Quid Pro Quo Gifts for Donors

by Steve Fitzgerald
(Durham, NC)

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.

In my $1,000 example is the max $10.70 or $20?

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Church Accounting FAQs.



Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!