Political Contributions and Other Non-Deductible Gifts

Pollyanna King, CPA, MST •

As you pour through your checkbook register and piles of receipts for tax reporting items, you may need to make a list of your 2019 charitable donations. For people who file using the itemized deduction method, and report your donations on Schedule A instead of using the standard deduction, you should have a list with the charity’s name, the date and the amount that was given followed by a grand total for your record of 2019 charitable donations.

Note however, you should flag certain donations, such as political contributions, which might include donations:

• to a national political committee (DNC or RNC),
• to a local candidate running for legislative office, or maybe
• to a political fundraising event such as dinner.

 For these donations, you made a contribution, but it’s not a tax deductible contribution. And while it’s tempting to include this payment as a donation, especially if your candidate lost, the fact is: a tax deduction is not allowed and it should be scratched from the list.
 
This might seem unfair, but here’s the second punch: there are others types of donations you may have made that are not deductible. Here is a quick list of other charitable contributions that don’t count as a deduction as noted in IRS Publication 526:

1. Contributions to a specific individual,
2. Contributions to a nonqualified organization (as in not determined by the IRS),
3. The part of a contribution from which you receive or expect to receive a benefit,
4. The value of your time or services,
5. Your personal expenses,
6. A qualified charitable distribution from an individual retirement arrangement (IRA),
7. Appraisal fees,
8. Certain contributions to donor advised funds, or
9. Certain contributions of partial interests in property.

When in doubt, there’s nothing like talking with an experienced tax preparer. 
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