IRS announces higher limits on “low cost items”

The IRS has announced the higher limits for tax years beginning in 2024 for the value of “insubstantial benefits” that may be received by a donor in return for a contribution without causing the contribution to fail to be fully deductible. When originally enacted, the Tax Code provided two calculations for determining that contributions to a fund raising campaign would be fully deductible if the return benefits would be insubstantial as indexed annually for inflation. In the first calculation, a donor could receive token items like bookmarks, calendars, mugs, posters or tee shirts and take a full deduction if the cost (and not the fair market value) of such items was $5 or less and the...

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October 29, 2024

Marketers love to make their prospects feel special. But they sometimes don’t seem to want you to think about what they say to do it.

I received two items recently that made me wonder what they were thinking.

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IRS announces higher limits on “low cost items”

IRS announces higher limits on “low cost items”