This information applies only to those people who file federal income tax returns in the United States, which is basically any citizen or resident of the United States.
ElijahList Ministries is a U.S. registered 501(c)(3) tax-deductible nonprofit organization. The IRS has very specific regulations concerning the eligibility of donations to such organizations for tax purposes. We will summarize these regulations simply and clearly below.
The IRS allows you to consider as a tax-deductable donation only the amount of the donation which is
over the fair market value of the benefit you receive.
If you make a one-time donation or monthly donation
without receiving a monthly MP3 in return, then your
entire donation is considered tax-deductible under IRS regulations. But if you decide to make a monthly or one-time donation
and receive a monthly MP3, then the fair market value of the MP3s will be excluded from the amount of the donation that the IRS considers tax-deductable.
For example, let's say that you decide to donate to ElijahList Ministries $50 per month
and to receive the monthly MP3. The fair market value of the MP3 is $5. So as far as the IRS is concerned, only $45 per month ($50 donation minus $5 fair market value) will be considered tax deductible.
As another example, let's say that you decide to donate to ElijahList Ministries a one-time gift of $200
and to receive a year's worth of monthly MP3s (12 MP3s). The fair market value of the MP3 is $5 per MP3. Because you will receive 12 MP3s, the total fair market value of the MP3s is $60 (12 MP3s at $5 each). So as far as the IRS is concerned, only $140 ($200 donation minus $60 fair market value) will be considered tax deductible.
In compliance with IRS regulations, at the beginning of each year we will mail you a statement of the previous year's donations which you have made to ElijahList Ministries. The statement will list all of the donations you made, the fair market value of any benefits (products) you received, and the resulting amounts that the IRS will allow as tax-deductible contributions.
For more details, follow these links to the IRS Web site: