Reporting and Disclosure of Contributions – Charity’s Requirements

For Disposition of Charitable Deduction Property Within 2 Years of the Contribution Date:

IRS Form 8282 must be filed within 125 days after the date of disposition (i.e., sale, exchange, consumption or other disposition) unless:  (1) at the time the donee charity signed the donor’s Appraisal Summary (Section B of Form 8283, Noncash Charitable Contributions), the donor signed a statement on the Form that the appraised value of the specific item was not more than $500; or (2) the item is consumed or distributed, without consideration, in fulfilling the donee charity’s exempt purpose or function.

For Quid Pro Quo Contributions In Excess of $75:

If a charity receives a quid pro quo contribution (i.e., generally, payment made partly as a contribution and partly in consideration for goods or services provided by the charity), the charity must provide a written statement that (1) informs the donor that the amount of the contribution that is deductible for federal income tax purposes is limited to the excess of the amount of the contribution over the value of the goods or services provided by the charity; and (2) provide the donor with a good faith estimate of the value of such goods or services.  IRC Sec. 6115.  An organization failing to meet such disclosure requirements (without reasonable cause) is subject to a penalty of $10 for each applicable contribution (capped at $5,000 for each particular fundraising event or mailing).  IRC Sec. 6714.