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Tax Tip – Nonprofit Acknowledgment of Donations

by Miriam - June 2nd, 2012.
Filed under: Nonprofit, Tax Tips.

Reminder to Nonprofits:

  • You are required to acknowledge all gifts of cash or property valued in excess of $250.00
  • This includes “in-kind” donations, such as donations of paper or supplies
  • Do not acknowledge (for tax purposes) donations of labor – donation of services by the donor is not tax-deductible
  • You are also required to note if the benefit received by the donor in exchange for the donation exceeds $75.00
  • It is a good idea and good practice to acknowledge ALL donations (exception – small cash or change donations in “tip jars” or other collections of cash)

[Source:  IRS Publication 1771]

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