View Full Version : Donate for services rendered is it legal to do in a 501 (3) (c)
DrJ3434
Mar 3, 2011, 03:05 PM
Services paid through a donation rather than a fee is it legal to do
Fr_Chuck
Mar 3, 2011, 08:17 PM
Could you please explain this better, your question is not clear. Whose service, whose donation. What fee
pready
Mar 3, 2011, 08:58 PM
Yes, professionals donate their services all the time like in the medical field and it is legal.
DrJ3434
Mar 4, 2011, 08:19 AM
Our company donates to a 501 (3) (c) and in return for that donation they provide us with bottling and packaging is that legal and does the donator get a tax credit?
ebaines
Mar 8, 2011, 07:54 AM
DrJ: please do not use the "comment" feature of this web site to post a follow-up question - please use the answer box instead.
If a donor receives goods or services in exchange for a donation, then the value of the donation is considered to be reduced by the value of the goods or services received. So yes, it is legal for the donor to take a tax deduction (it's a deduction, not a credit), but the amount that can be deducted is less than the amount actually donated. The 501c(3) is responsible for providing a receipt to the donor and indicating the amount that may be taken as a charitable donation.