One of our low-income elementary schools has requested we sponsor holiday “gifts” for an entire grade level. This is a school with over 90% of students qualifying for free/reduced lunch. They want to give each student a “gift” of winter wear such as gloves, hats, scarves and school supplies that the families cannot afford to replenish.

If we were writing a check to the school, who could purchase the “gifts”, I am confident it would qualify as a CRA donation. However, I’m a little concerned about trying to claim that a $500 Walmart shopping trip to purchase the items that the bank would in-turn donate to the school.

What are your thoughts?

We do those sorts of donations all the time. We include the letter of request from the school along with the 90% lunch documentation. We have never had an exam team question one of our Walmart supply or coat purchases.

Thanks Okie! It always helps to have someone chime in.

I agree. It doesn't matter which way the donation is done, simply that it is a bank donation.