Churches sending acknowledgement letters to their donors should remember the following substantiation requirements held by the IRS. Please reference IRS Publication 1771 for more information on record keeping rules and what to include in written acknowledgement to donors. This is a very helpful tax resource for churches and individuals alike.
Written acknowledgments must include:
- Name of organization
- Amount of cash contribution
- Statement that no goods or services were provided by the organization in return for the contribution, if that was the case
- Description and good faith estimate of the value of goods or services, if any, that an organization provided in return for the contribution
- Statement that goods or services, if any, that an organization provided in return for the contribution consisted entirely of intangible religious benefits, if that was the case
Written acknowledgements must be received by the donor by the earlier of the date they file their return, or the due date of the return.