NONPROFIT QUICKTIPS^SM
An electronic publication of Pfau Englund Nonprofit Law, P.C.

Disclaimer: This publication is designed to provide accurate information in regard to the subject matter covered. However, it is not intended to provide legal or other professional advice. If legal advice is required, the services of a competent professional should be sought.

Contributions to Individuals

Periodically nonprofit groups tax-exempt as charitable and educational organizations under section 501(c)(3) of the Internal Revenue Code like to make contributions to individuals, such as educational scholarships or research grants. While such aid may be charitable, the IRS has strict rules for providing grants to individuals.

IRS rules generally prohibit charitable deductions for contributions to individuals. This includes contributions that are made to a tax-exempt charitable organization and passed-through to a designated individual. Qualified scholarship or grant-making organizations may provide scholarships and grants to individuals, and contributions to these organizations are tax-deductible, provided that the organization follows IRS non-discrimination rules for accepting applications and making grants to individual.

Return To: Fundraising

Nonprofit QuickTipsSM is a periodic electronic publication of Pfau Englund Nonprofit Law, P.C. It is intended to provide nonprofit executives with useful, quick legal tips. If you have a topic you would like covered in this publication, or know someone who would like to be added to our e-mail list, please contact the firm.

The purpose of this site is to give you legal information. However, no attorney-client relationship is created by your use of this site or any of its features. Because legal advice must be tailored to the specific circumstances of each case and laws are constantly changing, you should seek the assistance of competent legal counsel for specific legal advice. Pfau Englund Nonprofit Law, P.C. provides high quality, affordable, legal services for a wide variety of nonprofit organizations. Please contact us if you would like to engage our firm to assist you with the legal needs of your nonprofit organization. Admitted in the District of Columbia and Virginia. Practice otherwise limited to matters and proceedings before federal agencies, such as the IRS. Copyright © 2007 - 2010 Sandra Pfau Englund. All rights reserved. Use of this site subject to Disclaimer.

Pfau Englund Nonprofit Law, P.C. 3213 Duke Street, #622, Alexandria, VA 22314 Voice: 703-304-1204 Email: spfau@nonprofitlaw.com