50% being deductible for who? You mean Dr. Phil could only claim half or the Foundation would only pay taxes on half?
Dr. Phil wouldn't care about that - the 50% that is non-deductible slides into production costs and is still non- taxable.
The question for me is did the Foundation have to pay taxes on the Dr. Phil money. Legal expenses at 125K would be Lippman's share, less 100K to a charity, leaving them $375K. So did they have to pay taxes on the 375K?
If they had to pay any taxes and paid their house off and bought a couple of news cars - I still say they don't have much money left.....
I assume the donor could only deduct 50% of his contribution. Since the 990 hasn't been filed, there is no way to figure out if the A's had to pay any taxes unless someone in the know tells, and they ain't talking.
One would think it would be illegal to spend money for anything other than the stated mission. I guess the lawyers know how to make sure that all expenditures were legal.
JMO