According to IRS regulations, a contributor to a non-profit organization can only deduct the amount of a gift which goes beyond the value of any materials received. A receipt should show the total contribution after the fair market value of any items rece ived has been deducted.
However, Concerned Women sells merchandise at fair market value and provides the purchaser with a tax-deductible receipt. For example, the group's November 1989 tenth anniversary celebration conference is available on videocassette. The complete set of th ree tapes costs $69.95, plus $6 for shipping and handling, which totals $75.95.
Purchasers of the tapes receive a receipt which states: "Official Income Tax Receipt. Thank you so much for your generous gift to Concerned Women for America. Your gifts are tax deductible. Gift Amount: $75.95."