Posted on Jan 7, 2019

The Legacy Group, Ltd.

Donation Details:

Donating money to our favorite charitable organization is a year-end ritual for many of us. While monthly giving has gained in popularity in recent years, most of us still tend to open up our wallets just a bit wider at the end of the year.

But what about the organization that we’re giving to? What are they required to do once they receive our donation? If you’re unsure, here’s a quick run-down of what you should expect.

For a standard donation, you should expect a receipt. While a charitable organization is not required to provide a receipt to donors unless the donation exceeds $250.00, most organizations do so anyway. Those that do not send a receipt will typically send a donation acknowledgement. In a pinch, donors can always use their cancelled check as a receipt should the organization not provide one.

A valuation of any items you may have received in exchange for your donation. Most receipts from a nonprofit organization typically include a disclaimer that states that you did not receive any goods or services in return for your donation. That means that if you are using your donation as a tax deduction, the amount of your deduction is the amount on the receipt. However, this process changes if in fact you do receive something in exchange for your donation. In that case, the acknowledgement letter must state the value of what was received and the subsequent value of your donation.

To read the rest of the article, click on "Learn More" below.
Contact Us
Message sent. We'll get back to you soon.