According to Dictionary.com a contribution is synomous for a gift, donation, or benefaction. Since a gift does not occur without an irrevocable exchange, a contribution is not considered an allowable deduction unless the contribution is unconditional. The donor receives no personal benefit in exchange for the gift.
IF the donor receives a benefit for the gift, the difference between the gift and the benefit is the amount that is deductible. Here's an example...
Donor Brown contributed $100 to a charitable dinner. The value of the dinner was $50, therefore the amount deductible for the contribution to the charity is $50...($100 contribution less $50 dinner received).
See our next post on contributions relating to timing.
Posted by Becky DaVee
