Section 170 of the Internal Revenue Code allows income tax deductions for charitable contributions. The typical donations are cash or property. If property is donated, a deduction is clearly allowed provided the fair market value is determined.
However, not all contributions are deductible. What about the contribution of services? How about the contribution of air time by a radio station or space in a newspaper? Or with the internet becoming the preferred choice of communication, how about free advertising by an internet service provider to a charity?
The Internal Revenue Service has made a distinction between contributions of property and contributions of services. Though the difference is enigmatic in certain instances, generally, a contribution characterized as a service, unlike those which are determined to be a gift of property, will not be tax deductible.