Quid pro quo contribution
A payment that is partly a gift and partly payment for goods or services. Only the excess over what you received is deductible.
The IRS describes a quid pro quo contribution as "a payment made to a charity by a donor partly as a contribution and partly for goods or services provided to the donor by the charity."
Charities must give a written disclosure statement "to donors of a quid pro quo contribution in excess of $75", including a good faith estimate of the value of what the donor received, because only the amount above that value is deductible.
Gala tickets, benefit auctions, and charity raffles are the usual cases. A bag of clothing left at a donation center is not one of them.
Sources
- Substantiating charitable contributionsIRS, IRS guidance
- Publication 1771, Charitable Contributions: Substantiation and Disclosure RequirementsIRS, IRS publication
Definitions describe the rule as published. They are not tax advice, and almost every threshold above has an exception attached to it in the underlying publication. Confirm anything that affects a return with a qualified tax professional.
Related terms
Contemporaneous written acknowledgment (CWA)
The written statement from the charity required for any single contribution of $250 or more, obtained before you file.
Substantiation
The evidence you must hold to support a claimed charitable deduction, escalating in formality as the amount rises.
Photo evidence
Photographs of donated property, kept with the record. Not required by the IRS, but the cheapest way to show condition years later.
Values with the source attached
DeductiBee applies a cited fair-market-value range to everything you donate, keeps the photo with the record, and exports a Form 8283 worksheet when you file.
