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Contribution Confusion:
Are Political Contributions Tax Deductible?
The price tag of running a political
campaign these days is steep. George Bush and John Kerry each amassed
a war chest of more than $200 million, largely through contributions
from hundreds of millions of Americans.
Whether you made a campaign contribution online or supported your
favorite candidate by attending a local fundraiser, at tax time you
may ask yourself: “Am I able to write-off my donations to political
candidates or organizations?”
“The answer is a definite No,” declared Jackie Perlman,
a tax researcher with H&R Block.
Perlman explains, “The tax law is very clear that contributions
to political campaigns and political organizations are not deductible,
either by individuals or by businesses. This also includes out-of-pocket
expenses you may have incurred while working on behalf of a political
candidate or party.”
For example, if you attend a $100 fundraising dinner or private reception
for your favorite candidate, you should feel good about exercising
your political freedom - just don’t try to exercise it as a
tax write-off. Even if the candidate or political party ends up giving
the proceeds to a charitable organization, you’re still prohibited
from deducting any portion of the contribution because you gave it
to a political organization, not to a charity.
The same non-deductibility rule applies to advertising in political
publications, such as a convention program, or purchasing a ticket
to an inaugural ball, gala or other event which is political in nature.
Donations to political action committees are also nondeductible if
the committee uses the funds to influence the election of an individual
to public office.
It’s doubtful we’re going to see a decline in the amount
of money it takes to run a campaign for public office. Which means
you can continue to count on being bombarded with candidates’
phone and mail solicitations asking for your political and financial
support. However, don’t count on Uncle Sam to give you a break
for doing so.
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