What if a donor gives a donation in exchange for something in return?

When a donor receives goods or services in return for their contribution, you must inform them of a reasonable estimate of the value of those goods or services. Only the portion of their contribution in excess of the value of the goods or services is tax deductible.

For example, if a donor purchases a $100 ticket for your fundraising gala, which features a dinner valued at $30, only $70 of their ticket is tax deductible. Please speak with the financial services team early in the process of planning a special event for help in determining the tax-deductible portion of any tickets or sale items. State law requires that all solicitations, invitations, and other correspondence relating to dinners and special events clearly list these deductible and non-deductible portions separately.