Exempt Organizations Advisory - Accelerated Deductions for Donations to Haiti

Catherine W. Wilkinson (cwilkinson@steptoe.com)
Suzanne Ross McDowell (smcdowell@steptoe.com)

Congress has passed legislation that allows taxpayers to accelerate deductions for charitable contributions made for Haitian relief efforts. Under the provision, donations that are “cash contributions made for the relief of victims in areas affected by the earthquake in Haiti” can be deducted in 2009 as long as they are made after January 11, 2010 and before March 1, 2010. Contributions must still qualify under section 170, but donors who made contributions via text messages can meet the substantiation requirements with telephone bills that show the name of the organization and the date and amount of the gift. President Obama is expected to sign the bill soon.