Charitable contributions - or not

[Jesse]

Client has an envelope full of receipts for items donated to their church. $1680 worth of holiday decorations, blinds, tea for the meetings, pilar candles etc....Are these legite charitable contributions?

No one donation was over over even $100 and they said the church used to add it to her year end receipt but this year they told them they should account for it on their own.

[Burke]

Charitable Contributions

See Pub 17, Chapter 24, Page 161, Deductions of Less Than $250: "If you make any noncash contribution, you must get and keep a receipt from the charitable organization showing: 1) The name of the org, 2) date and location of contribution, and 3) a reasonably detailed description of the property." Perhaps the taxpayer could type this up and have the church sign it.

[Kram BergGold]

Question

Did your client buy the items and then within a short period of time give them to the church or were these items used by the taxpayer and then given to the church.

[Jesse]

Thanks for the responses. The items were bought and immediately given to the church, that is not what I'm squirming about. But is anything you give to the church a deduction?

If I don't like the color of the curtains so I buy them new ones is it automatically a deduction?

If I think the decorations are too drab so I buy them new ones does that make it a deduction?

If the St. Thomas committe comes in to hang the decorations and I buy them tea and crumpets does that make it a deduction?

If the candles are getting dim and I want them to have a bigger brighter candle as opposed to the cheap ones they've been buying does that make it a deduction?

[JohnH]

Yes, if

I'd say that you can count it as a contribution even if you want to pay the cost of gold plating the steeple, as long as the church ACCEPTS the contribution unconditionally and uses it to further its exempt purposes. In any case, you should obtain a written acknowledgement form the church that it received the item(s).

[Kram BergGold]

My view

My understanding is you have a cash contribution here. So if the church wanted the items to use in the church they are deductible. If the Church has a resale shop and the items go there they would be deductible. If the Church throws them out I would say they are not deductible. If the client does not have a receipt or acknowledgement letter I would not deduct these things. The client has no proof. Anyone could have a bunch of receipts and say I gave these to the church. Cash contributions must be backed by proof starting in 2007.

[Jesse]

My understanding is you have a cash contribution here. So if the church wanted the items to use in the church they are deductible. If the Church has a resale shop and the items go there they would be deductible. If the Church throws them out I would say they are not deductible. If the client does not have a receipt or acknowledgement letter I would not deduct these things. The client has no proof. Anyone could have a bunch of receipts and say I gave these to the church. Cash contributions must be backed by proof starting in 2007.

I am also going to write something up to be signed explaining that the client is responsible for an acknowledgement letter from the church. I'm thinking this makes them aware and turns the burden of proof onto them.

I'd say that you can count it as a contribution even if you want to pay the cost of gold plating the steeple, as long as the church ACCEPTS the contribution unconditionally and uses it to further its exempt purposes. In any case, you should obtain a written acknowledgement form the church that it received the item(s).

Even the tea and crumpets bought for the volunteers that are doing the gold plating? I get your point but it just doesn't seem right. Someone else on this board said "a gift is from the heart" and I don't know how many times I have used that phrase already this year.

[JohnH]

Not our job

Our clients pay us to help them navigate a maze of arbitrary and sometimes inconsistent, illogical tax rules to get them the best possible legal result. I don't see it as our job to make any sort of determination about what is "right" according to our personal definitions.

And yes, I'd say the donated tea & crumpets are deductible, provided I'm not personally consuming an unusually large amount of them while I'm helping the St Thomas committee gold plate the steeple.

[Jesse]

Thanks for the help.