Giving/Receipting Issues
By Tim West | December 6, 2011
Top 10 Year-end Giving/Receipting Issues
1. If a single gift of $250 or more is given by check, a gift acknowledgement must be obtained by the donor to qualify the gift as a charitable deduction.
2. A donor must obtain a gift acknowledgment for any amount of currency to qualify the gift as a charitable deduction.
3. Donors providing out-of-pocket expenses relating to performing services for a church or charity must obtain a proper acknowledgment for gifts of $250 or more.
4. Givers need a charitable gift acknowledgment on or before the due date of their tax return (including extensions) or the date their tax return is filed, whichever is earlier.
5. For purposes of the gift acknowledgment, the donor is generally the person or entity named on the check/bank draft, or the credit card holder.
6. If a check is mailed to a church or charity, the date of the postmark generally determines the year in which the gift is deductible.
7. All gift acknowledgments must include a statement that no goods or services were provided in exchange for a gift (or the fair market value of the goods or services provided must be identified).
8. The fair market value of donated property should not be reflected on a gift acknowledgement by a church or charity.
9. When a gift of over $75 is received by a church or charity and goods or services are received by the donor in exchange, the church or charity must inform the donor of the limitation of the tax deductibility of the payment and must provide a good faith estimate of the fair market value of the goods or services provided.
10. There is generally no basis to refund a charitable contribution to a donor.