Donations and tax receipts

Gifts of $250 or more

For any single contribution of $250 or more, the donor needs a contemporaneous written acknowledgment from your organization to claim a deduction. The acknowledgment should include the following.

• The name of the organization
• The amount of cash contributed, or a description (not a valuation) of non-cash property
• A statement of whether the organization provided any goods or services in return
• If it did, a description and good-faith estimate of their value

Sending receipts for every gift, regardless of size, is good practice and good stewardship.

Quid pro quo contributions over $75

When a donor pays more than $75 and receives something in return, such as a gala dinner, you must provide a written disclosure stating that only the amount above the value of the goods or services is deductible, along with a good-faith estimate of that value.

Non-cash gifts

Describe donated property, but do not assign it a value on the receipt. Valuation is the donor's responsibility. For donated property worth more than $5,000, donors generally need a qualified appraisal and may ask you to sign part of IRS Form 8283. If you sell or dispose of certain donated property within three years, you may need to file Form 8282.

Volunteer time

The value of volunteer services is not deductible. Volunteers may be able to deduct unreimbursed out-of-pocket expenses incurred while serving, and your acknowledgment can describe those services.

Keep donor records

Record each gift with the donor's name, date, amount, and any restrictions. Keep copies of acknowledgments. These records also support your annual Form 990 and state registrations.