A. Gifts and Charitable Donations
Gifts and charitable donations are tax deductible for the donor. As noted in “Responsibility for Acknowledging Gifts and In Kind Donations,” the donor must have a written acknowledgment of individual gifts of $250 or more. The donor is also responsible for establishing the value of non-cash donations.
B. Personal Income from 4-H projects
- Professional Services: An individual paid $600 or more in a calendar year (January 1st–December 31st) from a 4-H organization will receive an IRS Form 1099 (see “Responsibility for Paying Taxes on Raffle Proceeds”). This income must be reported with personal tax returns.
- Youth Projects: The auction of an animal or other 4-H project can generate income for the 4-H youth participant. This income is not subject to sales tax (due to casual and isolated sale provision), nor income tax due to the age and/or income of the 4-H youth.
C. Out-of-Pocket Expenses
As a coordinator or leader of a 4-H club, you may be able to deduct some of the amounts you pay in giving services to the organization. The amounts must be:
- Unreimbursed. You cannot be subsequently repaid for these costs by another source.
- Directly connected with the services you provided.
- Expenses you had only because of the services you gave.
- Not personal, living, or family expenses.