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Inspired by PT's thread re: charity donations, I'd like to share my day job knowledge with you (honestly should have done this like... pre winter holidays, but my brain cells were elsewhere).
I want to first put out there that I'm not a tax accountant. https://twitter.com/pleasantlytwstd/status/1346864077595955202
I want to first put out there that I'm not a tax accountant. https://twitter.com/pleasantlytwstd/status/1346864077595955202
This also is not legal or financial advice. Merely my knowledge & it might be helpful for you to support non-profits this year given *gestures wildly*
I'm not really sure how much of this will be the same across every npo, but I want to highlight the following (USA only):
I'm not really sure how much of this will be the same across every npo, but I want to highlight the following (USA only):
- most gifts you make to a non-profit org (NPO) is tax deductible, as long as you aren't receiving any goods/benefits/services that have a monetary value attached to them
- donations to npos in an amount under $250 USD will usually get you either a generic written correspondence,
- donations to npos in an amount under $250 USD will usually get you either a generic written correspondence,
or will get you an electronic correspondence [depending if your gift was check/credit/debit vs. online] acknowledging your gift.
These roughly generic letters or e-acks are considered sufficient evidence that if you're audited by the IRS, you can hand them in as proof.
These roughly generic letters or e-acks are considered sufficient evidence that if you're audited by the IRS, you can hand them in as proof.
- gifts of $250 or more, by law, require a "live" signature from that npo's philanthropy or development office. This means that it's part of someone's job description @ that npo to sign these letters. This is when the IRS pays attention to how much you're giving to charity.
- at my job in particular, we keep donor records for anyone who makes a gift of $1k or more. this serves several purposes: cultivation of donors to fund specialized projects, operating expenses, equipment, etc., and to keep a paper trail of a donor's gift-giving.
- What if I have stuff to give, like equipment or books I don't use anymore? It's always good to check with the npo about their specific needs *before* dropping stuff off. The items you give do have a monetary value assigned to them by the npo, usually the going rate (depending
on the wear/tear these items had from when you use them). The npo then gives you a Gift in Kind letter. it acknowledges while you didn't give physical cash, you did give them something that had the same value as X amount of cash. This is also your proof of donation.
- A lot of donors wait until the last possible moment to make gifts to npos. this is rocks and also stinks at the same time. Npos have folx who also like to spend winter holidays with their families. Consider giving your gifts earlier than Thanksgiving.
- What happens if you lose your receipt? No biggie, you just need to tell us ASAP so we can adjust our workload to get your dupe. Please don't wait until April 13th to ask for this. You'll not get your ack in time.
- How can I best help with my gift? This is a great question!
- How can I best help with my gift? This is a great question!
- When in doubt, make it out to the organization's operating expenses, or something called the Annual Fund. The Annual Fund is the org's lifeblood. It's not restricted to a specific project, which means that the npo can use it for whatever is their most critical need.
- Are you super passionate about one aspect of their work? Cool! You can ask the npo to "restrict" your gift to a certain project. However, your gift loses its fluidity - if an emergency crops up at the npo, like a roof caving in and needs repairs... they can't use your gift for
anything else than what you specified it for, because you've only given them consent for the project you agreed to fund.
- NPOs are required by their accountants [usually] to have end-of-year money in within the 1st week of January, usually to prepare for audits in Feb or March
- NPOs are required by their accountants [usually] to have end-of-year money in within the 1st week of January, usually to prepare for audits in Feb or March
- NPOs are required by the IRS to acknowledge your gifts for the previous by January 31st, or they get a big hefty fine and end up on the spit-list by the IRS. NPOs take this v. seriously, because this could jeopardize their 501c3 (the v. thing that makes them a npo)
I made the (mistake) of taking melatonin in order for me to go to bed tonight because I've been in fight/flight mode, but I think I covered the things I felt were most important to clarify in addition to what PT already mentioned in her brilliant thread.
If anyone has questions, I'll do my best to answer them in the morning, I'm sorry I couldn't give you all this thread sooner, my anxiety wouldn't let me do it sooner.
