I would definitely talk to a tax attorney or CPA to find out if it is a qualified contribution. My Spidey sense (legal background) tells me it is not. Typically, such deductions would be for donations made to a charitable organization, not to an individual. Now, if you call it a gift instead of a donation, you may be able to slide it under the gift provisions of the IRS Code, but 1) the employee will be taxed for the gift as income, and 2) the max write-off, I believe, is $25 per employee. Again, better to ask a CPA or tax attorney.
- Vic Rivera