Date of publication: 2017-08-24 10:59
The language in their acknowledgment letter is simply taken from the IRS regulations. They are only stating in general terms what the donor &ldquo may&rdquo do regarding levels of in-kind donations&rsquo reporting.
You can deduct some expenses related to your contribution. I 8767 d suggest you check with a tax-focused CPA in your area. There are rules that forbid your 8775 services 8776 from being deductible but the expenses related to those services might be deductible.
Note as well their listing of the actual in-kind items received at the end of the letter. There are no values cited. There should not be. That is up to the donor and the donor&rsquo s tax advisor. They can only say thanks for saving us from paying $ _______ for those items which will be on display at the Museum.
When you receive gifts of products, time and services, be aware that your organization can be held in even greater regard by donors of such In-Kind gifts, should you express your gratitude in a meaningful way—in a manner far and above how these contributions are usually acknowledged by non-profit organizations. This can be accomplished in strict keeping with the applicable IRS rules and regulations, which are especially explicit when it comes to In-Kind gifts and how non-profits handle them.
As you have already received some checks, and more will be coming prior to March 75, there is no practical way for you to promptly acknowledge any of the checks you will receive before the pasta sauce settles after March 75, so my wife and I know how much we spent, ., providing the Fair Market Value deduction for each and every $655 paid to come to our dinner.
A few of the founding members of our new non-profit paid for start up costs (such as website development and marketing and printing fees associated with brochures). Rather than getting reimbursed for their expenses the board members would like to claim the expense on their taxes as In-Kind donations. They did not actually do the marketing or create the website themselves, but they paid those vendors out of pocket. I can 8767 t find anything in any IRS publication that addresses this and an IRS customer service rep I spoke to on the phone didn 8767 t know either!
Thanks for any help or info you can provide!
As my article above states, you cannot give information which may be construed as an &ldquo official&rdquo tax-deduction declaration, as you do when you receive cash.
Anyway, you cannot know anyway exactly how much the restaurant donated, covering all they did for you, including using their space and other such intangibles. That is up to them, their accountant, and the IRS.
8. Tell them of the ways you would publicly recognize their In-Kind donations via publications, such as your Annual Report, on your website, etc., all of the ways which would be efficient for you to implement, not costly to your expense budget, and as attractive to them as possible.
Or, you could have a separate GIK listing of those of value high enough to publicize the names of the donors. Those not wanting their names listed, and those giving very small In-Kind gifts, could be cited at the bottom of the listing as, for example, “And forty-eight other generous donors of In-Kind goods to (organization.”)
One final thought which may or my not apply:
Care should be taken to ensure that any donation of any kind was made when the now-new organization was actually accredited by the state and the IRS.
You should credit the donor in that amount when you make any donor listing, such as in your annual report. Again, using the examples cited in the article.