How does PBS work? Why do they always give gifts in exchange for money?

Question

How does PBS work? Why do they always give gifts in exchange for money?

In: Other

Answer 1

I bought merch from a 501(c). Turns out they considered the transaction a donation. I received the stuff along with a receipt showing the cost of the merch deducted from the total price, so the remainder was a tax deductible donation.

For example:

Donation (what I paid): $50

Estimate fair market value of gift (merch I bought): $28

Amount of donation in excess of the fair market value of gift: $22

I can claim a donation of $22 to this charity from my $50 purchase of merch.