FundSvcs Community

I would love to see examples if you are able to share more specific details.

IRS Publication 1771 requires us to list each benefit and its estimated value on the receipt. Most organizations then state the net deductible amount, but you can also use a statement that the deduction is limited to the difference between the amount paid and the value of benefits received.

This generally works for most QPQ scenarios. However, when a gift results in numerous benefits (which are supposed to be itemized), some organizations get a bit creative. For example, a receipt might state:

Thank you for your $1,000 contribution, for which you received the benefit of participating in our golf tournament. The combined value of those benefits, described in detail at NGSGolfTournament.org/Benefits, is $975. Therefore, your tax-deductible amount is $25.

John

PS

Your last bullet, suggesting you tell donors to "go figure it out" ;-), was eliminated as a viable option in 1996 when the IRS issued the Final Substantiation Regulations. In fact, the scuttlebutt is that it was because charities were telling donors to "go figure it out" that the IRS issued the new guidance - primarily because very few donors were doing that, claiming a full deduction! Hence, the "new" (now thirty years old) requirement for nonprofit organizations to provide details on these benefits to our donors.

John and Isaac,

Thanks so much for the supporting details.

If others are following different practices please let me know. I will be sharing the guidelines as well as examples with our leadership team.

Karen