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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4416
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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I bought and prepared several gift baskets which I donated

Customer Question

I bought and prepared several gift baskets which I donated to a local rescue group (501c3) for an silent auction they were having. I gave them the value of the basket and all the items. I also bought some other items to be used at the fundraiser (food and decorations). Now I have asked them for a receipt for the items for a tax deduction and they tell me that they will not give me one unless I give them the receipts for what I paid for them. It was over $250. I did not keep the receipts because I assumed that they would have kept the values of the items I donated on a list somewhere. Can they deny me a tax receipt without my receipts? Thanks.
Submitted: 3 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 3 years ago.

Dear Friend,

 

Sorry to hear this. Let me clarify your standing in this circumstance.

 

Kindly note that the IRS publication 1771 issues guidelines to handle such issues.

 

http://www.irs.gov/pub/irs-pdf/p1771.pdf

 

Kindly note that you as a Donner have to collect receipts from non profit if you make a donation and if you have to take deduction in your taxes.

 

IRS Publication 1771, Charitable Contributions- Substantiation and Disclosure Requirements, explains the federal tax law for organizations such as charities and churches that receive tax-deductible charitable contributions and for taxpayers who make contributions

 

...a donor must have a bank record or written communication from a charity for any monetary contribution before the donor can claim a charitable contribution on his/her federal income tax return

 

. ...a donor is responsible for obtaining a written acknowledgment from a charity for any single contribution of $250 or more before a donor can claim a charitable contribution on his/her federal income tax return

 

...charitable organization is required to provide a written disclosure to a donor who receives good or services in exchange for a single payment in excess of $75.

 

HAVING SAID THIS, THERE ARE TWO ISSUES INVOLVED. FIRST, IF YOU WANT TO CLAIM THIS YOUR TAXES, THE ONUS IS ON YOU TO COLLECT RECEIPTS. SECONDLY, IF THE NON PROFIT DENIES to issue the receipt, it is not legally obligated to issue receipts.

 

The publication 1771 of IRS mentions as under...

 

"A donor cannot claim a tax deduction for any single contribution of $250 or more unless the donor obtains a contemporaneous, written acknowledgment of the contribution from the recipient organization. An organization that does not acknowledge a contribution incurs no penalty; but, without a written acknowledgment, the donor cannot claim the tax deduction. Although it is a donors responsibility to obtain a written acknowledgment, an organization can assist a donor by providing a timely, written statement."

 

I am sorry I might not have told you what you must have expected from me. I am sorry for this. I hope this helps...

 

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Warm Regards...