Charitable Contribution Disclosure Requirements: A Guide to Compliance With IRS Rules and Regulations

Nonprofits Talk

Virtually every nonprofit in the United States conducts fundraising activities in one way or another. These activities can include in-person solicitations, mail solicitations, phone calls, or special fundraising events. Charitable organizations exempt under section 501(c)(3) must understand the IRS regulations surrounding substantiation and disclosure requirements for charitable contributions in order to protect the tax-deductible nature of the donation as well as protect themselves from IRS penalties.

The tax regulations put the burden of obtaining the proper written acknowledgement of a contribution on the donor, not on the charity itself. An organization that does not acknowledge a contribution (subject to exceptions discussed below) incurs no penalty, but the donor will not be able to claim a tax-deduction. This could lead to unhappy donors who may choose to move their donations to other organizations in the future. It is critical for all charitable organizations to become familiar with and comply with the…

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