I read you cannot deduct professional services donated to non-profits. I was wondering if you can have them pay you and then donate earnings back to them to do the same.

[edg234]

This is just hypothetical stuff I'm thinking about for next year. For instance, my church needs work done on their website but won't necessarily have the funds to pay me to do the work.

[jerry2000 · Accepted solution]

If the non-profit pays you, you will have to report that as taxable income. If you then donate it back, you can claim the donation as a charitable contribution but it DOES NOT offset the income dollar for dollar. The maximum benefit that you get from a donation, assuming that you have enough itemized deductions to exceed your standard deduction, is the amount of the donation times your marginal tax rate. For example, if you are in the 25% marginal tax bracket a deductible contribution of $100 would reduce your tax by $25. And unless your itemized deductions add up to be more than your standard deduction, you get no tax benefit at all from the contribution.

[edg234]

So there would really be no benefit in doing this even if I do itemize my taxes?

[jerry2000]

No, there would be no benefit.

[edg234]

Thanks for the help!