If a donor pays $500 to attend a reception at an organization’s headquarters, which of the following is correct with regard to the donor’s tax deduction?
a. The donor cannot take a tax deduction because he or she received something in exchange for the gift.
b. The donor can deduct the $500 because all of the money went to the nonprofit organization.
c. The donor can claim a deduction for any portion of the $500 that exceeds the nonprofit’s costs associated with the reception.
d. The donor can claim a deduction for any portion of the $500 that exceeds the fair market value of the benefits he or she received by attending the reception.
e. The donor can claim a tax deduction if the nonprofit is not subject to the Charleston principles.
d. The donor can claim a deduction for any portion of the $500 that exceeds the fair market value of the benefits he or she received by attending the reception.
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