"I'm not a lawyer, I only play one YouTube" - Ken Goldstein
Well, I'm not a tax accountant and I don't even attempt to play one on my blog. When Britt Bravo asked about tax recepts for donors to Chip In campaigns, I wasn't sure of the answer. I don't need to because I asked Pam Ashlund, who isn't a CPA either, but a financial manager for a nonprofit and writes the Non-Profit Eye Blog. She responded with this advice in a post. (Thanks for using the widget too!)
For donors wanting to know how to claim a deduction for their contribution, you want: Publication 526; For charities wanting to know the requirements for charitable contributions substation and disclosure, look to: Publication 1771 (Rev. 7-2005) Charitable Contributions Substantiation and Disclosure Requirements
From Publication 1771:
There are two general rules that organizations need to be aware of to meet substantiation and disclosure requirements for federal income tax return reporting purposes:
- a donor is responsible for obtaining a written acknowledgment from a charity for any single contribution of $250 or more before the donor can claim a charitable contribution on his/her federal income tax return
- a charitable organization is required to provide a written disclosure to a donor who receives goods or services in exchange for a single payment in excess of $75
More on written acknowledgments and written disclosures is addressed in this publication.