While most donors care more about the reason for giving than they do about the tax implications, the spirit of giving should never be reduced by unexpected tax results.
A gift is an unconditional transfer of cash or property without personal benefit to the donor. The mere transfer of funds to a church or charitable nonprofit is not necessarily a gift. Thus, when a parent pays the college tuition for a child, there is no gift or charitable deduction.
If payments are made to a charity to receive something in exchange, the transaction is more in the nature of a purchase. The tax law states that a transfer to a nonprofit is not a contribution when made "with a reasonable expectation of financial return commensurate with the amount of the transfer." When one transfer comprises both a gift and a purchase, only the gift portion is deductible.