As I understand the IRS regulations, if I give a gift to a donor who has contributed over $53 I have certain limits of the cost of gifts I'm allowed to give them AND the full contribution maintain its tax deductibility.
I'm confused by the token gift exception and the low cost exception. Let's say a donor gave a $1,000 donation. Is the limit of the cost of the gift back to the donor limited at $10.70 (or whatever the current token item limit is) or is it maxed out at 2% of the gift or a max of $107.
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