2021 IRS charitable deduction: is gift card same as cash?

[stout]

I was asked to donate for a silent auction fundraiser for a nonprofit I am associated with. I have $150 in Landry’s gift cards I would like to donate (won’t be using them soon). Will I be able to claim this as an above the line charitable deduction for 2021? If yes, I’ll give them that. If not, I’ll give them the same amount in actual cash. Thank you in advance!

 

[georgina]

I was asked to donate for a silent auction fundraiser for a nonprofit I am associated with. I have $150 in Landry’s gift cards I would like to donate (won’t be using them soon). Will I be able to claim this as an above the line charitable deduction for 2021? If yes, I’ll give them that. If not, I’ll give them the same amount in actual cash. Thank you in advance!

The turboTax service online says they are the same as cash. As long as the charity is qualified it should be fine. You don't need a letter from the charity if it is less than $250, but I usually save all my contribution confirmations.

 

[supersnoop]

I'm pretty sure you're supposed to claim your cost basis for any donation. If you paid $150 for the gift cards, then you can write that off. If you got them at a discount, then you'd write off what you paid for them. If you got them for free, then, you can't write them off. That applies to any item you donate.

 

[georgina]

I'm pretty sure you're supposed to claim your cost basis for any donation. If you paid $150 for the gift cards, then you can write that off. If you got them at a discount, then you'd write off what you paid for them. If you got them for free, then, you can't write them off. That applies to any item you donate.

Perhaps for gift cards*, but certainly not true in the case of appreciated assets like stock. You don't claim the cost basis for that, you claim the full value. If you donate clothing to Goodwill, you don't write off what you paid for it, you use the value at the time of donation.
*I'm not sure it's true for GC, you donate something worth $150, why you couldn't claim that. I may look it up later. Logically if someone gave you cash that would mean you couldn't write it off?

 

[supersnoop]

Perhaps for gift cards*, but certainly not true in the case of appreciated assets like stock. You don't claim the cost basis for that, you claim the full value. If you donate clothing to Goodwill, you don't write off what you paid for it, you use the value at the time of donation.
*I'm not sure it's true for GC, you donate something worth $150, why you couldn't claim that. I may look it up later. Logically if someone gave you cash that would mean you couldn't write it off?

Stocks are different; you're correct. Most items, however, are either the cost basis or the fair market value, whichever is lower. Generally, the IRS considers gift cards to be "non-cash" donations. The exception would be if you owned the business and donated a gift certificate for your own store, which would qualify as a cash donation.