The proof is in documenting donor gifts

Description

Abstract: If a nonprofit is not complying with the IRS requirements for acknowledging charitable contributions from its donors, it may find the IRS disallowing those donors’ deductions. This article looks at two recent U.S. Tax Court rulings that amplify this point. In one, a couple’s deduction was disallowed because they hadn’t received a timely notification that they hadn’t received any goods or services in exchange for their contributions. In the other, an experienced real property appraiser was unable to deduct a property donation because he’d appraised the gift himself, instead of getting an independent appraisal. The article goes on to review the IRS “substantiation rules.”