Accepted Answer

Hello dannelson,

When someone makes a donation to a qualified not for profit organization, if they also receive a benefit of any type in return, then they may only claim a deduction for the part of their donation which exceeds the fair market value of what they received in return for the donation. So if someone gives you a donation of $200, and in return you give them a place to stay for up to 31 days, then in all likelihood, none of their donation would be deductible, as I am certain the value of housing for 31 days would far exceed the $200.

However, something else to keep in mind is that in order to even claim a deduction for a charitable contribution, you must have enough income to file a tax return and you must have enough deductions that you are able to itemize. If these veterans are currently unemployed or only working part time or otherwise have limited income, then a deduction for a charitable contributio is really of no value to them to begin with, as they are not likely even subject to any income taxes.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you dannelson.

Expert:	Merlo
Pos. Feedback:	99.8 %
Accepts:
Answered:	5/30/2009

Accountant

25+ years tax consulting. Specializing in returns for US citizens living abroad