What is the difference between amount and tax-deductible amount?
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Modified on: Mon, 18 Jul, 2022 at 4:23 PM
When entering a transaction, the tax-deductible amount defaults to the same amount as the transaction. Tax-deductibility depends on your organization's status as a nonprofit and the tax rules associated with that status. For nonprofit organizations, all or part of the transaction could be tax-deductible if no goods or services were received in exchange. If goods or services were received, for example a meal was received as part of an event purchase, only the difference is tax-deductible. For a $200 ticket, the constituent received a meal valued at $50, only $150 is tax-deductible.
Be sure to check with current local, state, and federal regulations and your accountant regarding tax-deductible giving to ensure you are in compliance.
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