Donation Receipt

[David1980]

materials to do the cleaning is to the non-profit.

Well maybe, they might already be deducting those materials as supplies for the cleaning business.

[taxea]

Well maybe, they might already be deducting those materials as supplies for the cleaning business.

you could be right about that. So like we have all said all along....no donation.

[Burke]

As for the $$$ donors, I'm not sure if making a gift "in someone else's name" properly constitutes a true gift by that honored individual. If anything, the folks who forked over the actual funds to the VFW would have the allowable tax deduction.
FE

I agree. Perhaps the VFW did receive such a cash donation from "others." But it cannot be allocated to another person for tax purposes. It would be deductible (assuming a deduction is allowed) by the person(s) who made it. A simple phone call to the VFW office should clarify the whole situation.

[jsamans]

Obviously, we're all getting pieces of second- or third-hand information here, but this is what I think is going on based on the various explanations provided throughout the thread:

1. Michelle did some substantial amount of volunteer work for the VFW post, providing cleaning services at no charge. We all know and agree that the delivery of services to the VFW does not generate a deduction.

2. People who benefited from Michelle's cleaning services and generosity also knew this, and they wanted to reward her for your time and effort. They therefore took up a collection amongst themselves to raise money that they in turn gave to the VFW Post in her name. The originators of this money receive no deduction for having given the money, because the giving is not attributed to them.

3. The money given to the VFW Post by various people in Michelle's name constitutes for purposes of taxes a series of gifts from each giver to Michelle, who then gave these gifts in the aggregate to the VFW Post. That the money was not handed to her is irrelevant; that the money flowed in this manner would be deemed to have occurred by virtue of the verifiable evidence of contributions. The gifts themselves are each well below the limit that would require filing notice, so there's no problem here.

4. Michelle does not need to claim the gifts as income, and she can claim the deduction to the fullest extent permissible given the VFW Post's tax status and relative to her adjusted gross income.

Thoughts?

[Burke]

I disagree.
Had the monies been given to her directly and she in turn donated it to the VFW, I would concur she could take the alleged deduction, if eligible. But because it was "funneled through" the VFW, and she worked for them, the only way that would work (IMO) is if the VFW attributed that amount as compensation to her. Note that a similar situation has been discussed on this board before, in regard to "love offerings" made to a church, and given to a minister.