefit
under Contributions You
Cannot Deduct, later.
If you pay more than
fair market value to a
qualified organization
for merchandise, goods,
or services, the amount
you pay that is more
than the value of the
item can be a charitable
contribution. For the
excess amount to
qualify, you must pay it
with the intent to make
a charitable
contribution.
Example 1.
You pay $65 for a ticket
to a dinner-dance at a
church. All the proceeds
of the function go to
the church. The ticket
to the dinner-dance has
a fair market value of
$25. When you buy your
ticket, you know that
its value is less than
your payment. To figure
the amount of your
charitable contribution,
you subtract the value
of the benefit you
receive ($25) from your
total payment ($65). You
can deduct $40 as a
charitable contribution
to the church.
Example 2.
At a fund-raising
auction conducted by a
charity, you pay $600
for a week's stay at a
beach house. The amount
you pay is no more than
the fair rental value.
You have not made a
deductible charitable
contribution.
Athletic events.
If you make a payment
to, or for the benefit
of, a college or
university and, as a
result, you receive the
right to buy tickets to
an athletic event in the
athletic stadium of the
college or university,
you can deduct 80% of
the payment as a
charitable contribution.
If any part of your
payment is for tickets
(rather than the right
to buy tickets), that
part is not deductible.
In that case, subtract
the price of the tickets
from your payment. 80%
of the remaining amount
is a charitable
contribution.
Example 1.
You pay $300 a year for
membership in an
athletic scholarship
program maintained by a
university (a qualified
organization). The only
benefit of membership is
that you have the right
to buy one season ticket
for a seat in a
designated area of the
stadium at the
university's home
football games. You can
deduct $240 (80% of
$300) as a charitable
contribution.
Example 2.
The facts are the same
as in Example 1 except
that your $300 payment
included the purchase of
one season ticket for
the stated ticket price
of $120. You must
subtract the usual price
of a ticket ($120) from
your $300 payment. The
result is $180. Your
deductible charitable
contribution is $144
(80% of $180).
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