LLL in the USA WORLD BREASTFEEDING WEEK CELEBRATIONS
FREQUENTLY ASKED QUESTIONS
Q: What kind of tax receipt
should my group provide? What does the IRS require?
A: WBWC provides you with three types of receipts,
all of which meet the IRS guidelines. The Receipt Forms
(3 to a page) can be used for either donated items or as a cash receipt.
Follow the directions on the form. The Thank You Cards
also provide the required wording. The Donor Incentive
Flyer also fulfills the IRS requirements. Simply fill out the top half of
the form and return to donor
IRS Publication 1771, Charitable
Contributions – Substantiation and Disclosure Requirements,
explains the federal tax law for charities that receive tax-deductible contributions
and for taxpayers who make contributions. In addition, there is a new tax law
change enacted under section 1217 of the Pension Protection Act of 2006. Under
this provision, a donor cannot claim a tax deduction for any contribution of
cash, check or other monetary gift made on or after January 1, 2007, unless
the donor maintains a record of the contribution in the form of either a bank
record (such as a cancelled check) or a written communication from the charily
(such as a receipt or a letter) showing the name of the charity, the date of
the contribution, and the amount of the contribution.
Contributions of $250 or more have special requirements:
- 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
donation on his/her federal income tax return. The acknowledgment must be
contemporaneous or received by the date the donor files his return or the
due date. Typically the acknowledgment is sent when the donation is made or
by January 31 of the year following the donation. It can be in any form (postcard,
letter, etc.) but must contain the following:
1. Name of organization
2. Amount of cash contribution (no matter how small)
3. Description (but not the value) of non-cash contribution
4. Statement that no goods or services were provided by the organization
in return for the contribution, if that was the case.
5. Description and good faith estimate of the value of goods or services,
if any, that an organization provided in return for the contribution.
- 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. The acknowledgment must describe goods or services and provide
a good faith estimate of the value because a donor must generally reduce the
amount of the contribution deduction by the fair market value of the good
and services provided.
Note: The Donor Incentive Flyer fulfills
the IRS requirements. Simply fill out the top half of the form and return to
donor.
FAQ Index
