WASHINGTON, D.C. (The Adobo Chronicles) – It’s that time of the year when U.S. taxpayers start receiving their tax forms like W-2’s and 1099’s, as well as their donation receipts for their 2014 charitable donations which are fully tax-deductible (unless they received goods or services as part of their donations).
The summer of 2014 saw one of the most successful donation campaigns in nonprofit history — the Ice Bucket Challenge to benefit the ALS Association. It was a campaign that went viral worldwide, raising hundreds of millions of dollars for ALS research.
As Americans begin to file their 2014 income tax returns, the Internal Revenue Service (IRS) announced a ruling that only 80% of donations to the Ice Bucket Challenge is tax-deductible. The remaining 20% will be used by state governments to make up for all the water that went to waste as a result of the ice bucket challenge campaign.
In California, which continues to experience a severe drought, taxpayers can only deduct 60% of their donation to the Ice Bucket Challenge.
Taxpayers who made donations to the campaign are advised to consult with their tax attorneys to avoid being audited by the IRS.