Minimizing Your Taxes and Managing Your Complex Affairs

Tax Tips, Finance Tips, Fun Events

Tips for Individuals, Businesses and Charities. Fun Events.

Charities Make Sure Your Donation Receipts Protect Your Donors

It’s important that your charity provide information for your donors to receive a tax deduction.

 In one case (Durden TC Memo 2012-140) the Tax Court disallowed $22,000 in donations to the donor’s church since (a)  a statement that no goods or services were provided to them in exchange for their contributions was missing from their receipt and (b) the receipt was not received timely.


A written acknowledgment must include the following:

 (1) The exact amount of cash or a description of any property other than cash contributed.

(2) Whether the donee organization provided any goods or services in consideration, in whole or in part,

for any cash or property received.

(3) A description and good faith estimate of the value of any such goods or services provided or, if those goods or services consist solely of intangible religious benefits, a statement to that effect.


I recommend putting the organization’s tax ID number and representation that it is a 501(c)(3).

I also recommend donor receipts be issued within a week as the charitable gift letter serves as a thank you for their contribution.

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