According to the IRS I must list any goods or services that a donor received in exchange for their charitable contribution. So if I hold an charitable dinner /dance and charge $100 per plate and a donor purchases an entire table of ten for $1,000, do I need to list the meals for all ten at the table on thier contribution acknowledgement letter? Are these meal considered a good or service in exchange for the donation and if so, isn't it personal benefit received, so since the donor only ate one meal of the ten, do I list one meal? Does anyone know the correct way to do this?
How do I write a charitable contribution letter to a donor from a not-for-profit
Answers
On page 9 of IRS Publication 1771 the following statement appears.
"written acknowledgment —
Detailed rules for contemporaneous
written acknowledgments are contained in Section
170(f)(8) of the Internal Revenue Code and Section 1.170A-13(f)
of the Income
set forth in Section 513(h)(2) of the Code. This information can
be found on the IRS Web site at www.irs.gov."
Hope this helps!
If the donor purchased $100 for a dinner that would cost $35 the portion of the charitable giving is the difference, $65. I would provide the figures, and let the donor’s
BTW, on many of the invites I receive, in small print on the acceptance/payment form is a line stating the "cost" of the meal/plate, etc. Thus, you've saved yourself a lot of time in providing the information up-front.
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