Donations to non profit

[GTS1101]

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

[Uncle Sam]

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%.

[Snaggletooth]

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.

[GTS1101]

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.

[GTS1101]

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.

[ATSMAN]

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.