Direct Mail Marketer

Direct Mail Marketing Guidelines

Company limit on gifts for tax donation?

I have been told recently that when you create a Direct Mailing or "donate and get this free gift" you must deduct the fair market value on the subject. They also told me that the IRS allows products to be given under $ 25. I want to develop a donation program and would like to have the correct IRS guidelines in place. Is there a limit on the price of "gift"? Is there a level at $ 25 when the fair market value need not be deducted? I work for a 501c3, so they are non-profit and trying to raise additional donations. We use these gifts as an incentive to give more and also say "thanks." One of the points is a good jacket for $ 80 that we have been able to obtain a cost reduced by a vendor.

Charitable contributions are limited to the cash or fair market value of the contribution. You must deduct the fair value of everything you received as a result. The rules cover a $ 25 gift furnished to clients or "diminimus fringe benefits provided by the employer to employees.

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