Example #1 - donation of money, no benefit to the donor:
Don Donor donates $500.00 to the ABC Charity. ABC's acknowledgement letter should contain language similar to the following:
Dear Mr. Donor:
Thank you for your donation of $500.00. No goods or services were provided to you in return for your donation. Therefore, the full amount of your contribution is deductible for Federal income tax purposes.
Sincerely, ABC Charity
Example #2 - donation of property, no benefit to the donor:
Philomena Philanthropist donates a computer and software to ABC. ABC's acknowledgement letter should contain language similar to the following:
Dear Ms. Philanthropist:
Thank you for your donation of: a Micron computer, model #12345; keyboard; 15" monitor; mouse; and EZ Plan financial planning software Version 2.0. No goods or services were provided to you in return for your donation. Therefore, the full amount of your contribution is deductible for Federal income tax purposes.
Sincerely, ABC Charity
Example #3 - donation where the donor receives a benefit:
Glen Giver buys a ticket to ABC's annual charity dinner. The cost of the ticket is $200.00, and the FMV of the dinner is $75.00. ABC's acknowledgement letter should contain language similar to the following:
Dear Mr. Giver:
Thank you for the purchase of a $200.00 ticket to our Annual Dinner. The fair market value of the dinner is $75.00. Therefore, the amount of your contribution that is deductible for Federal income tax purposes is $125.00.
Sincerely, ABC Charity
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