Tuesday, June 26, 2018

Substantiating Charitable Contributions

    In this article, the IRS explains how contributors to charitable organizations can substantiate their contributions. The article begins by explaining that charitable organizations must provide written disclosure statements to donors of quid pro quo contributions in excess of $75. Quid pro quo contributions are defined as a payment made to a charity by a donor partly as a contribution and partly for goods and services provided to the donor by the charity. Next, the article explains what must be included in the disclosure statement. The disclosure statement must inform the donor that the amount of the contribution is deductible for federal income tax purposes is limited to the excess of any money contributed by the donor over the value of goods and services provided by the charity and provide the donor with a good faith estimate of the value of the goods and services the donor received. To learn more about how contributors can substantiate their contributions, click here: https://www.irs.gov/charities-non-profits/substantiating-charitable-contributions




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