Could The IRS Disallow Ice Bucket Challenge Charitable Contributions?
OK, rest easy; the IRS isn’t coming after your ALS donation. While theprinciple of donative intent is very real, in recent years, the courtshave tied this principle to a “quid pro quo test,” which states that inorder for a donation to lack donative intent, the donor must anticipatereceiving a financial benefit from the contribution commensurate
with the value the donor transferred to the charity. Because an icebucket dodger has received no financial benefit, but rather merely aphysical one, the contribution is (should be) immune to attack. Plus, Ithink I’ve read somewhere that the IRS is dealing with a bit of a public perception problem these days, so attacking contributions to a horribledisease is probably not in its best interest.
Post a Comment