Charitable Contribution: Value of a Baked Potato

[Burke]

A recent fundraiser at a local church solicited donations for a mission trip. The organizers offered baked potatoes they prepared themselves in exchange for the donations. My question is, is there a minimum floor which can be ignored for determining a "benefit" received for a donation?

[JohnH]

I'd say any value to be assigned to the goods received would be small potatoes.

[FEDUKE404]

Additional

I'd say any value to be assigned to the goods received would be small potatoes.

They could always ask the French Friar for some advice?

FE

[JohnH]

Now that's a half-baked idea if I ever heard one.
(I'm not inclined to butter anyone up today)

[Jiggers]

How much did one have to donate to receive the baked potato?

[taxea]

the value to deduct from the donation is the cost of the baked potato. What is the retail average to purchase a baked potato? That is what gets deducted from the donation unless the provider of the baked potato can provide the correct amount.

[FEDUKE404]

OK here goes

Monday jokes aside -

Is anyone seriously considering deducting something for getting a baked potato from a church fund-raiser?

In this area, most "little country churches" have BBQs a couple of times each year. Some are so-so, others are legendary. If I pay $10 for a plate, I just don't sit around trying to figure out if I could deduct $1 or $3 or 75¢. I simply enjoy the food and (slowly) move on, no Schedule A involved, feeling a little better that I've also helped the church. A large amount of the food is donated anyway and their "help" is free.

I guess if I paid $100 for a baked potato, I might think otherwise? But then you can get a 99¢ baked potato at Wendy's or an $8 loaded baked potato at a fancy restaurant. Then what is your deduction?

FE

[JohnH]

I'm betting the baked potatoes are about $25 each, and he bought 10 of them.

I like this thread - it has given me some interesting ideas for fund raising projects for mission trips at my church.

[Gary2]

Depending on the amount of the contribution, it may not be necessary to deduct anything.

A quick check in Pub. 526 led me directly to Rev. Procs. 90-12, 92-49, and 2012-41. The latter gives the updated numbers. For 2013, this boils down to: if the donation is $51 or more, and the value of the potato received is less than $10.60, there's no need to reduce the donation by the value of the potatoes.

[MAMalody]

According to the IRS the state purposes of Rev Proc 2012-14 is

<<<SECTION 1. PURPOSE

This revenue procedure sets forth a safe harbor that provides the extent to which an investment by a real estate investment trust (REIT) in a regular or a residual interest in certain real estate mortgage investment conduits (REMICs) may be treated as a real estate asset for purposes of sections 856(c)(4)(A) and 856(c)(5)(B) of the Internal Revenue Code and the extent to which interest from that investment may be treated as derived from interest on an obligation secured by a mortgage on real property or on an interest in real property for purposes of section 856(c)(3)(B). >>>

I must still be tired after tax season however, I don't see the OP answer in this rev proc.

[Burke]

Depending on the amount of the contribution, it may not be necessary to deduct anything.

A quick check in Pub. 526 led me directly to Rev. Procs. 90-12, 92-49, and 2012-14. The latter gives the updated numbers. For 2013, this boils down to: if the donation is $51 or more, and the value of the potato received is less than $10.60, there's no need to reduce the donation by the value of the potatoes.

That's what I was looking for. I did not make this up. The question was posed by the church bookkeeper for purposes of issuing the contribution letter from the church. There was no set price for the baked potatoes. Some people gave a few dollars, some gave several hundred. I figured there had to be some minimal amount which could be disregarded as a "benefit" received. PS: The correct ruling was 2012-41.

[Gary2]

Sorry about the typo, but all three are listed (correctly) in the pub.

[Burke]

And if I had been diligent, that is where I should have looked in the beginning. However, I did learn something I didn't know before, and its good information to post. The information has been passed on to the church, and now I am a hero. Thanks for your input.

[FEDUKE404]

Tater deductions

Just curious:

If someone wishes to give "several hundred dollars" to a church, why even bother with getting a darn baked potato for their efforts??

It boggles my imagination that some saintly bookkeeper at the church would have to take time to send out a pile of IRS-sanctioned receipts for "baked potatoes."

While we all (should) know how to handle charitable contributions and de minimis gifts (think PBS and a cheap coffee mug), this entire scenario seems a bit off the deep end.

FE

[JohnH]

Hey, not so fast there.
I've bought several $10 muffins at my church on Sunday mornings.
(but you're right on target - I didn't ask for a receipt)