Important Year-End Information for Nonprofits

Important information to keep in mind with end of the year donations…

2012 End of Year Donations

The IRS’s basic rule is that a gift must be “delivered” to the charity by 12/31. Cash and checks must be handed over to the organization by 12/31 if delivered in person or if sent using a private service like FedEx or UPS. If the donation is mailed through the US Post Office, it must have a postmark of 12/31. The organization will receive it after 12/31, but that is ok because the donor relinquished control (the IRS’s baseline threshold for determining a gift date) on the date s/he put the donation in the mail on or before 12/31. Credit card gifts must be “fully processed,” i.e., approved by the credit card merchant, for the gift to be considered “delivered” by the due date.

The Association of Fundraising Professionals also provides useful information on their website, Wrapping Up 2012: Important Tax Reminders for U.S. Nonprofit Professionals.

Donation Thank You Letters
During November and December, nonprofit organizations receive the majority of their philanthropic donations. It is important that they thank their donors and acknowledge the donation in a way that allows the donor the benefit of a tax deduction. In order to comply with the IRS, nonprofits need to include in their thank you letter the name of the organization, the date of the contribution, the amount of the contribution and a statement regarding whether or not goods or services were received for making the donation. Here is a link to an IRS article titled Eight Tips for Deducting Charitable Contributions.

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About Rollins Edyth Bush Institute

The Edyth Bush Institute for Philanthropy & Nonprofit Leadership at Rollins College was established to strengthen the impact, effectiveness, and leadership of nonprofit and philanthropic organizations through education and management assistance.
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One Response to Important Year-End Information for Nonprofits

  1. Reblogged this on Jewish Family Services and commented:
    We just wanted to share this notice with our JFS family.

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