When donating to charities, do you have to pay tax?

Question

I didn't think I had to pay tax on charitable donations; yesterday I bought a 'red pin' at Gap as a donation toward helping Africa, and was charged sales tax. Should I have been?

Answer 1

You purchased the pin, the store has to charge sales tax on purchases if the State requires it. If you had gotten the pin directly from the organization and donated money and they gave you the pin as a token of appreciation then no sale would have transpired and no sales tax would have been charged.

Answer 2

Buying an item isn't a charitable donation. The only part that can be deducted on your tax return is the amount paid MINUS the value of anything you received in return. It sounds like a portion of the proceeds from the sale will be given to the charity by the manufacturer.

Yes, the store was correct to charge sales tax.

Answer 3

Yes. Most personal property is subject to sales tax. What you do with the item after the purchase, is your own business.