Non-Profit Eye on Donor Documentation

"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.

Thanks Pam! 

 

Comments

[pam ashlund]

u are very welcome!

[Pam]

Hi again Beth, my brother-in-law has a post on taking advantage of IRS loopholes to give stock to charities. It's at:
http://www.zachary.com/s/blog/2006/12/06/securities.taxes.charitable.gifts