A. The responsibility for obtaining substantiation of donations of $250.00 or more rests with the donor, who must request it from the charity. The charity is not required to report this information to the IRS on behalf of donors. However, charities that fail to provide this substantiation to its donors run an even bigger risk - loss of donors, who don't get the substantiation they need to take qualified deductions.
B. It's good practice to do the following:
- Always provide written acknowledgments of all cash gifts (regardless of amount) and of all gifts of property (regardless of what the charity thinks the items are worth).
- Always include in all solicitation materials the estimated value of goods and services provided by the charity to the donor (unless the value is insubstantial). But note that even if the solicitation properly discloses the benefit, the $250-plus donor will still need a separate written acknowledgment of the contribution.
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Copyright 2001 Pro Bono Partnership
