Charity or Not

[Kram BergGold]

Elderly client was getting Meals on Wheels. The non proifit administering the program asked recipients to make donations to the agency if they could affoird it. My client made contributions to the non profit as she could afford it. Are they deductible or would this be considered getting goods and servcies?

[David1980]

I don't see this as any different than donations to a church that one attends.

While the taxpayer does receive a benefit from the organization (church service or meals) that benefit isn't connected with the donation itself (they can attend the church / get the meals regardless.)

It's different than say girl scout cookies where the donation is required if you want the box of cookies.

[JohnH]

As long as the charity is a 501c(3) then the donation is tax deductible. There isn't an exchange taking place, so this is quite different than bying a box of girl scout cookies, for example.

I have read that some Meals on Wheels local organizations don't send out statements. So the taxpayer would not have a year-end summary with the "No Goods Or Services" boilerplate. But that is not a problem provided the taxpayer keeps each donation under $250 and retains the canceled checks. The canceled check is really all the proof they need anyhow, provided they stay under the $250 per donation threshhold.

[Snaggletooth]

Meels on Wheels??

There is value received for these donations, but as long as the donations exceed the value of the meals, there is a contribution to that extent. If she pays for the meals as-they-come, this simplifies the matter and allows full deductibility.

In our modern-day rush for a paperless society, very few banks will produce a hard copy of a payment without charging a ridiculous fee. However, in case of an audit the IRS receives an electronic transcript and a hard copy should not be required of the taxpayer anymore. IRS can take a position that checks are not enough proof and insist on a receipt. Meels and some other charities are notorious for not giving receipts but I don't know what to do about that.

[TAXNJ]

??

There is value received for these donations, but as long as the donations exceed the value of the meals, there is a contribution to that extent. If she pays for the meals as-they-come, this simplifies the matter and allows full deductibility

The second sentence says allows full deduction? Thought as said in first sentence "as long as the donations exceed the value of the meals, there is a contribution to that extent".

If she receives "services" (or value) how is it a "full" contribution?

[S T]

Several years ago,. actually now seems like many years ago , (probably year 2005- 2006, my mother-in law received "Meals on Wheels" that was offered to her through the Senior Apt Living she was in - It was set up through Social Services, and it was a $ 3 per day fee (Oregon) - Could have been her income/assets and that is why she was charged - I never deducted the amount as a Charitable Contribution as she received a "meal" that was more than substantial and she would eat part at lunch and part at dinner.

Moving forward to year 2014 and 2015, times might have changed, sadly my mother in law is no longer with us, and as of now I do not have any other senior clients on the program.

I do believe the program is terrific and is a great assistance to many of our seniors and disabled that do not have other resources

I believe an additional amount as a donation, not relating to the meals the taxpayer is receiving should be a charitiable contribution, if in fact they qualify for the Schedule A - Itemized Deductions.

Sandy

[Kram BergGold]

Went To The Source

First, thanks to everyone that responded. I called the agency. They confirmed that Meals on Wheels is free to all and there is no obligation to make a contribution. It is just suggested that you do. So as there was no prid pro quo, I will take the charitable deduction.

[Roberts]

I believe 100% of donations to Meals on Wheels are tax deductible regardless of whether or not you are getting meals. As long as it is documented and the payer itemizes and can benefit from the payment, it's deductible. If you give $500 to the Red Cross and then are forced to stay in a Red Cross shelter after a storm - doesn't mean your donation becomes non-deductible.

[JohnH]

Exactly. There is no exchange of goods/services for the contribution, therefore the contribution is fully deductible. The fact that the person receives free meals is a totally separate issue, unless there were some sort of linkage between the meal and the contribution.

[TAXNJ]

Excellent

First, thanks to everyone that responded. I called the agency. They confirmed that Meals on Wheels is free to all and there is no obligation to make a contribution. It is just suggested that you do. So as there was no prid pro quo, I will take the charitable deduction.

When in doubt and guessing - go to the source for the answer to defend your position. Great post.