Per The Kiplinger Tax Letter (August 31, 2012):

“Earmarking a donation for one person’s benefit kills the tax deduction, the Service privately rules. In this situation, a donor who contributed to her church’s scholarship fund wanted the church to use the money she gave for the college tuition costs of the minister’s daughter. The contribution is recast as a gift to the minister’s daughter, and no deduction is permitted.”

Stephen Osborne
Accountant
sosborne@mo-cpa.com