Gift Acknowledgements, Does Yours Have All the Right Stuff?
Whether you’re a church or a community based charity, be aware that the IRS has been taking a closer look at average tax payers and their deduction claims. In fact, in two recent tax court rulings, the IRS was found to be justified in denying donors who did not have the right paperwork, the right to claim deductions. So make sure your acknowledgements state the amount of the donation (cash or noncash) and whether the charity provided any goods or services in exchange for any portion of the gift. And if it is property you’re accepting, make sure that for both yours and the donor’s sake, the donor provides a qualified appraisal!