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    Donations to non profit

    I have a client who is the president of a 501c3 she created in 2014. In 2015 she donated 50,000 to her non profit to purchase equipment and supplies for the non-profit. As the president of the non-profit is she entitled to take a charitable contribution deduction on her personal return for this deduction if the non-profit can provide a receipt for the contribution or is it a conflict of interest because she is the president? She does not want to jeopardize the non profit or cause any problems with it.

    GTS1101

    #2
    Non Profit

    When did she donate the $ 50,000?
    Before or after it got the IRS exemption?

    Then you need to deal with whether it's a 50% AGI donation or 30%.
    Uncle Sam, CPA, EA. ARA, NTPI Fellow

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      #3
      Property or Non-Cash

      I would not buy this stuff and then give it. Donate the money to the non-profit and then let THEM buy it.

      It's probably OK the way it happened, but I certainly would hate to itemize this as a non-cash contribution.

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        #4
        Originally posted by Uncle Sam View Post
        When did she donate the $ 50,000?
        Before or after it got the IRS exemption?

        Then you need to deal with whether it's a 50% AGI donation or 30%.
        She made the donation after she got the IRS exemption.

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          #5
          Originally posted by Snaggletooth View Post
          I would not buy this stuff and then give it. Donate the money to the non-profit and then let THEM buy it.

          It's probably OK the way it happened, but I certainly would hate to itemize this as a non-cash contribution.
          She donated the 50,000 in cash to the non-profit and the non-profit purchased the equipment and supplies.

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            #6
            Taxpayer should keep all records and a pair trail to make sure upon audit it can be demonstrated that it was an arms length transaction. I think the chances of an audit are much more in a situation where the 990 is going to show one large donation from one taxpayer who created the non-profit.
            Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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