JD writes:
> I don't know that this is entirely correct. Professional services ARE
> deductable if they a) create or enhance a non-financial asset, b) require
> specialized skill, c) are provided by someone who possess those
> specialized skills and d) would normally have to be purchased.
> (SFAS 116 is referenced, though I haven't found that source document yet.)
> So, wading through all that, it seems that a donated tuning for auction
> would NOT be deductable because it creates or enhances a financial asset
> for the non-profit, but a donated tuning to the local Ronald McDonald
> house's piano WOULD be deductable. N'est-ce pas?
No, SFAS 116 does not say professional services are deductible. It says that certain professional services need to be included by the non-profit in their financial statements. You can read more about SFAS 116 here:
http://www.blueavocado.org/node/330
It says nothing about the deductibility of donated services. In a previous posting on this question Bob Davis has cited the definitive IRS Publication 526, p. 6.
Robert Scott
Ypsilanti, Michigan
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