Donation credit for cancelled contract?

Question

A non-profit company wants to cancel my contract to provide services to them two months early (for cost savings - not for 'cause'.) I'd could make a legal case, but I dont' want to. I'd be happy with a credit for a tax-deductable donation for the portion of the contract that I am "waiving" for their benefit.

Can I deduct the "lost income" as a donation? What type of receipt should they give me?

Answer 1

No, you can't deduct it. It isn't income to you in the first place, since you never got it, so there's nothing to deduct.

If you sue them and win, you'll have to claim the amount as income.