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I have a 501(c)3. We received donations in 2017. One for…

I have a 501(c)3...

I have a 501(c)3. We received donations in 2017. One for $2500 and one for $1000. Do I need to file any kind of form to give back to these companies that gave us these donations?

Accountant's Assistant: What state are you in? It matters because laws vary by location.

Arizona

Accountant's Assistant: Has anything been filed or reported?

THis is our first year. I am going to file our 990 but I didn't know if there was a form that I need to send to those companies that gave us those donations

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Answered in 1 hour by:
3/12/2018
James Daloisio
James Daloisio, Tax Attorney
Category: Tax
Satisfied Customers: 724
Experience: 24 years of continuing education and experience.
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Hi, my name is ***** ***** welcome to Just Answer.

Your organization is not required to acknowledge donations unless you receive a donation for more than $75 and in return you provide something that is worth less than the donation (called "quid pro quo" donations); however, the donor cannot deduct their contribution unless you provide them with an acknowledgement letter for each donation of more than $250.00.

Acknowledgement letters are supposed to be "contemporaneous" with the donation, but usually are sent no later than January 31st of the following year.

It isn’t necessary to include either the donor’s Social Security number or tax identification number on the acknowledgment.

There is no special form to use. The IRS wants the following information in the acknowledgement letter:

1. the name of organization;

2. the amount of cash contribution;

3. a description (but not the value) of non-cash contribution;

4. a statement that no goods or services were provided by the organization in return for the contribution, if that was the case;

5. a description and good faith estimate of the value of goods or services, if any, that an organization provided in return for the contribution;

6. a statement that goods or services, if any, that an organization provided in return for the contribution consisted entirely of intangible religious benefits. If that was the case, it isn’t necessary to include either the donor’s Social Security number or tax identification number on the acknowledgment.

Here are a couple of recommended formats:

“Thank you for your cash contribution of $2,500 that (organization’s name) received on December 12, 2017. No goods or services were provided in exchange for your contribution.”

“Thank you for your cash contribution of $1,000 that (organization’s name) received on May 6, 2017. In exchange for your contribution, we gave you a Louis Armstrong DVD with an estimated fair market value of $40.”

That's it. There is also no mandatory method for delivering an acknowledgement. You send it by U.S. mail or by e-mail. Being that you haven't sent anything out yet, I'd send an email and follow up with a hard copy in the mail.

Hope that answered your question. If so, please don't forget to rate this answer. You can always return here with follow up questions on this topic at no additional charge. Thank you for using Just Answer.

James Daloisio
James Daloisio, Tax Attorney
Category: Tax
Satisfied Customers: 724
Experience: 24 years of continuing education and experience.
Verified
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