Token Benefit Limits

 

A donor who receives a return benefit or quid pro quo for a charitable contribution generally may deduct only the excess of the amount of his/her contribution over the value of the benefit received. When the donor's contribution exceeds $75, the charity must provide a written estimate of the value of the return benefit [IRC Sec. 6115].

"Token benefits" provided in conjunction with a fundraising campaign, and whose value is sufficiently small, are disregarded in applying the quid pro quo rules and the "contemporaneous written acknowledgment" rules [IRC Sec. 170(f)(8)] generally applicable to charitable gifts of $250 or more [Rev. Proc. 90-12, 1990-1 C.B. 471]. The dollar limits for determining whether a return benefit to the donor is of "token value" are inflation-adjusted each year.

For contributions made in 2024, the following rules apply:

image\bullet.jpg The donor's contribution is at least $66 and the only return benefits are token items such as mugs, keychains, etc., which bear the organization's name or logo and which cost the organization not more than $13.20 each

image\bullet.jpg The value of all return benefits received does not exceed the lesser of 2% of the contribution, or $132

image\bullet.jpg The organization distributes to its donors free, unordered items the cost of which does not exceed $13.20 each

 

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