What is the maximum allowable monetary donation for which no goods or services are provided that requires a receipt?

What is the maximum allowable monetary donation for which no goods or services are provided that requires a receipt?

• A. $100
• B. $200
• C. $250
• D. $300

Answer: (C)

The maximum allowable monetary donation for which no goods or services are provided, and that requires a receipt, is $250. This threshold is significant in the context of tax deductibility for monetary contributions. The IRS requires that for donations of this amount or more, charities must provide a written acknowledgment to the donor. This acknowledgment serves as a receipt and must include specific information, such as the amount of the contribution and a statement that no goods or services were provided in exchange for the donation. Donations below this threshold do not necessitate a receipt, as they are considered more manageable for personal record-keeping and less burdensome for charitable organizations in terms of compliance. Understanding this limit is essential for both donors and charities to ensure proper documentation and adherence to tax regulations.

The maximum allowable monetary donation for which no goods or services are provided, and that requires a receipt, is $250. This threshold is significant in the context of tax deductibility for monetary contributions. The IRS requires that for donations of this amount or more, charities must provide a written acknowledgment to the donor. This acknowledgment serves as a receipt and must include specific information, such as the amount of the contribution and a statement that no goods or services were provided in exchange for the donation. Donations below this threshold do not necessitate a receipt, as they are considered more manageable for personal record-keeping and less burdensome for charitable organizations in terms of compliance. Understanding this limit is essential for both donors and charities to ensure proper documentation and adherence to tax regulations.