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Council of Jewish Federations ? United Jewish Appeal August 19, 1994 To: Presidents Executive Directors Campaign Directors Endowment Directors Chief Financial Officers Controllers Maynard I. Wishner, President, CJF Joel D. Tauber, President, UJA Martin S. Kraar, Executive Vice President, CJF Rabbi Brian L. Lurie, Executive Vice President, UJA Charitable Contribution Substantiation and Quid Pro Quo Disclosure Requirements - Interim Guidelines From: Re: To obtain a charitable deduction for gifts made in 1994, donors must comply with new substantiation requirements-as well as numerous existing rules. The rules are strict and there may be no second chance to comply. Further, fines will be imposed on charities that don't meet the quid pro quo disclosure requirements as described in the enclosed Interim Guidelines. The Interim Guidelines were developed by a joint CJF/UJA task force which includes key professionals, lay leaders and outside counsel of CJF & UJA and three Federations: Chicago, Cleveland and New York. The Interim Guidelines are based on the new requirements found in the 1993 tax law, the committee report on that law, IRS Publication 1771 and IRS Temporary T. D. 8644. Many questions remain unanswered. IRS is now working on regulations and clarifying instructions which we hope will be issued soon. CJF sent the attached memo (Appendix C) to the IRS in order to clarify these difficult areas. On June 22, Sheldon Cohen, the chairman ofCJF's Endowment Steering Committee; Gilbert Jacobson of CJF and Philip Temple, counsel to CJF's Planned Giving and Foundation Relations department met with a group of IRS and Treasury Department personnel to discuss these issues. The discussions were cordial and, quite fruitful. The IRS and Treasury officials will seek to answer many of the issues that were raised in that meeting. The enclosed Discussion Draft of the Interim Guidelines is being sent to all Federations for preliminary guidance pending publication of regulations and other guidance. We repeat: The guidance is only preliminary. We want your written comments. The CJF/UJA Task Force will review your comments and issue a revised version of the Interim Guidelines. 730 Broadway New York, NY 10003 212-475-5000 99 Park Avenue, Suite 300 New York, NY 10016 212-818-9100 - 2 - We appreciate Federations' difficulties and concerns (not least, the expenses of compliance) regarding the new rules. Remember, we are only the messenger. Congress, Treasury and IRS have made their basic views clear and they are seeking strict compliance. Please direct any comments or questions to Donald Kent, CJF or Gerald Carter, UJA no later than September 16, in order that adequate guidance may be included in the IRS Regulations. We urge that you consult with your own advisors for counsel. And, as always, donors should be reminded to consult their advisors. MIW:JDT:MSK:BLL:as Enc. 7\cjfcover.ltr CJF/UJA INTERIM GUIDELINES "Charitable Contribution Substantiation and Quid Pro Quo Disclosure" On November 5, 1992-before the '93 Act was passed-we informed you that we believed that most missions are not deductible. We also provided sample language for inclusion in mission literature, notifying mission participants that payments made for a mission subsidy are not deductible to the extent of the discount on the fair market value of the mission. This recommended language reaffirmed the voluntary nature of gifts made in connection with missions. CJF sent out memos December 21, 1993 and January 6, 1994, which provided a description of the new law and sample language for communicating with donors about it. Underlying Principles Federations should make a good faith attempt to comply with the new law and its spirit. In addition, we believe it is important that donors receive the earliest advice by the Federation of any limitations on deductibility of gifts?to avoid later surprise, embarrassment, loss of deductions (and possible penalties). Thus, the essential information should be given to the donor both at the solicitation and before the time donors file their income tax returns. This requires communication between CJF, UJA and the Federations-and between the Federations and donors. Basic Rules As outlined in the accompanying chart (Appendix A), benefits (goods or services) provided in return for contributions reduce the allowable charitable deduction. For gifts exceeding $75, where there is a quid pro quo, the solicitation materials must mention, or the donor must be furnished with a receipt (i) advising that the charitable deduction is limited to the contribution in excess of the value of the benefits received and (ii) furnishing a good faith estimate of those benefits. Several exceptions are discussed in this memo. For gifts of $250 or more, a donor now must have a written receipt from the donee Federation. The new rules are outlined in Appendix A. Benefits provided prior to January 1, 1994 are not covered by the new laws. Year-end Substantiation Statement We recommend that Federations should give donors year-end statements (see Appendix B) that tally all payments and benefits received. The statements should set forth the amount of cash contributed and a description (but not value) of any property other than cash contributed. If the Federation and/or UJA provided any goods or services in consideration of the gift, the receipt should so state, together with a description and good faith estimate of the value of such goods or services. If no goods or services were given to the donor, the receipt must so state. There is some question as to whether a year-end substantiation statement should include all payments or only those exceeding the $75 and $250 threshold amounts where a receipt is required. A further question is whether a year-end statement should include a payment for which there was a fully offsetting quid pro quo and, therefore, no deduction at all. Thus, there may be a few ways to handle this matter until IRS furnishes clear rules. You may also determine not to issue a year-end substantiation statement as long as you have provided appropriate receipts contemporaneously with gifts made during the year. Quid Pro Quo Contributions If a charity receives a quid pro quo gift over $75, it must, as part of the solicitation or contemporaneous receipt of the gift, provide a written statement containing a good faith estimate of the value of the goods or services. ? The statement must also inform the donor that the charitable deduction is limited to the amount of the payment in excess of the value of the goods and services provided. ? Note that a difference of more than $75 between the amount given by the donor and the value of the object received by the donor doesn't trigger disclosure. The amount actually paid by the donor is what matters. ? Separate payments made at different times of the year for separate fund-raising events generally will not be aggregated. The IRS will probably issue anti-abuse rules to prevent avoidance of the quid pro quo disclosure requirement by writing multiple checks for the same transaction. ? Fine print disclosure on tickets or promotional material will not suffice, because disclosure must be made in a manner that is reasonably likely to come to the donor's attention. Missions Missions are an extremely important component of UJA's and Federations' fund-raising and educational efforts. While the payments for some missions may be deductible in limited cases, Federations are urged to comply with the following guidelines until further clarification is provided by the IRS. Literature Mission literature should contain language similar to the following: Under the Internal Revenue Code, your gift is deductible only to the extent that it, plus your payments for this mission, exceed the benefit received. The benefit received, which is the fair market value of the mission, is $ . In addition, any payments for extra air and/or land costs are not tax deductible. Fair Market Value The fair market value of a mission is its cost in the open marketplace. The Federation is obligated to provide a "good faith estimate" of that value. Generally, it should be permissible to estimate that the fair market value of a mission is equal to UJA's and/or Federation's actual cost. However, if this amount is significantly less than what a comparable trip would cost through a travel agency or other group, the Federation's estimate could be challenged. For purposes of these examples, it is assumed that the donors are receiving no other benefits in return for their payments (e.g., dinners, pins). Example A? Ms. A participated in a 1994 mission. The per person cost of the mission to UJA Federation is $3,000. Ms. A sent a mission payment of $3,000 in 1994. She was solicited on the mission, and pledged $1,000. She paid the $1,000 to Federation in the year of the pledge. Total payments by Ms. A $4,000 Mission Payment $3,000 Pledge Payment $1,000 Fair Market Value of Benefit or Services Received by Ms. A 3.000 Ms. A's allowable federal income tax charitable deduction $1,000 National UJA will be providing Federations with the fair market value of missions, as well as information on payments made directly to UJA. Subsidies A subsidy given to a mission participant by a Federation or by UJA will (with rare exceptions) be considered a benefit given to the donor, and is subtracted from payments made by the donor in determining the amount of the charitable gift. Example B? Mr. B participated in a $5,000 suggested gift 1994 mission. The cost to Federation of the mission was $2,800. A $500 per person subsidy from Federation and a $500 per person subsidy from UJA was allocated to the mission cost. Mr. B sent a check for $1,800 as his required mission payment to Federation in 1994. Mr. B was solicited on the mission, and pledged $5,000. He sent a check for $5,000 to Federation in 1994 in payment of the pledge. Total payments by Mr. B $6,800 Mission Payment $1,800 Pledge Payment $5,000 Fair Market Value of Benefit or Services Received by Mr. B 2.800 Mr. B's allowable federal income tax charitable deduction $4,000 Payments and Benefits Over Multiple Years As described above, a donor's allowable charitable deduction for payments made relating to a mission is the amount of the donor's payments minus the value of benefits or services received by the donor (i.e., the cost of the mission). Although not addressed by the legislation, here is our best guess: Gifts should be tracked on a twelve month basis against the benefit received. The tracking will probably not be restricted to the calendar year in which the benefit is received by the donor. The IRS will probably direct charities to provide receipts to the donor reflecting the reduction of the gift as shown in the following examples: Example C? Mr. C went on a mission in November 1993, and paid the $3,000 fair market value of the mission in 1993. On the mission, he pledged $5,000 to the 1994 Annual Campaign, which he paid to Federation in October, 1993. Total payments by Mr. C $8,000 Mission Payment $3,000 Pledge Payment $5,000 Fair Market Value of Benefit or Services Received by Mr. C 3.000 Mr. C's allowable federal income tax charitable deduction for 1993 $5,000 Example D? Ms. D went on a mission in November 1993, and paid the $3,000 fair market value of the mission in 1993. On the mission, she pledged $5,000 to the 1994 Annual Campaign, which she paid to Federation in March 1994. Ms. D's mission payment of $3,000 in 1993 is not a deductible charitable gift. Her 1994 $5,000 payment is a charitable gift, qualifying for a $5,000 charitable deduction. Deduction for Unreimbursed Expenses Volunteers who provide services to a charity may sometimes deduct unreimbursed expenditures incurred in connection with those services. Example E? A solicitor pays for phone calls and transportation during a solicitation of a prospect. Those expenses may either be reimbursed by the charity or deducted by the solicitor as unreimbursed expenses. Payments for the prospect's meals are deductible as an unreimbursed expense. The solicitor's meals would only be deductible if she or he were away overnight on a fund-raising trip. Example F? The Federation President pays for registration, transportation, meals, etc., as an appointed delegate to the CjF General Assembly. Since this meeting would probably meet the test for being substantially related to conducting the business of the charity and would meet the test of not being a pleasure activity, the President's unreimbursed expenditures would probably be deductible. Example G? The Mission Chairperson or other senior officer of a Federation attending the mission to conduct solicitations pays $1,500 for a mission, the fair market value of which is $2,500, and makes a $5,000 "contribution." Her allowable charitable deduction is $5,000. The $1,000 subsidy should not be considered a benefit. She has unreimbursed expenditures on the mission of $1,500 which might be deductible. [We recognize that this is an aggressive position. The IRS has denied unreimbursed volunteer deductions in the past in cases with fact patterns similar to this example.] We have asked IRS to issue guidance on the receipts required of a charity for a donor who has unreimbursed expenses of over $250. We believe that IRS will require the charity to at least confirm that the donor performed the services for the charity. Then, it will be up to the donor to substantiate the expenses by appropriate receipts or other documentation. Dinners Generally, payments for the cost of attending dinners are not charitable gifts, and represent a nondeductible payment for the value of the meal. Again, quid pro quo notice is required. However, goods and services for which donors pay the fair market value above and beyond any charitable contribution are not considered benefits for quid pro quo purposes. Example H? Donor pays $550 to attend a dinner. The fair market value of the dinner is $50. Donor's deductible gift is $500. The fund-raising solicitation and the receipt should both state that the value of the dinner is $50 and donor's allowable deduction is $500. Suppose the solicitation states that there is a cover charge for the dinner and a suggested contribution? The following example shows how that should be treated: Example I? Federation sponsors a dinner with a per person fair market value of $50 for which there is a $50 cover charge and a $500 suggested gift. Federation should provide donors with a receipt indicating the amount of the cash contributed along with an estimate of the value of the dinner. The receipt should indicate that the deductible portion of the contribution is limited to the excess of the contribution over the value of the goods or services provided by Federation. Donor Recognition Events Donor recognition for past contributions should, in appropriate circumstances, not be considered a quid pro quo; for example, where the event is not done on a regular basis (so there is no expectation on the donor's part) and there is no direct fund-raising at the event. De minimis Rules and Other Exceptions Some benefits (and dinners in limited cases) may not be governed by the quid pro quo rules because they meet the safe harbor exceptions of IRS Rev. Procs. 90-12 and 93-49. Specifically, if the value of the benefit received by the donor does not exceed the lesser of 2% of the value of the property transferred to the charity or $64 in 1994 (an inflation-adjusted amount), the quid pro quo rules are inapplicable. Items are also exempt from the quid pro quo rules if the donor gives the charity at least $32 and receives a "token item." The token must bear the charity's name or logo and cost the charity no more than $6.40 in 1994. However, suppose a donor gives Federation $33 in 1994 and receives a mug, and donates another $33 later in the year to Federation and gets a T-shirt. If the mug and the T-shirt together cost Federation more than $6.40 in 1994, neither is a token item and the quid pro quo rules apply. All benefits to a donor must be aggregated for the year. We do recognize that the necessary record keeping will make it difficult for Federations receiving multiple gifts that give multiple small benefits in return. Payment by Donor-Advised Philanthropic Funds and Private Foundations This topic will be dealt with in a separate alert which will be sent within the next few weeks. Refusal by Donor to Receive Benefits It is possible that for many of the situations described above Federation may offer the donor an opportunity to decline the benefit that is provided in return for the contribution. If the donor declines the benefit in writing and, in fact, does not receive it, the donor may deduct the full fair market value of the charitable contribution. While some believe it is not absolutely clear that the benefits must be declined in writing, if Rev. Rul. 67-246 still applies (and IRS often has said that is the rule), A WRITING IS NECESSARY. The IRS should provide clarification on this issue. Federation or Community Newspaper The Federation or community newspaper will generally be considered a benefit for purposes of the quid pro quo rules and reporting requirements unless it falls into the above-mentioned exceptions or it meets the test for "noncommercial" educational material. Tests that must be applied relate primarily to the level of paid advertising. The existence of a substantial number of paid subscribers and newsstand sales, whether articles are written for compensation and a published subscription rate are other indications of "commercial-type" publications. Example J? Federation gives a free subscription to the community newspaper only to contributors. Unless the $15 fair market value of the subscription falls within the de minimis rules, the $15 is not allowable as a charitable deduction. Example K? Federation gives a free subscription to the community newspaper to all individuals on the Federation list, regardless of whether a contribution is received. Nevertheless, the charitable contribution deduction must be reduced by the value of the newspaper subscription. Rev. Proc. 92-49. 1992-26, I.R.B. 18, implicitly holds that unsolicited benefits that do not meet the safe harbor amounts reduce the amount of the charitable contribution deduction. Additional Information CJF, UJA and Federations are not rendering tax or legal advice. These guidelines are intended to assist CJF, UJA, Federations and donors in complying with the requirements of the new law by providing donors with information for their ultimate review with their professional advisors. A final word No doubt each of you has specific cases (involving benefits to donors) that you can tell us about. Let us know and we will deal with them in the final guidelines. Please keep this in mind in your response to this interim guidelines memorandum. Additional Guidance CJF and UJA will update Federations on further developments. Inquiries or comments should be addressed to one of the following: CJF - 730 Broadway, New York, NY 10003: Harold Adler 212 598-3540 Donald Kent 212 590-3535 Gilbert Jacobson 212 598-3534 UJA, 99 Park Avenue, New York, NY 10016 Gerald Carter 212 880-1203 Jonathan Lichter 212 880-1246 7\guidlins.qpq -8- APPENDIX A INTERIM GUIDELINES FOR CHARITIES AND DONORS ON CHARITABLE CONTRIBUTIONS* Substantiation**, Reporting and Deductibility (as of January 1, 1994) Contrib. Description $75 or Less, with Quid Pro Quo. Less than $250, Quid Pro Quo. no Over $75 and less than $250, with Quid Pro Quo Cash of $250 or more, with no Quid Pro Quo. AND Non-cash of $250- $500, with no Quid Pro Quo. Cash of $250 or more, with Quid Pro Quo. Non-cash of over $500 with or without Quid Pro Quo. Charity No receipt or notice required by new legislation, but charities should still provide donors with the value of benefits received in solicitation materials or on a receipt (Rev. Rul. 67-246). No receipt required by new law but should nevertheless be provided. Inform donor in writing, in connection with solicitation OR receipt: A. that the charitable deduction is limited to the amount of the contribution in excess of the fair market value of the benefits received; B. what benefits were provided and their value, based on a good faith estimate. Technically no burden on charity to give receipt. But since taxpayers will need receipts from charities, charities should provide receipts that state what was contributed and that there were no benefits provided in return. Inform donor in writing, in connection with solicitation OR receipt: A. that the charitable deduction is limited to the amount of the contribution in excess of the fair market value of the benefits received; B. what benefits were provided and their value, based on a good faith estimate Because of the requirement of taxpayers to receive receipts from charities, charities should provide receipts AND alert donors to the Quid Pro Quo implications of the gift during the solicitation process. Substantiation requirements for non-cash gifts (IRS Forms 8283 and 8282) have remained the same. However, because donors must have a written receipt, charities should provide receipts which: A. describe the property received (no new obligation to estimate property value); B. state that the charitable deduction is limited to the value of the property contributed in excess of the fair market value of the benefits received; and C. state what benefits were provided and their value, based on a good faith estimate, or that there were none. Donor Deduction limited to amount of contribution in excess of fair market value of benefit received; cancelled check or other receipt sufficient substantiation for amount donated; unclear how donor is to estimate fair market value of benefit received if not provided by charity. Cancelled check or other receipt sufficient substantiation. Cancelled check or other receipt sufficient substantiation for amount contributed. Deduction limited to amount of contribution in excess of fair market value of benefit received based on good faith estimate which must be provided by charity. Must receive and maintain written receipts from charities prior to filing income tax returns. Cancelled checks NOT sufficient. Must receive and maintain written receipts from charities prior to filing income tax returns. Cancelled checks NOT sufficient. Deduction limited to amount of contribution in excess of fair market value of benefit received based on good faith estimate provided by charity in the receipt. In addition to the substantiation requirements for non-cash gifts (IRS Form 8283) which have not changed, donors must receive and maintain written receipts from charities prior to filing income tax returns. Cancelled checks NOT sufficient. Deduction limited to the fair market value of the property contributed, as determined according to the valuation rules which have not changed, in excess of fair market value of benefit received based on good farth estimate provided by charity in the receipt. Charities should also alert donors to the Quid Pro Quo implications of the gift, if any, during the solicitation process. Prepared as an educational tool for use by member Federations and other charitable organizations and their donors pending release of the new IRS Regulations. It may be reproduced with attribution. Permission not required. In some cases, a receipt is not required to claim the charitable deduction on the donor's income tax return; but if the return is audited, donor may be required to furnish "proof" of his or her gift. In all cases where substantiation is required, donor must have the receipt in his or her possession before filing the income tax return. Planned Giving & Foundation Relations Dept. ? Council of Jewish Federations ? 730 Broadway ? New York, NY 10003 Updated: July 29. 1994 APPENDIX B ACKNOWLEDGEMENT OF CHARITABLE CONTRIBUTION The Jewish Federation of (City) gratefully acknowledges receipt during 1994 of the following payment(s) from (Name of Donor): Cash $ Total (Describe securities or other property)_ [ ] The Jewish Federation of (City) provided no goods or services in return for this contribution. [ ] The Jewish Federation of (City) f provided, in connection with this payment, goods and services of the following estimated value and description: The amount of your payment that is deductible for federal income tax purposes is limited to the excess of that payment over the value of goods or services provided by Jewish Federation of (city). Jewish Federation of (City) By IMPORTANT: Federal tax law requires that you keep this receipt to substantiate your charitable deduction. Your canceled check will not suffice. The law requires that in all cases where you are required to have a receipt from the charity, that you have it in hand before filing your tax return. Please call if you have any questions. [insert telephone number and names, if appropriate] 7\guidlins.qpq APPENDIX C REQUEST FOR CLARIFICATION ON SUBSTANTIATION OF CHARITABLE GIFTS AND QUID PRO QUO CONTRIBUTIONS Introduction The guidance furnished by Internal Revenue Service in Rev. Proc. 90-12 and IRS Publication 1771 is greatly appreciated. Still, many important questions on the new substantiation and quid pro quo disclosure rules for charitable contributions remain unanswered. The new rules are effective as of January 1, 1994. Yet, charities and their donors have had to act without substantial guidance in many areas where the rules are not clear. Therefore, we ask that the detailed rules of the forthcoming regulations be effective as of. January 1, 1995, and that, for the current tax year 1994, the standard for charities and donors be a good faith attempt to comply with the 1993 act. Areas of Concern 1. What is the necessary connection between a benefit and a contribution in order for the benefit to be a quid pro quo? (A) Background. Internal Revenue News Release 93-121 states that, "[a] quid pro quo contribution is one in which part of the payment is for goods or ser-vices received and part is a contribution." Further clarification is sought from the Service as to the relationship between the benefit conferred by a charity on its donor and the donor's contribu-tion. If the goods or services provided by the charity are not in consideration of a donor's gift and, conversely, if the donor makes that gift without regard to the goods and services conferred on him or her by charity, the donor's contribution need not be reduced by any benefit received from the charity. In no event, however, should a donor be required to reduce his or her contribution by the value of goods and services received by the donor either thirty (30) days or more prior to or thirty (30) days or more following the time of the donor's payment or making of a pledge unless: (1) the donor's payment or pledge was induced by a benefit received by the donor from charity; (2) the donor's payment or pledge was induced by an express promise of a specified benefit by the charity; or (3) the charity has historically and regularly conferred a benefit on individuals who make annual gifts or pledges of at least the same amount as the donor and the donor was aware of the likely benefit before making his or her contribution. (Because a pledge is not deductible until paid, any necessary reduction of the charitable deduction should occur in the year in which the pledge is paid.) (B) Examples: (1) Each year Donor A makes a gift of $1,000 to charity. Charity, to launch a new capital campaign, invites a group of prospective do-nors, including Donor A, to a special lun-cheon. The luncheon is offered to the prospective donors without any cost to them and there is no "suggested contribution.H Donor A attends the luncheon. Donor A need not reduce his $1,000 contribution by the value of the luncheon because the gift was not made by him in consideration for the luncheon and the luncheon was not provided by the char-ity to the Donor in consideration for his regular gift but, as a way of informing Donor A about its programs and needs. (2) Donor B attends a fund-raising dinner spon-sored by charity. Charity imposed no charge on Donor to attend the fund-raising dinner nor solicited a "suggested contribution." Donor B makes a $350 gift to charity (or pledges $350 which pledge is later satisfied) during the dinner. Donor B must reduce his deduction by the fair market value of the dinner provided by charity. (3) Assume same facts as item (2), but instead, Donor B makes a gift to charity seven months after the date of the fund-raising dinner. Donor B may claim a deduction for $350. (4) Charity sponsors a dinner to which it invites all persons who have made previous gifts ex-ceeding a certain amount in recognition of those individuals' contributions to charity. Individuals attending the recognition dinner need not reduce their earlier contributions by the value of the dinner. (C) Charity also seeks guidance on the treatment of quid pro quo benefits for contributions that cross tax years. We submit there should be no carryover of benefits except where the benefit received in a -2- subsequent or prior year is tied to a specific gift. For example, Donor C makes pledge at a fund-raising dinner in December but fulfills his pledge the following February. Intangible Religious Benefits. * (A) Background. Donors who receive goods or services consisting entirely of "intangible religious bene-fits" need not reduce their contribution by the value of those benefits. Clarification of what constitutes an "intangible religious benefit" is requested. (B) Examples; (1) Donors A and B make a $2,000 contribution to their place of worship. The place of worship provides wholly religious training to C, the child of A and B. The training received by C is non-secular and it is only available from places of worship. C will receive no recog-nized degree at the completion of the relig-ious training. C's wholly religious education constitutes an "intangible religious benefit" and Donors A and B need not reduce their con-tribution to their place of worship. (2) Donors A and B make an additional $300 payment specifically for the purpose of obtaining religious training for C. Donors A and B can deduct their additional $300 contribution and still need not reduce their contribution to their place of worship. Refusal or non-use of benefits. Charity seeks advice on how to complete the written acknowledgment required of its donors to substantiate contributions under Internal Revenue Code section 170(f)(8) with regard to benefits refused or not used by a donor. Charity provides its donors with an annual statement of all payments made by a donor to the charity in the tax year and all goods and services it provided to the donor in that year. Examples: (1) Charity sends out dinner invitations to all donors who recently have made contributions exceeding a threshold amount. Even if, in this case, the dinner is considered a benefit connected to the contribution that would ordinarily reduce the de-duction, a donor who does not attend the dinner need not reduce his contribution by the value of the dinner and need not decline in writing, (2) Donor made a single cash gift of $1,000 and charity provided the donor with two tickets for orchestra seats to a show valued at $65 each. Assume the Donor's gift was a quid pro quo contribution. In addition to acknowledging the $1,000 gift: (a) If the Donor retained the tickets but did not attend the show, charity's statement should indicate that the Donor received tickets val-ued at $130; or (b) If the Donor returned the tickets to charity, the statement should indicate that the Donor received no benefit in consideration of the $1,000 gift. 4. Charity requests guidance regarding the amount of a donor's income tax charitable deduction for unreimbursed charitable expenses. (A) A president, campaign chairperson, or other offi-cer, board member or employee of a charity pays his or her own expenses in order to attend the char-ity's annual business conference. That individual is a delegate of the cha