a little background about the IRS rules of " tangible benefits or value
received"
When the good old boys at IRS first came out with the proposed regulations
that reduced one's charitable tax deduction because of value received, the
Church and synagogue sector were in an uproar. In order to save the
deduction, they would have to claim that the only benefits or value their
members werer receiveing for their dues were "intangible religious ones" and
therefore not subject to any reduction. This was a bitter pill to swallow,
but there really wasn't much of an alternative
After much negotiation, discussion and comprimise(and intervention by our
friends on Capitol Hill), the IRS finally agreed to allow for the full
deduction of membership dues (even if it included seats or as the IRS likes
to call them "pews", monthly bulletins etc) This also includes an aliyah.
HOWEVER luncheons, dinners, or theatrical performances etc., are not included
in the rubric of"intangible benefits".
One must deduct the "fair market value" of the benefits received.. i.e.
actual cost of the dinner or ticket price for the performance/ lecture ....
for example if the general admission price would be $10 but "sponsors"
donate $50 to be listed in the program booklet, they can take a $40 deduction
Please keep in mind that to claim a charitable deduction for $250 or more ,
you will need an acknowledgement letter from the shul . The following
disclaimer or something similar should be included ' No goods or services
were given to you in consideration of this donation/gift. "
The IRS is still writing the specific regulations concerning this requiremnet
I hope this clarifies (at least to some extent) this issue.
Avy Weberman
North Miami Beach, FL
AvyW@aol.com or jccavy@juno.com