Charitable Contributions

Since artists are always being asked to donate something, here is a brief list of things you need to know about donations.

• A charitable gift is a voluntary transfer of money or in-kind goods or property that is made to a 501(c)(3) organization, made with no expectation of a commensurate return.  If the donor receives a financial or economic benefit in return for the gift, it is not a deductible contribution, except if the donation surpasses the benefit to the donor.
  
  
• Only donors who itemize deductions on their federal or state income tax returns may deduct gifts to qualifying nonprofits.
  
  
• A donor must keep records of their contributions.  For  contributions less than $50, a canceled check, credit card receipt or cash receipt, will suffice.  For contributions of $250 or more, the donor must obtain a written acknowledgment from the charity with the date and the amount of the contribution and a list of benefits, if any, and an estimation of the value of those benefits.
  
  
• There are special rules as to what can be donated, as in-kind services do not always count.  It is a good idea to check whether what your donating will be a tax deduction if you need one.
  

See the Independent Sector Web site at  www.IndependentSector.org