I'm no tax expert, but it seems to me that several things on this issue are being conflated together by some. First, there are different rules for the receiver of the funds and the giver of the funds. Each is separately responsible for keeping their own records and for complying with the different regulations that apply to each.
Second, I believe there are also different regulations for the giver, depending on what status/name they use to give the funds. The information quoted above would definitely apply to an individual who is making a personal donation in their own name. As correctly stated above by GB, IF they itemize deductions, they can claim the expense according to the rules for donation to a charity. If they don't itemize, no personal deduction.
HOWEVER, if the funds are being given in the name of a business (or by a sole proprietor operating as a business), it would seem to me that the giver could consider that 'sponsorship' as a business expense and could therefore include the entire amount on their Schedule C, along with all other business expenses. Regardless of what status the donor claims (which is irrelevant to the receiver), the receiver is still responsible for providing them a confirmation letter, in accordance with their own regulations. Then it's up to the donor how they choose to use it - or not.
Maybe this is an oversimplification, but it makes sense to me. If there are any CPAs or tax preparers still on this forum, perhaps they could chime in and straighten us out...
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