LLL in the USA WORLD BREASTFEEDING WEEK CELEBRATIONS
FREQUENTLY ASKED QUESTIONS
Q: Are there any incentives we can give that do not reduce the amount the donor can deduct on her income tax?
A: Yes. According to IRS Publication 1771, goods
and services are considered to be insubstantial if the payment occurs in the
contex of a fund-raising campaign, in which a charitable organization informs
the donor of the amount of the contribution that is a deductible contribution,
and:
- the fair market value of the benefits received does not exceed the lesser
of 2 percent of the payment or $83, OR
- the payment is at least $41.50, the only items provided bear the organization's
name or logo (e.g., calendars, mugs, or posters), and the cost of these items
is within the limit for "low-cost articles," which is $8.30.
Free, unordered low-cost articles are also considered to be insubstantial.
FAQ Index
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