Charitable Donations From Afar: Are They Tax Deductible?

How should a Section 501(c)(3) organization handle donations received from donors outside the United States? With a thank-you note, of course! And then what? A U.S. public charity should issue a charitable contribution receipt, but refrain from stating that such a donation is tax deductible to the donor. Here’s why, and how the gift’s tax deductibility may vary depending on the donor’s own tax status and situation.

Overview and General Rule

Freedom Path Ruling: A Step Backward for Nonprofits’ First Amendment Freedom

A Texas federal trial court recently rejected Freedom Path’s challenge to the IRS’s multi-factor “facts and circumstances” test for a nonprofit’s politically-tinged advocacy speech as not unconstitutionally too vague or otherwise legally problematic.  The court’s adverse decision deals a setback for free speech interests affected by the IRS’s constitutionally dubious test, as contained in its Revenue Ruling 2004-6.

The Road Thus Far

Social Club Q & A: Section 501(c)(7) Tax-Exempt Organizations

Social clubs have long served as a defining characteristic of American society. While the nature of the hobbies, recreational interests, and other ties that inspire people to bond together continues to change significantly, the social club itself remains.  For people wishing to join with others and carry out shared interests in an organized way, the group should understand the tax benefits afforded social clubs.  Specifically, Section 501(c)(7) of the Internal Revenue Code provides an exemption from federal income tax if certain requirements are met.

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