Tax Planning and Compliance for Tax-Exempt Organizations, 6th Edition

CHAPTER 24Deductibility and Disclosures

• § 24.1 Overview of Deductibility
  • (a) Contribution Defined
  • (b) Limitations on Deductions
• § 24.2 The Substantiation and Quid Pro Quo Rules
  • (b) Substantiation Rules
• § 24.3 Valuing Donor Benefits

§ 24.1 Overview of Deductibility

(a) Contribution Defined

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The challenges in valuing virtual currency can be found in Chapter 27.

(b) Limitations on Deductions

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Individuals who report itemized deductions on their individual income tax return may generally claim a deduction for charitable contributions made to qualifying charitable organizations. ¹ These limits typically range from 20 to 60 percent of adjusted gross income (AGI) and vary by the type of contribution and type of charitable organization. For example, a cash contribution made by an individual to a qualifying public charity is generally limited to 60 percent of the individual's AGI and for private foundations up to 30 percent. Excess contributions may be carried forward for up to five tax years. During tax year 2021, up to 100 percent of an individual's AGI could be reported for cash contributions to public charities. The corporate deduction for eligible charities during the year 2021 was 25 percent, up from 10 percent. ²

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The full market value of privately-held stock donated to a Fidelity Investments Charitable Gift Fund was deemed fully ...