Non Cash Contribution of Event Space

by Michelle
(Illinois)

Question regarding non cash contribution:

We recently had an event at a Wine House as a fund raiser. We are a 501 3 c. Can I issue this Wine House a non-cash contribution letter? To have an event there is normally $1500, we paid $200 for wine only. Can I issue them a tax deductible letter for $1300?

Answer

According to the Zondervan 2010 Church and Nonprofit Tax and Financial Guide, "the gift of the right to use property does not yield a tax deduction to the donor."

However, this is a much debated issue so you may want to consult a CPA about it.

Hope this helps.



Church Accounting Package


www.freechurchaccounting.com