Charity Tax Law Case Study by Nicky

Charity Tax Law
Four case studies on tax law regarding charitable donations.
# 151113 | 755 words | 2 sources | APA | 2012 | US
Published on May 22, 2012 in Economics (Taxation) , Law (General)

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The paper outlines four case studies that address the tax law concerning a charity auction process, a donation in the form of stock to a charitable organization, a property and volunteer work. The paper explains the various tax implications in all these cases.

Case Study 1
Case Study 2
Case Study 3
Case Study 4

From the Paper:

"Each of these groups of individuals requires a separate answer. For those who purchased tickets to the event, though receipts may be provided (and might be mandated by law), there was no gift made--there was a material quid pro quo received by the purchaser, and therefore the cost of the ticket is not considered a charitable gift nor is it tax deductible (Hopkins 2005, pp. 58). The same can basically be said of those who purchased art through the auction process, though there are complicating factors. If a purchaser paid more than fair market value for a particular piece, the difference may be tax deductible (Hopkins 2005; pp. 126). Due to the auction process, however, fair market value would most likely be established as the purchase price, rendering this exception moot.
"This applies to the artist as well; assuming that the money for the sale went to the charitable organization, the donor of the art is entitled to a write-off of the fair market value of the donation, regardless of its value at the time it was acquired/created by the donor (Hopkins 2005, pp. 126). They, and not the purchaser of the art, are actually out the value of the artwork, and thus the deduction applies to the artist/gallery, and not to the purchaser or doubly to both."

Sample of Sources Used:

  • Hopkins, B. (2005). The tax law of charitable giving. Hoboken, NJ: Wiley.
  • Teitell, C. (2007). "Tax Deductions for Volunteers." The Grantsmanship Center. Accessed 15 October 2009.

Cite this Case Study:

APA Format

Charity Tax Law (2012, May 22) Retrieved February 25, 2021, from

MLA Format

"Charity Tax Law" 22 May 2012. Web. 25 February. 2021. <>