NONPROFITS: The deadline to update your Giving Day profile is August 1, 2014.
De Minimis Benefits: A donor can take a full deduction if the fair market value of the benefits received in connection with a gift does not exceed 2% of the donation or $101 (2013 inflation-adjusted amount), whichever is less.
1. The fair market value of the benefits received does not exceed the lesser of 2% of the payment(donation) or $101, or
2. The payment (donation) is at least $50.50, the only items provided bear the organization’s name or logo (e.g., calendars, mugs or posters), and the cost of these items is within the limit for “low-cost articles,” which is $10.10.
Do not offer to enter your donors into a drawing or raffle if they donate to your nonprofit on Giving Day. “Drawings’ are considered a “games of chance” by the IRS and regardless of whether they win or not, their ‘donation’ would then not be tax deductible.