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Quid Pro Quo Contribution CalculatorDeductible Amount and $75 Disclosure

What do these figures come to once the work is shown?

Deductible part of a payment that buys goods or services, whether the written disclosure is required, and the penalty for missing it.

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Your figures
Example figuresIllustrative only. Type over them with your own.
Deductible contribution
$160
Payment less the fair market value received
Penalty if the disclosure is not made
$1,200
$10 per contribution, up to $5,000 per event or mailing
Drawn to one scale
Deductible contribution$160
Penalty if the disclosure is not made$1,200
All results
MeasureResult
Deductible contribution$160
Written disclosure statement required
Yes: payment is more than $75 and goods or services were provided
Penalty if the disclosure is not made
$10 per contribution, up to $5,000 per event or mailing
$1,200
How this was worked out
Work shownrecomputed as you type
Deductible amount = payment - fair market value of goods or services provided
Disclosure required when the payment is more than $75
Penalty = $10 per contribution, not more than $5,000 per fundraising event or mailing

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Deductible amount = payment - fair market value of goods or services provided
  • Disclosure required when the payment is more than $75
  • Penalty = $10 per contribution, not more than $5,000 per fundraising event or mailing

How it works

A quid pro quo contribution is a payment made partly as a gift and partly for goods or services. The IRS example: a donor gives $100 and receives a concert ticket worth $40, so the contribution is $60. Because the payment is more than $75, the charity must give a written statement that the deductible amount is limited to the excess over the value received and a good faith estimate of that value.

No statement is needed when the benefit has insubstantial value under Revenue Procedures 90-12 and 92-49, when there is no donative element, for intangible religious benefits, and for certain annual membership benefits for payments of $75 or less. The penalty for a missing statement can be avoided by showing reasonable cause.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Is disclosure triggered by the payment or the deductible part?

By the payment. In the IRS example the deductible part is $60 but the $100 payment exceeds $75, so disclosure is required.

How do we value a benefit with no commercial equivalent?

Use any reasonable method in good faith, such as the value of comparable goods or services, even if they lack the unique quality of what was provided.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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