Complacency is Not an Option
Each year tax-exempt organizations in the United States receive hundreds of millions of dollars in donations. Donors contributing to 501(c)(3) organizations are able to deduct their own contributions from their taxes, subject to IRS limitations. Recently, a higher standard deduction has been put in place through the Tax Cuts and Jobs Act. This will likely diminish the number of taxpayers and donors who itemize their deductions, making it tempting for charities to decide that receipting donations is no longer important. However, charities should continue to exercise care in receipting donations for the benefit of the donor.
Most organizations are probably familiar with how to receipt cash contributions since cash is the most common type of donation. Because of this, organizations may become complacent in receipting cash contributions and fail to properly receipt them to donors. This is not an area where an organization should become complacent because the IRS requires strict compliance with its gift substantial rules. Continue reading “Receipting Donations”