are political action committee contributions tax deductible
During the 2008 campaign cycle, donors poured more than $5 billion into federal elections. This election season, even more money is likely to flood in, because it’s the first presidential election since several court decisions loosened campaign-finance rules. SEE ALSO: Washington Matters -- Kiplinger's political column. 2. The sky is not (always) the limit. While there are plenty of tax-exempt organizations dedicated to feeding the hungry, there are many organizations that express opinions about political issues of all types, across the entire political spectrum. According to federal election law, individuals may donate up to $2,500 per candidate per election (the primary and general elections are counted separately), up to $30,800 to a national political party annually, and up to $10,000 to state, district and local parties combined each year. 1 A ticket to a dinner or program that is intended to benefit a political party or candidate. 2  A ticket to any inaugural event -- including balls, galas, concerts, parades, etc. -- since such events are generally associated with the installation of elected political candidates. Any donation to a political party, campaign, or action committee is non-deductible. Other non-deductible contributions are those to individual people, labor unions, business associations, for-profit schools, for-profit hospitals, foreign governments, and fees paid to associations or state or municipal governments. Donations are deductible if the organization you give to is a 501(c)(3) tax-exempt charity. This means that the organization has tax-exempt status, which is a special designation obtained from the IRS. Some organizations, mostly churches and religious organizations, are not required to apply for tax-exempt status but others like political campaigns and offices are. Many political organizations are automatically disqualified from this status. So, if you want to support an organization in a general sense, a contribution to its charitable operations could be a good bet. Your money may not be used directly for political purposes, but if you itemize deductions, you will be able to write off the contribution on your federal tax return. “There are very few restrictions on what a political organization can do with its money,” says Paul Ryan, a lawyer at the Campaign Legal Center. Still, PACs and Super-PACs must disclose their spending in regular reports, which are available on the Federal Election Commission’s Web site. 6. Let the sunshine in. 1 Advertising in a political party's convention program, or in any other publication, if part of the publication's proceeds benefits a political party or candidate. 2  A ticket to a dinner or program that is intended to benefit a political party or candidate.
No