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The amount donated may be deducted as a charitable gift or it can be an interest free loan (depending on the amount of the loan).
Iindividuals can make up to $250,000 in interest-free loans to nonprofits (qualified 501(c)(3)s) each calendar year without imputed interest or phantom interest but also no charitable deduction for value of the “gift” of the interest from the tax-free loan).
If over that amount of loan then the interest is added as income and a deduction is taken on Schedule A.
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