The Nonprofit FAQ

What is a Donation?

Chris wrote on January 23, 1997: Basically, a "donation" is the gift of property to a nonprofit organization. In order to qualify as a donation, the ownership of the property must pass to the recipient, and nothing of substantial value may pass to the donor. Things like raffle tickets are not considered donations because the donor receives something of value -- specifically the chance to win a prize. More: In order to be tax-deductible, the gift has to qo to an organization that has been "recognized" by the IRS as qualified under the tax code. See http://www.idealist.org/if/i/en/faq/191-71/345-248 for more about this issue. If there is any "quid pro quo" involved, like the premium you might get if you become a member of a public broadcasting groups, then its value has to be subtracted from the amount of the gift when calculating any tax-deduction that might be allowed. See http://www.idealist.org/if/i/en/faq/424-182/62-42 for more about this question. Gifts to individuals, or to help a specific person with expenses of being a volunteer, fighting an illness, overcoming a catastrophe, etc., are, unfortunately, not tax deductible. (To be deductible, the law requires the gift to help a large and indefinite class of beneficiaries). See http://www.idealist.org/if/i/en/faq/108-274/345-248 for more about this question. A donation has to come from income to be deductible from income taxes. As a result, it is usually not possible to receive any sort of tax deduction if you volunteer your services, or allow an organization to use office space rent-free, or give away an item you made yourself (though you can deduct the out-of-pocket costs and expenses connected with any of these generous acts). See http://www.idealist.org/if/i/en/faq/425-215/62-42 for more about this question. — Ed.