Jump directly to the content

Tax Court Rules Contribution to Foreign Charity Was Not Deductible

Contributions must go to U.S. charity organizations.

Alisobhani v. Commissioner, T.C. Memo. 1994-629 (1994)

Background. Church members sometimes make contributions directly to religious organizations or ministries overseas. Or, they make contributions to a United States religious organization for distribution to a foreign organization. Are these contributions tax-deductible? That was the issue addressed by the Tax Court in a recent ruling.

The Tax Court ruled that a taxpayer who sent contributions to a mosque in his family's home town in Iran was not entitled to a charitable contribution deduction. The Court noted that to be deductible a charitable contribution must go to a charity organized in the United States.

Importance to church treasurers. Federal law specifies that a charitable contribution, to be tax-deductible, must go to an organization "created or organized in the United States or in any possession thereof." In addition, the organization ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
Posted:
  • March 1, 1995

Related ResourcesVisit Store

2020 Church & Clergy Tax Guide
2020 Church & Clergy Tax Guide
Find comprehensive help understanding United States tax laws as they relate to pastors and churches.
Talking to Your Congregation About Money
Talking to Your Congregation About Money
Helpful insights on talking about money and encouraging people to become generous givers.
Church Fundraising Campaigns
Church Fundraising Campaigns
Discover tips on raising and borrowing money.
Increase Giving at Church
Increase Giving at Church
Develop practical and digital strategies to cultivate a culture of giving.