Tax Tip – Nonprofit Acknowledgment of Donations

Reminder to Nonprofits:

• You are required to acknowledge all gifts of cash or property valued in excess of $250.00
• This includes “in-kind” donations, such as donations of paper or supplies
• Do not acknowledge (for tax purposes) donations of labor – donation of services by the donor is not tax-deductible
• You are also required to note if the benefit received by the donor in exchange for the donation exceeds $75.00
• It is a good idea and good practice to acknowledge ALL donations (exception – small cash or change donations in “tip jars” or other collections of cash)

[Source:  IRS Publication 1771]