According to the IRS, nonprofits must give donors written confirmation of their contributions. If incorrect information about the tax deductibility of the gift is given, you risk experiencing the wrath of the IRS on the donor as well as your organization.
Donors must keep track of all their donations regardless of the amount. For donations under $250, something as simple as a bank record will do. For charitable contributions over $250 in value, the organization must provide a written acknowledgment .
The written acknowledgement must include:
1) The organization’s complete name
2) The date
3) The amount of the gift
4) A statement that the organization received the gift
5) A statement whether the donor received any goods or services in exchange for the gift
The above information must be given to the donors by the time they file a tax return for the year the gift was made.
Further disclosure statements are required if gifts are over $75 and the donor receives goods or services in return. Organizations must state only the excess of the donation over the goods/services as a charitable contribution, and they must also state the estimate value of the goods and services that was exchanged.
For contributions over $10,000 in value, you must file an IRS Form 8300 and provide the donor with a copy.
When you receive an individual donation, wouldn’t it be a good idea to include this information with your Thank You note?