IRS Adjusts Rules on Charitable Donations
The Internal Revenue Services has announced
its annual changes affecting charitable donations for the 2009 tax year,
updating the rules to account for inflation.
One change affects the way donors calculate
their charitable deductions. Federal law
allows donors to take deductions only for the portions of their contributions
that are outright gifts. Donors must subtract the value of any item they
receive in return for their gift, not including token items of nominal value.
The revenue service said that a charity
could tell a donor that gifts are fully deductible if:
- The donor gave $47.50 or more
and received a premium worth $9.50 or less. In 2008, those figures were $45.50
and $9.10.
- The donor received premiums
that had a fair market value equal to no more than 2 percent of the amount of the
contribution, or $95, whichever was less. In 2008, the dollar figure was $91.
- The donor received appeals that
contained small items--such as mailing labels--that were worth a total of no
more than $9.50. The amount was $9.10 last year.
The IRS also announced new thresholds figures
for taxpayers who are affected by a limit on overall deductions, including
those for gifts to charitable organizations. In 2009, taxpayers with adjusted gross income of $166,800 or more will have to subtract from their deductions 3
percent of the amount by which their income exceeds that amount. The income figure
was $159,950 in 2008 (Revenue Procedure 2008-66,
Internal Revenue Bulletin, 2008-45)
From
The Chronicle of Philanthropy,
November 27, 2008 Edition.
