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  • 1.  Receipt re-issue

    Posted 02-22-2024 01:03 PM

    Hello! After issuing a tax receipt to a donor, we discovered that the funds originated from their foundation. The receipt was initially addressed to the donor, who also holds the position of VP within their foundation. Should we proceed with re-issuing the tax receipt?

    Thank you in advance for your assistance. 

    Marta 



    ------------------------------
    Marta Kostrzewa
    Director of Finance
    Pratt Institute
    mkostrze@pratt.edu
    ------------------------------


  • 2.  RE: Receipt re-issue

    Posted 02-22-2024 01:14 PM
    The foundation does not require a tax receipt, so there is no need to issue one, though an acknowledgment is a best practice. The donor should receive a communication indicating that the tax receipt previously provided was erroneous, and that they should not use it to substantiate a tax deduction, and they should instead use a receipt from the foundation to whom they originally made the gift. 


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:




    Original Message


  • 3.  RE: Receipt re-issue

    Posted 02-22-2024 01:24 PM
    Well, a foundation does not qualify for charitable tax deductions. So they don't actually need a receipt.

    But I would issue a strong letter to the individual, noting your error, and requiring them to destroy the receipt and not claim a deduction.

    I would, for sure, send a nice note to the foundation apologizing for the delay in thanking them.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 4.  RE: Receipt re-issue

    Posted 02-22-2024 01:41 PM

    Okay, thank you so much.  Is this because foundations are exempt from federal taxes?



    ------------------------------
    Marta Kostrzewa
    Director of Finance
    Pratt Institute
    mkostrze@pratt.edu
    ------------------------------

    Original Message


  • 5.  RE: Receipt re-issue

    Posted 02-22-2024 02:06 PM
    Sort of - tax deductions only reduce tax liability for personal income and regular business income (if a corporation makes a donation). Foundations are exempt from those taxes. There are other Federal taxes that a Foundation is required to pay, like social security tax or UBIT, but donations are not deductible against those tax liabilities. 


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:





    Original Message


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