The Online Privacy Protection Act of 2003 (codified in Cal. Bus. Code Secs. 22575-22579), made operative as of July 1, 2004 (and amended in 2013), requires an owner of a commercial website or online service (“operator”) that collects personally identifiable information through the internet about individual California resident consumers...
Substantiation – Donor’s Requirements
Contributions of Less Than $250:If contribution of money, donor must keep proper records: (1) canceled check; (2) receipt; or (3) reliable written record (including name of donee, date of contribution, amount of contribution). Sec. 1.170A-13(a). If contribution of property, donor must maintain a receipt from donee showing the following...
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...
Valuation of Contribution Property
Valuation: Fair market value ("FMV") = price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts. Sec. 1.170A-1(c)(2). Contribution of Property Placed in Trust: No deduction...
Panel on the Nonprofit Sector – Final Report
The Panel on the Nonprofit Sector presented its Final Report to Senate Finance Committee Chairman Sen. Charles Grassley and Ranking Member Sen. Max Baucus on June 22, 2005. The report recommends more than 120 actions to be taken by Congress, the Internal Revenue Service and charitable organizations in order...
Percentage Limitations on the Charitable Contribution Deduction
Individual’s charitable contribution to a public charity The charitable contribution deduction (“CCD”) for a contribution of money (or ordinary income or short-term capital gain property) to a Sec. 170(b)(1)(A) organization (e.g., public charity, operating foundation, distributing foundation) is limited to 50% of the individual’s “contribution base” (defined as AGI...
Value Reduction Rules for a Contribution of Property Under IRC Sec. 170(e)(1)
General rule – the amount of the deduction is determined by the FMV of the property at the time of the contribution. Reg. Sec. 1.170A-1(c)(1). This amount is reduced by the amount of gain which would not have been long-term capital gain if such property had been sold by...
Definition of “Gift” and the Charitable Contribution Deduction
Gifts A gift is a transfer that (1) is voluntary, and (2) is motivated by a "detached and disinterested generosity." Commissioner v. Duberstein, 363 U.S. 278, 285 (1960). "Where consideration in the form of substantial privileges or benefits is received in connection with payments by patrons of fund-raising activities,...
Nonprofits Under a Microscope – June 7, 2005
Geralyne Mahoney of Burr, Pilger & Mayer LLP presented a program at the firm’s San Francisco offices on the recent federal scrutiny of nonprofit organizations and the response from the nonprofit sector. The following links serve as an outline of the discussion: Learning from Sarbanes-Oxley – A Checklist for...
“New Opportunities for Fundraising and Financial Management” – June 2, 2005
For those who attended the panel discussion on financial management hosted by Internet Securities on June 2, 2005, I thank you for your attendance and include the following supplemental information for your convenience: Best practices in financial management. We discussed having financial policies governing matters such as internal control...
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