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* If you receive a benefit as a result of making a contribution to a qualified organization, you can deduct only the amount of your contribution that is more than the value of the benefit you receive.
If you pay more than fair market value to a qualified organization for merchandise, goods, or services, the amount you pay that is more than the value of the item may be a charitable contribution.
Example 1. You pay $75 for a dinner-dance at a church. All the proceeds of the function go to the church. The dinner, plus any entertainment or other services provided, has a fair market value of $25. Subtract the value of the benefit you received ($25) from your total payment ($75). You can deduct $50 as a charitable contribution to the church.
Example 2. At a fund-raising auction conducted by a charity, you pay $600 for a week's stay at a beach house. The amount you pay is no more than the fair rental value. You have not made a deductible charitable contribution.