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Loans made to a 501(c) (3)

Level 3

Hi everyone,

If a taxpayer has made few small loans over the years to a 501(c)(3), and now has been informed that they will not get that money back, can they classify this money as a charitable donation and deduct it on Sch. A? The full amount (since the loans go back few years), or just the amount loaned in 2022 for the 2022 return, for example? I'm leaning towards full amount because in 2022 is when they determined that the entire loan was not going to be repaid...

Also, I assume the non-profit would have to show the entire amount as income on their end for 2022.

Thank you 

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