|
Posted by Stuart Bronstein on January 29, 2008, 2:12 am
Please log in for more thread options
> If private school tuition is $20,000 and the school allocates
> $2,000 of it to fund its financial aid programs, can the $2,000 be
> claimed as a charitable contribution?
Normally anything given, even to a charitable organization, in exchange
for something is a payment, not a gift. If the payment is clearly for
more than the value of what is received, the excess may be deductible.
But if payment is required, you'll be unlikely to prove the actual
value is lower than what you paid.
> If not, why is a subsequent $2,000 gift which is earmarked for
> financial aid deductible?
Because it's voluntary, and nothing is (supposedly) given in return.
The fact that it is earmarked is not a problem as long as the defined
use for the gift is within the stated exempt purpose of the
organization, and the organization agrees.
Stu
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap