Send your donors than-you notes. They’ll thank you come tax season.

By Kathleen Stephenson and Lisa Petkun

Thank your donors
Finally, if a taxpayer gives money to a charity in exchange for some consideration, a charitable deduction is allowable only if the donation exceeds the value of the consideration. For example, if a donor purchases a ticket to a fundraising event for $300, and the ticket entitles her to a dinner at fair-market value ($25), the value of her contribution is $275 ($300-$25), and substantiation rules will apply.