Contributions You Can Deduct Generally, you can deduct your contributions of money or propertythat you make to, or for the use of, a qualified organization. A giftor contribution is "for the use of" a qualified organization whenit is held in a legally enforceable trust for the qualifiedorganization or in a similar legal arrangement. The contributions must be made to a qualified organization and notset aside for use by a specific person. If you give property to a qualified organization, you generally candeduct the fair market value of the property at the time of thecontribution. See Contributions of Property, later. Your deduction for charitable contributions is generally limited to50% of your adjusted gross income, but in some cases 20% and 30%limits may apply. See Limits on Deductions, later. The total of your charitable contributions deduction and certainother itemized deductions may be limited. See the instructions forForm 1040 for more information. Table 1 in this publication lists some examples ofcontributions you can deduct and some that you cannot deduct. Contributions FromWhich You Benefit If you receive a benefit as a result of making a contribution to aqualified organization, you can deduct only the amount of yourcontribution that is more than the value of the benefit youreceive. Also see Contributions From Which You Benefit,under Contributions You Cannot Deduct, later. If you pay more than fair market value to a qualified organizationfor merchandise, goods, or services, the amount you pay that is morethan the value of the item can be a charitable contribution. For theexcess amount to qualify, you must pay it with the intent to make acharitable contribution. Example 1.You pay $65 for a ticket to a dinner-dance at a church. All theproceeds of the function go to the church. The ticket to thedinner-dance has a fair market value of $25. When you buy your ticketyou know that its value is less than your payment. To figure theamount of your charitable contribution, you subtract the value of thebenefit you receive ($25) from your total payment ($65). You candeduct $40 as a charitable contribution to the church. Example 2.At a fund-raising auction conducted by a charity, you pay $600 fora week's stay at a beach house. The amount you pay is no more than thefair rental value. You have not made a deductible charitablecontribution. Athletic events.If you make a payment to, or for the benefit of, a college oruniversity and, as a result, you receive the right to buy tickets toan athletic event in the athletic stadium of the college oruniversity, you can deduct 80% of the payment as a charitablecontribution. If any part of your payment is for tickets (rather than the rightto buy tickets), that part is not deductible. In that case, subtractthe price of the tickets from your payment. 80% of the remainingamount is a charitable contribution. Example 1.You pay $300 a year for membership in an athletic scholarshipprogram maintained by a university (a qualified organization). Theonly benefit of membership is that you have the right to buy oneseason ticket for a seat in a designated area of the stadium at theuniversity's home football games. You can deduct $240 (80% of $300) asa charitable contribution. Example 2.The facts are the same as in Example 1 except that your $300payment included the purchase of one season ticket for the statedticket price of $120. You must subtract the usual price of a ticket($120) from your $300 payment. The result is $180. Your deductiblecharitable contribution is $144 (80% of $180). Charity benefit events.If you pay a qualified organization more than fair market value forthe right to attend a charity ball, banquet, show, sporting event, orother benefit event, you can deduct only the amount that is more thanthe value of the privileges or other benefits you receive. If there is an established charge for the event, that charge is thevalue of your benefit. If there is no established charge, yourcontribution is that part of your payment that is more than thereasonable value of the right to attend the event. Whether you use thetickets or other privileges has no effect on the amount you candeduct. However, if you return the ticket to the qualifiedorganization for resale, you can deduct the entire amount you paid forthe ticket. Even if the ticket or other evidence of payment indicates that thepayment is a "contribution," this does not mean you can deductthe entire amount. If the ticket shows the price of admission and theamount of the contribution, you can deduct the contribution amount. Example.You pay $40 to see a special showing of a movie for the benefit ofa qualified organization. Printed on the ticket is"Contribution--$40." If the regular price for the movie is$8, your contribution is $32 ($40 payment - $8 regular price). Membership fees or dues.You may be able to deduct membership fees or dues you pay to aqualified organization. However, you can deduct only the amount thatis more than the value of the benefits you receive. You cannot deductdues, fees, or assessments paid to country clubs and other socialorganizations. They are not qualified organizations. Certain membership benefits can be disregarded.Both you and the organization can disregard certain membershipbenefits you get in return for an annual payment of $75 or lessto the qualified organization. You can pay more than $75 to theorganization if the organization does not require a larger payment foryou to get the benefits. The benefits covered under this rule are: Any rights or privileges, other than those discussed underAthletic events, earlier, that you can use frequently whileyou are a member, such as: Free or discounted admission to the organization'sfacilities or events, Free or discounted parking, Preferred access to goods or services, and Discounts on the purchase of goods and services, and Admission, while you are a member, to events that are openonly to members of the organization if the organization reasonablyprojects that the cost per person (excluding any allocated overhead)is not more than a specified amount, which may be adjusted annuallyfor inflation. (This is the amount for low-cost articles given in theannual revenue procedure with inflation adjusted amounts for thecurrent year. You can get this figure from the IRS.) Token items.You can deduct your entire payment to a qualified organization as acharitable contribution if both of the following are true. You get a small item or other benefit of token value. The qualified organization correctly determines that thevalue of the item or benefit you received is not substantial andinforms you that you can deduct your payment in full. The organization determines whether the value of an item orbenefit is substantial by using Revenue Procedure 90-12 and92-49 and the revenue procedure with the inflation adjustedamounts for the current year. Written statement.A qualified organization must give you a written statement if youmake a payment to it that is more than $75 and is partly acontribution and partly for goods or services. The statement must tellyou that you can deduct only the amount of your payment that is morethan the value of the goods or services you received. It must alsogive you a good faith estimate of the value of those goods orservices. The organization can give you the statement either when it solicitsor when it receives the payment from you. Exception.alberghi a ValenciaAn organization will not have to give you this statement if one ofthe following is true. The organization is: The type of organization described in (5) under Typesof Qualified Organizations, earlier, or Formed only for religious purposes, and the only benefit youreceive is an intangible religious benefit (such as admission to areligious ceremony) that generally is not sold in commercialtransactions outside the donative context. You receive only items whose value is not substantial asdescribed under Token items, earlier. You receive only membership benefits that can bedisregarded, as described earlier. chambre d'hotel a KilkennyExpenses Paid forStudent Living With You You may be able to deductsome expenses of having a student live with you. You can deductqualifying expenses for a foreign or American student who: Lives in your home under a written agreement between you anda qualified organization (defined later) as part of aprogram of the organization to provide educational opportunities forthe student, Is not your dependent or relative, and Is a full-time student in the twelfth or any lower grade ata school in the United States. You can deduct up to $50 a month for each full calendar month thestudent lives with you. Any month when conditions (1) through (3)above are met for 15 or more days counts as a full month. Qualified organization.For these purposes, a qualified organization can be any of theorganizations described earlier under Organizations That QualifyTo Receive Deductible Contributions, except those in (4) and(5). For example, if you are providing a home for a student through astate or local government agency, you cannot deduct your expenses ascharitable contributions. Qualifying expenses.Expenses that you may be able to deduct include the cost of books,tuition, food, clothing, transportation, medical and dental care,entertainment, and other amounts you actually spend for the well-beingof the student. Expenses that do not qualify.Depreciation on your home, the fair market value of lodging, andsimilar items are not considered amounts spent by you. In addition,general household expenses, such as taxes, insurance, repairs, etc.,do not qualify for the deduction. Reimbursed expenses.If you are compensated or reimbursed for any part of the costs ofhaving a student living with you, you cannot deduct any ofyour costs. However, if you are reimbursed for only an extraordinaryor a one-time item, such as a hospital bill or vacation trip, that youpaid in advance at the request of the student's parents or thesponsoring organization, you can deduct your expenses for the studentfor which you were not reimbursed. Mutual exchange program.You cannot deduct the costs of a foreign student living in yourhome under a mutual exchange program through which your child willlive with a family in a foreign country. Reporting expenses.For a list of what you must file with your return if you deductexpenses for a student living with you, see Reporting expensesfor student living with you under How To Report,later. Out-of-Pocket Expensesin Giving Services You may be able to deduct some amounts you pay in giving servicesto a qualified organization. The amounts must be: Unreimbursed, Directly connected with the services, Expenses you had only because of the services you gave,and Not personal, living, or family expenses. Table 2 contains questions and answers that apply tosome individuals who volunteer their services. Table 2 - Volunteers' Q & A Underprivileged youths selected by charity.You can deduct reasonable unreimbursed out-of-pocket expenses youpay to allow underprivileged youths to attend athletic events, movies,or dinners. The youths must be selected by a charitable organizationwhose goal is to reduce juvenile delinquency. Your own similarexpenses in accompanying the youths are not deductible. Conventions.If you are a chosen representative attending a convention of aqualified organization, you can deduct unreimbursed expenses fortravel and transportation, including a reasonable amount for meals andlodging, while away from home overnight in connection with theconvention. However, see Travel, later. You cannot deduct personal expenses for sight-seeing, fishingparties, theater tickets, or nightclubs. You also cannot deducttravel, meals and lodging, and other expenses for your spouse orchildren. You cannot deduct your expenses in attending a church convention ifyou go only as a member of your church rather than as a chosenrepresentative. You can deduct unreimbursed expenses that are directlyconnected with giving services for your church during the convention. Uniforms.You can deduct the cost and upkeep of uniforms that are notsuitable for everyday use and that you must wear while performingdonated services for a charitable organization. Foster parents.You can deduct as a charitable contribution some of the costs ofbeing a foster parent (foster care provider) if you have no profitmotive in providing the foster care and are not, in fact, making aprofit. A qualified organization must designate the individuals youtake into your home for foster care. You can deduct expenses that are: Greater than any nontaxable payments you receive from theorganization, and Spent to provide support for those individuals. Church deacon.You can deduct as a charitable contribution any unreimbursedexpenses you have while in a permanent diaconate program establishedby your church. These expenses include the cost of vestments, books,and transportation required in order to serve in the program as eithera deacon candidate or as an ordained deacon. Car expenses.You can deduct unreimbursed out-of-pocket expenses, such as thecost of gas and oil, that are directly related to the use of your carin giving services to a charitable organization. You cannotdeduct general repair and maintenance expenses, depreciation,registration fees, or the costs of tires or insurance. If you do not want to deduct your actual expenses, you can use astandard mileage rate to figure your contribution. See theinstructions for Schedule A (Form 1040) to find the rate for the yearyou claim the deduction. You can deduct parking fees and tolls, whether you use your actualexpenses or the standard mileage rate. You must keep reliable written records of your car expenses. Formore information, see Car Expenses under Records ToKeep, later. Travel.Generally, you can claim a charitable contribution deduction fortravel expenses necessarily incurred while you are away from homeperforming services for a charitable organization only if there isno significant element of personal pleasure, recreation, orvacation in the travel. This applies whether you pay the expensesdirectly or indirectly. You are paying the expenses indirectly if youmake a payment to the charitable organization and the organizationpays for your travel expenses. Berlin hotel roomsThe deduction for travel expenses will not be denied simply becauseyou enjoy providing services to the charitable organization. Even ifyou enjoy the trip, you can take a charitable contribution deductionfor your travel expenses if you are on duty in a genuine andsubstantial sense throughout the trip. However, if you have onlynominal duties, or if for significant parts of the trip you do nothave any duties, you cannot deduct your travel expenses. Example 1.You are a troop leader for a tax-exempt youth group and take thegroup on a camping trip. You are responsible for overseeing the set upof the camp and for providing the adult supervision for otheractivities during the entire trip. You participate in the activitiesof the group and really enjoy your time with them. You oversee thebreaking of camp and you transport the group home. You can deduct yourtravel expenses. Example 2.You sail from one island to another and spend 8 hours a daycounting whales and other forms of marine life. The project issponsored by a charitable organization. In most circumstances, youcannot deduct your expenses. Example 3.You work for several hours each morning on an archeologicalexcavation sponsored by a charitable organization. The rest of the dayis free for recreation and sight-seeing. You cannot take a charitablecontribution deduction even though you work very hard during those fewhours. Example 4.You spend the entire day attending a charitable organization'sregional meeting as a chosen representative. In the evening you go tothe theater. You can claim your travel expenses as charitablecontributions, but you cannot claim the cost of your evening at thetheater. Daily allowance (per diem).If you provide services for a charitable organization and receive adaily allowance to cover reasonable travel expenses, including mealsand lodging while away from home overnight, you must include in incomethe amount of the allowance that is more than your deductible travelexpenses. You can deduct your necessary travel expenses that are morethan the allowance. Deductible travel expenses.These include: Air, rail, and bus transportation, Out-of-pocket expenses for your car, Taxi fares or other costs of transportation between theairport or station and your hotel, Lodging costs, and The cost of meals. Because these travel expenses are not business-related, theyare not subject to the same limits business related expenses are. Forinformation on business travel expenses, see Travel Expensesin Publication 463, Travel, Entertainment, Gift, and CarExpenses.