For instance, if your donor gave your charity new computers, your description could say “The donor John Doe gave four desktop computers. The computers are brand new this year. " You should also include the brand and type of computers. If the donation is a vehicle, you must include the VIN number. [5] X Research source
For instance, if someone donated money and in return, she attended a charity dinner, that is considered goods or services. In that case, you need to provide a description of what she received and approximately how much those goods or services are worth. [7] X Research source However, if someone just gave computers and didn’t get anything in return, that means he did it purely for donation sake. In that case, you need to state that the donor did not receive goods or services in return for the donation. [8] X Research source Some goods are considered insubstantial and do not qualify as good or services. The IRS has specific laws about such items, but in general, items such as cheap pens or mugs with your charity’s logo on them do not count as goods or services that must be declared. [9] X Research source If the only benefits received are intangible and of a religious nature, you need to make a statement relaying that information. [10] X Research source
If the vehicle is sold, you’ll need the date the vehicle was sold, as well as the gross profits you made from the sale. You’ll also need to declare that you sold the vehicle under an arm’s length transaction that was made between two unrelated parties. Finally, you need to tell the donor that the deduction she takes on her taxes cannot be more than the gross profits you made from the sale. [12] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source If you keep the vehicle, you’ll need to state that you intend to keep the vehicle to use for an extended period of time, as well as how you plan to use it. The IRS calls this “significant intervening use,” and it means that you plan to use the vehicle extensively when it is donated. You’ll also need to say how long you will use it and certify that you will not sell the vehicle before the date you state. [13] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
For instance, Virginia nonprofits are required to state that the donor can receive a financial statement about the nonprofit from the State Office of Consumer Affairs in the Department of Agriculture and Consumer Services, P. O. Box 1163, Richmond, VA 23218. [15] X Research source
Donors can make claims on their taxes for donations under $250 with a bank statement to show they made the donation. [19] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source
