The New England Not-for-Profit Accounting Advisor | charitable donations

Developments That Could Affect 2020 Charitable Giving Results

Posted by Scott Goldberg on Wed, Dec 2, 2020 @ 09:30 AM

As disruptive as the year has been for not-for-profit organizations, 2020 might end up being a better year for charitable giving. The potential for higher tax rates and decreased exemptions from estate and gift taxes under a new presidential administration may lead many high-net-worth individuals to increase charitable giving during 2020. At the same time, individual and corporate donors can benefit from temporary charitable giving incentives in 2020 that are available under recent tax law changes.

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Topics: tax returns, individual tax, not-for-profit, charitable donations, IRS, NFP, S Corporation, charitable giving, C Corporation, Charitable Contribution Deductions, COVID-19, CARES Act, PPP, charitable contributions, high-net-worth, AGI

6 Tips for Building a Resilient Charitable Contribution Plan for 2020

Posted by Amy O’Loughlin on Wed, Nov 20, 2019 @ 01:11 PM

The landscape has shifted for charitable giving. As individuals feel the effect of the Tax Cut and Jobs Act (TCJA) of 2017 on their personal tax situation, charities making requests for donations will need to respond in kind. Development departments are having to adjust their “ask” to meet the challenges brought on by the reduced tax incentive to make charitable gifts. Donors often respond with their hearts and minds when giving to their favorite causes, but financial reality will play an important role when deciding where to spend their limited charitable dollars.

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Topics: charitable donations, Not-for-Profits, nonprofit, benchmarking, charitable giving, Charitable contribution planning, TCJA, donors, artificial intelligence

A Friendly Reminder for Not-For-Profit Organizations and their Donors

Posted by Michelle Sylvia Spriggs on Tue, Aug 22, 2017 @ 06:06 PM

Donations to not-for-profit organizations are normally a win-win for organizations and their donors. Organizations receive gifts to help support their mission, and the donor receives a tax write-off. But not-for-profit organizations and donors must ensure they are in compliance with IRS substantiation requirements. The IRS requires that in order for a donor to take a deduction greater than $250, he or she must have a contemporaneous written acknowledgment (CWA) of the donation from the not-for-profit organization. CWAs must include the name of the organization, the value of the donation (if cash), a description of the donation (if non-cash), whether goods or services were provided in exchange for donation, and, if services were provided, a good faith estimate of the value of those services. If the value of the gift exceeds $5,000, in most cases, a qualified appraisal must be obtained in addition to the CWA.

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Topics: charitable donations, Not-for-Profits, nonprofit, In-Kind Donations, Donations

Questions to Ask Before Accepting In-Kind Donations

Posted by Scott Goldberg on Tue, Mar 28, 2017 @ 09:06 AM

Not all donations come in the form of cash. Donors may want to contribute financial assets, real estate, clothing and artwork to help your not-for-profit organization further its mission. If your organization accepts these in-kind donations, it should have clear policies and reporting measures in place.

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Topics: charitable donations, In-Kind Donations, Donations

Charitable Auctions: Managing Expectations Brings Positive Results

Posted by Charlie Ciccone on Mon, Oct 27, 2014 @ 09:34 AM

Author: Charles Ciccone

Charitable auctions – live, silent, or online – provide an opportunity to introduce your organization’s mission to the public and generate greater support, as well as attract donations of goods and services and increase revenue. It is also an easy way for a charity to convert a donor’s non-cash property to cash. But, auctions of all varieties bring compliance and risk management issues. For instance, organizations are responsible for recording all fundraising transactions and reporting on their activities – and those that fail to adequately comply may be subject to sizable IRS penalties.

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Topics: charitable donations, auctions

Best Practices for Car Donation Charitable Giving Programs

Posted by Brian R. Jett on Wed, Jul 2, 2014 @ 10:10 AM

In an effort to further their charitable mission, not-for-profit organizations routinely seek contributions from the communities they serve. To this end, many not-for-profit organizations have adopted vehicle donation programs. While these programs—usually operated in association with a for-profit entity (often a car dealer) that coordinates the donations—are often a boon for charities, they are not without risk.

To maximize the effectiveness of car (and truck, boat, RV and other vehicle) donation programs, as well as help potential donors get the most out of their charitable intent, not-for-profits should adhere to IRS guidance and industry best practices. First and foremost, not-for-profits should have in place a formal, written donation policy that outlines its approach to non-cash charitable contributions. And second, the charity should be mindful of the tax benefits to their donors in order to maximize their potential charitable contributions.

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Topics: charitable donations

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