Fried & Davis - Fundraising

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Does my nonprofit need to give receipts for charitable gifts?

Any gift of $250 or more cannot be claimed as a tax deduction by the donor unless there is contemporaneous written substantiation from the donee charitable organization.

How contemporaneous does the substantiation of gifts need to be?

For substantiation to be contemporaneous, it must be obtained no later than the date the donor files a tax return for the year in which the contribution was made.

How are multiple gifts of less than $250 handled?

Separate gifts are regarded as independent contributions and are not aggregated for purposes of measuring the $250 threshold. Note that donations from payroll deductions are considered separate payments.

How should a nonprofit handle payment made by a donor partly as a contribution and partly for goods or services provided to the donor (quid pro quo contributions)?

A charitable organization must provide a written disclosure statement to donors who made a quid pro quo contribution greater than $75. This disclosure must inform the donor the amount of the contribution that is tax deductible and a good faith estimate of the value of the goods or services the donor received.

Is there a penalty for failure to provide written disclosure statements for quid pro quo contributions?

A penalty is imposed on charitable organizations that do not meet the disclosure requirements. There is penalty of $10 per contribution, not to exceed $5,000, per fundraising event or mailing.