As a 501(c)(3) organization, you’re required to send written acknowledgement of all donations valued at $250 or more. Here’s a refresher about what needs to be included in the recognition letter:
- Name of the organization;
- Amount of cash contribution;
- Description (but not value) of non-cash contribution;
- Statement that no goods or services were provided by the organization, if that is the case;
- Description and good faith estimate of the value of goods or services, if any, that organization provided in return for the contribution; and
- Statement that goods or services, if any, that the organization provided in return for the contribution consisted entirely of intangible religious benefits, if that was the case.
Staying on top of these details will help your organization stay in the clear regarding IRS regulations.