30 Mar 2009 No Comments
The tax rules on records of charitable contributions
Tax time is coming, and we thought we’d spend some time on the IRS website so you don’t have to. When it comes to documenting charitable contributions, the IRS seems to put the burden squarely on the donor, but it also sets up some requirements for the organization receiving donations. Here are some tips we’ve culled from Uncle Sam’s turgid prose in Publication 1771, Charitable Contributions, Substantiation and Disclosure Requirements:
a charitable organization is required to provide a written disclosure to a donor who receives goods or ervices in exchange for a single payment in excess of $75
Although it is a donor’s responsibility to obtain a written acknowledgment, an organization can assist a donor by providing a timely, written statement containing the following information:
- name of organization
- amount of cash contribution
- description (but not the value) of non-cash contribution
- statement that no goods or services were provided by the organization in return for the contribution, if that was the case
- description and good faith estimate of the value of goods or services, if any, that an organization provided in return for the contribution
- statement that goods or services, if any, that an organization provided in return for the contribution consisted entirely of intangible religious benefits (described later in this publication), if that was the case
It is not necessary to include either the donor’s social security number or tax identification number on the acknowledgment.
As you can guess, this statement that no goods or services were received is pretty important, since without it, the donors can’t be sure how much of the donation is deductible. If you need more information about documenting charitable contributions, you’d be wise to consult a tax professional, or dig into the IRS website yourself. For information on getting a report of your Firstgiving donations, read this.
