Treasurers Notes for the Feast of 'Alá'/Loftiness
Children and Youth newsletters

For In-Kind Donations

If your community is hosting a fundraiser or otherwise receiving in-kind donations, the following are some items to keep in mind:

1.  When receiving items for auction the donor’s receipt should only contain a description of the item or items donated. It is up to the donor to value the items for tax purposes. If the treasurer puts a value on the receipt and the IRS disagrees, then the Local Spiritual Assembly becomes liable for the taxes due and a fine.

2. The treasurer can put a value on a receipt for in-kind contributions when the value can be fixed by a receipt for items purchased. An example of this is giving an individual a receipt for Feast refreshments based on a receipt showing the items purchased from a local grocer.

3.  When receipting items purchased at an auction or goods or services received at a fundraiser, the fair market value of the items, goods or services must be deducted from the total received to determine the charitable contribution.

4. If an in-kind contribution is valued at over $5,000 the IRS has special rules regarding documentation and valuation of the tax deduction for the contributed item. If you receive a high value item, please go to the IRS website (www.irs.gov) to review these rules.

5. The value of time contributed by an individual, no matter how well documented the value of that time might be, cannot be treated as a charitable contribution by the contributor.

6. Every receipt should have the following:(a) The name of the donor; (b) The date of the contribution; (c) A unique receipt number; (d) The name of the charitable organization receiving the funds; (e) The name or names of the Funds receiving the contribution and the amounts going to each Fund; (f) If any portion of the funds received are destined for use outside the United States, then the donor must give the US charitable organization authority to override the earmarking in order for the donation to be tax-deductible. This is done by the donor saying it is my “wish, hope and desire” that this contribution be sent to (name funds outside the US); (g) Treasurer’s signature.

*for further information contact the Office of the Treasurer at finance@usbnc.org

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