When "Gift Receipts" Are Required For Donors:

Providing donors with proper receipts is not only good practice but
frequently required to enable donors to deduct the contributions on
their income tax filings. While written receipts are required for
gifts of $ 75 or more, it's a good idea to provide a receipt or
acknowledgment for all donations.

Receipts should include:

1. Name of the organization to which the donation was made and its
tax-exempt status (i.e. "a 501(c)(3) charitable and educational
organization");

2. Date the donation is made;

3. Amount of the donation; and

4. Statement re whether anything of value was received in return for
the contribution.

Unremimbursed Expenses: Volunteers and others may deduct expenses
they incur to aid an organization. To deduct car expenses written
records of the mileage driven for charitable purposes must be kept,
along with the date driven and the name of the group for which the
driving was conducted. If the donor opts to use actual auto expenses
instead of the standard mileage deduction, the operating expenses
must also be recorded. For other out-of-pocket expenses records to
prove the amounts donated should be kept. In all cases, an
acknowledgment from the nonprofit group that describes the services
provided and the value of the expenses donated should be written.

What You Can't Deduct: The IRS does not allow individuals to take
charitable deductions for the value of their time or services.

Organization Records: Nonprofit groups should keep records of all
donors and donations received. Generally, only the names and
addresses of only the largest donors must be included on a group's
annual return (i.e., IRS Form 990). Investing in a good software
package to track all donations is a good idea.

For more tips on legal issues affecting nonprofits, visit
http://www.nonprofitlaw.com.