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FAQs for Hurricane Victims - Charitable Contributions

FAQs for Victims of Hurricanes Katrina, Rita and Wilma, and Victims of the Midwestern Disasters of 2008

(03/09) Q: In the following example, is a contribution made by a corporation to the University considered to be for relief efforts from Hurricanes Katrina, Rita or Wilma such that the 10 percent income limit is waived?

Example - University suffers substantial damage from the storm. University sets up a “relief fund” to help it recover from the storm. Contributions to the relief fund will go towards repairing damage to the University, providing financial assistance to University faculty and students affected by the storm, and covering operational expenses during the period the University had little income from tuition and other sources.

A: Yes, if (1) the relief fund was established for relief efforts related to Hurricanes Katrina, Rita or Wilma; (2) the contribution was made during the period beginning on August 28, 2005, and ending on December 31, 2005; (3) the corporation substantiates that the contribution is made for these relief efforts; and (4) the corporation elects the application of § 1400S(a) of the Code.

Similar relief with respect to charitable giving incentives was also made available to charitable contributions made in response to certain of the Midwestern Disasters of 2008. See page 4 of Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas.

(03/09) Q: Would it make a difference if the corporation made the contribution to the University’s annual fund rather than specifically to an account called a “relief fund”?

A: No, if (1) the corporation substantiates that it made the contribution for relief efforts related to Hurricanes Katrina, Rita or Wilma; (2) the contribution was made during the period beginning on August 28, 2005, and ending on December 31, 2005; and (3) the corporation elects the application of § 1400S(a).

Similar relief with respect to charitable giving incentives was provided in response to certain of the Midwestern Disasters of 2008. See page 4 of Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas.

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Page Last Reviewed or Updated: 11-Sep-2013