The Nonprofit FAQ

Is a donation to a government agency tax deductible?

Someone asked Don Kramer, a philadelphia attorney who publishes http://www.nonprofitissues.com">"Nonprofit Issues": If an individual or corporation makes a contribution to a public school district, is it considered a tax-deductible charitable contribution, or must the gift be given to a separate 501(c)(3) associated with the school district? His answer (on June 9, 2010): A gift to a public school district or other governmental entity is fully deductible, even though the entity does not have a separate 501(c)(3) recognition, so long as the gift is used exclusively for public purposes. A charitable contribution is defined in Section 170(c) of the Tax Code and includes gifts to governmental units, (c)(3)s, and certain gifts to veterans organizations, fraternal groups and cemetery companies. Posted 6/9/10 -- PB