What's more, donors cannot deduct on their tax returns any gifts over $250 unless they have a written acknowledgment from the recipient.

Under current law, donors of, say, a painting, can deduct only what they paid for the art.

Now, donors who get the right to buy seats can deduct 80 percent of their contributions.

Because of a quirk in the tax laws, moreover, a board's investment options are limited and individual donors can't deduct donations from their taxes, Mr. Andrew said.

Effective today, donors to that group can no longer deduct their contributions on their income tax returns.

In some cases, financial donors may claim back any income tax paid on their donations, or deduct from their own tax liability the amount of the donation.

One is that individual donors can deduct higher percentages of their contributions.

The donor may deduct only 50,000 USD in 2004.

The main advantage of charitable entities is that donors can deduct gifts to them, whereas donations to political groups are taxed.

The reason: a Federal tax law that permits donors of valuable objects to deduct their full market value, determined by an outside appraiser, on income-tax returns.