Bloomerang Thank Yous Dec 2023.pdf

The How, What, When,
Where and Why of Donor
Thank You’s
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WHAT CHARITIES ARE REQUIRED TO
DO WHEN RECEIVING DONATIONS
AGENDA
 OVERVIEW : ALL ABOUT DONOR ACKNOWLEDGEMENTS
 PURE DONATIONS (NOTHING GIVEN TO DONOR)
 QUID PRO QUO DONATIONS (DONOR RECEIVED BENEFIT)
 THE ACKNOWLEDGEMENT LETTER ITSELF
- WHAT TO INCLUDE
- WHEN TO SEND
- PENALTIES
 GETTING THE LETTER FROM QUICKBOOKS

A FEW POINTS
 PURPOSE OF WEBINAR:
 REQUIREMENTS FOR CHARITIES WHEN
RECEIVING DONATIONS
 WHY, WHEN ,WHAT, HOW… DONOR
ACKNOWLEDGEMENTS
 GETTING THEM OUT OF QUICKBOOKS
 TYPE OF DONATION DOESN’T MATTER:
- MONEY
- PAYROLL DEDUCTION
- IN-KIND DONATIONS
- UNREIMBURSED EXPENSES PAID BY DONOR DIRECTLY
.THE RULES ABOUT DONOR ACKNOWLEDGEMENTS ARE BASICALLY THE SAME
REGARDLESS OF THE TYPE OF DONATION

THE WHY OF DONOR
ACKNOWLEDGEMENTS
 WHAT PROBLEM ARE DONOR ACKNOWLEDGMENTS
TRYING TO SOLVE FOR:
- HELP DONORS COMPLY WITH IRS RULES ON WHEN
DONATIONS CAN BE WRITTEN OFF
 THE OVERALL RULE:
 DONATIONS CAN ONLY BE WRITTEN OFF IF
GIVEN TO A REAL CHARITY (501-C-3)
DIDN’T GET SOMETHING BACK FOR DONATION
IF THEY GOT STUFF BACK – THAT PART’S NOT
A DONATION BUT MORE LIKE A SALE
TO THE EXTENT THE DONOR DIDN’T GET ANYTHING
BACK – THAT’S THE DEDUCTIBLE PART

KEEP THIS IN YOUR HEAD
“THE ONLY PART OF A DONATION THAT IS DEDUCTIBLE
IS THE PART THEY DIDN’T GET ANYTHING BACK FOR…
…UNLESS THE THING THEY GOT IN RETURN WAS
NO BIG DEAL AND NOT WHY THEY GAVE”

WHEN DO YOU NEED AN ACKNOWLEDGEMENT:
PURE
DONATION
PURE MONETARY DONATION

PURE
DONATION
(NOTHING GIVEN
IN RETURN)

PURE
DONATION
(NOTHING GIVEN
IN RETURN)
THE DONOR (FOR IRS)
*MUST ALWAYS HAVE
SOME PROOF
THE CHARITY
(TO DONOR)

PURE
DONATION
(NOTHING GIVEN
IN RETURN)
THE DONOR (FOR IRS)
*MUST ALWAYS HAVE
SOME PROOF
THE CHARITY
(TO DONOR)
UP TO $249.99
(SINGLE DONATION)
$250 OR MORE
(SINGLE DONATION)

PURE
DONATION
(NOTHING GIVEN
IN RETURN)
THE DONOR (FOR IRS)
*MUST ALWAYS HAVE
SOME PROOF
THE CHARITY
(TO DONOR)
UP TO $249.99
(SINGLE DONATION) NOPE
$250 OR MORE
(SINGLE DONATION)

PURE
DONATION
(NOTHING GIVEN
IN RETURN)
THE DONOR (FOR IRS)
*MUST ALWAYS HAVE
SOME PROOF
THE CHARITY
(TO DONOR)
UP TO $249.99
(SINGLE DONATION)
NOPE: bank record good enough
(e.g. Canceled Check, Bank Statement,
Credit Card Statement
$250 OR MORE
(SINGLE DONATION)

PURE
DONATION
(NOTHING GIVEN
IN RETURN)
THE DONOR (FOR IRS)
*MUST ALWAYS HAVE
SOME PROOF
THE CHARITY
(TO DONOR)
UP TO $249.99
(SINGLE DONATION)
NOPE: DON’T HAVE TO
DO ANYTHING
$250 OR MORE
(SINGLE DONATION)

PURE
DONATION
(NOTHING GIVEN
IN RETURN)
THE DONOR (FOR IRS)
*MUST ALWAYS HAVE
SOME PROOF
THE CHARITY
(TO DONOR)
UP TO $249.99
(SINGLE DONATION)
DO ANYTHING
$250 OR MORE
(SINGLE DONATION)
YUP: WRITTEN ACK.
FROM CHARITY

PURE
DONATION
(NOTHING GIVEN
IN RETURN)
THE DONOR (FOR IRS)
*MUST ALWAYS HAVE
SOME PROOF
THE CHARITY
(TO DONOR)
UP TO $249.99
(SINGLE DONATION)
DO ANYTHING
$250 OR MORE
(SINGLE DONATION)
YUP: WRITTEN ACK.
FROM CHARITY
DO ANYTHING

PURE
DONATION
(NOTHING GIVEN
IN RETURN)
THE DONOR (FOR IRS)
*MUST ALWAYS HAVE
SOME PROOF
THE CHARITY
(TO DONOR)
UP TO $249.99
(SINGLE DONATION)
DO ANYTHING
$250 OR MORE
(SINGLE DONATION)
YUP: WRITTEN ACK.
FROM CHARITY
DO ANYTHING
PURE DONATION: DONOR HOLDS ALL RESPONSIBILITY

5 THINGS PURE DONATION
ACKNOWLEDGEMENTS SHOULD CONTAIN
 CHARITY NAME AND EIN #
 TAX EXEMPT STATUS
 DATE OF CONTRIBUTION
 AMOUNT OF CONTRIBUTION
 STATEMENT THAT “NO GOODS OR
SERVICES WERE PROVIDED BY THE
ORGANIZATION”

PURE DONATION WRITTEN
ACKNOWLEDGEMENT EXAMPLE
Dear Mr and Mrs. Parker,
Thank you so much for your donation on December 30, 2022 in the amount of $100.00 .
Know it will be used to continue to end this countries dependency on oil. I hope that you will
continue to support our organization in the future.
Synergy Now is proud to count you among our supporters and we wish to keep in touch with you.
Please go to our web site, www.synergynow.org, and sign up to receive our monthly newsletter.
This will be sent to you by email on the 15th of each month and will keep you up to date on the
latest activities of our organization as well as the latest developments in new energy technologies
being worked on in our country.
Thanks Again!!! We wouldn’t exist without you!!!
With Love,
Gregg S. Bossen ED
Synergy Now Inc. is an exempt organization as described in Section 501(c)(3) of the Internal Revenue Code; EIN 20-1234567.
No goods or services were provided in exchange for this contribution.

PURE DONATION WRITTEN
Thank you so much for your donation on December 30, 2022 in the amount of $100.00 .
With Love,
Gregg S. Bossen ED
VOLUNTARY
IF
PURE
DONATION

WHAT ABOUT A NONCASH CONTRIBUTION?
PRETTY MUCH SAME RULES
 DONOR ONLY NEEDS SOMETHING FROM
THE CHARITY IF THE VALUE IS > $250
 YOU AREN’T REQUIRED TO GIVE IT TO THEM
 BUT ITS GOOD TO DO IT ANYWAY
 YOU SHOULD DESCRIBE THE GIFT BUT
DO NOT VALUE IT IN THE
ACKNOWLEDGEMENT!

Thank you so much for your donation on December 30, 2022 of clothing and household items.
With Love,
Gregg S. Bossen ED
NONCASH DONATION WRITTEN

NONCASH DONATION WRITTEN
Dear Mr. and Mrs. Parker,
Thank you so much for your donation of the following items:
____________________________________________
____________________________________________
____________________________________________
____________________________________________

WHAT ABOUT IF THERE IS SOMETHING
GIVEN BACK TO DONOR?
 EXAMPLES:
 T-SHIRT
 COFFEE MUG
 MEAL AT A FUNCTION
 DISCOUNTED ENTRY
 CALLED : QUID PRO QUO DONATIONS
 MEANS DONOR RECEIVED BENEFIT IN THE FORM OF
 GOOD
 SERVICE
CHARITY MAY BE REQUIRED TO SEND
ACKNOWLEDGMENT

SOMETHING GIVEN TO DONOR (*AND NOT AN EXCEPTION)
QUID PRO
QUO
DONATION
THE DONOR (FOR IRS)
*MUST ALWAYS HAVE SOME
PROOF
THE CHARITY
(TO DONOR)
UP TO $75
(SINGLE DONATION)
$75.01 TO
$249.99 MORE
(SINGLE DONATION)
$250 OR MORE
(SINGLE DONATION)

QUID PRO
QUO
DONATION
THE DONOR (FOR IRS)
PROOF
THE CHARITY
(TO DONOR)
UP TO $75
(SINGLE DONATION)
DO ANYTHING
$75.01 TO
$249.99 MORE
(SINGLE DONATION)
$250 OR MORE
(SINGLE DONATION)

QUID PRO
QUO
DONATION
THE DONOR (FOR IRS)
PROOF
THE CHARITY
(TO DONOR)
UP TO $75
(SINGLE DONATION)
DO ANYTHING
$75.01 TO
$249.99 MORE
(SINGLE DONATION)
$250 OR MORE
(SINGLE DONATION)
YUP!

QUID PRO
QUO
DONATION
THE DONOR (FOR IRS)
PROOF
THE CHARITY
(TO DONOR)
UP TO $75
(SINGLE DONATION)
DO ANYTHING
$75.01 TO
$249.99 MORE
(SINGLE DONATION)
$250 OR MORE
(SINGLE DONATION)
YUP: WRITTEN ACK.
FROM CHARITY
YUP!

QUID PRO
QUO
DONATION
THE DONOR (FOR IRS)
PROOF
THE CHARITY
(TO DONOR)
UP TO $75
(SINGLE DONATION)
DO ANYTHING
$75.01 TO
$249.99 MORE
(SINGLE DONATION)
$250 OR MORE
(SINGLE DONATION)
YUP: WRITTEN ACK.
FROM CHARITY
YUP!
YUP!

IN SUMMARY:
WHEN DO YOU NEED TO CREATE
AN ACKNOWLEDGEMENT:
THE IRS REQUIRES A CHARITY TO SEND A WRITTEN
ACKNOWLEDGMENT ONLY WHEN ALL THE BELOW
ARE TRUE:
 A SINGLE DONATION (cash or noncash) IS GREATER
THAN $75
 SOMETHING GIVEN IN RETURN
 NOT AN EXCEPTION

POLL QUESTION 1:
A CHARITY RECEIVES A SINGLE PURE DONATION
OF $1,000,000. NOTHING IS GIVEN IN RETURN.
IS THE CHARITY REQUIRED TO SEND A WRITTEN
ACKNOWLEDGEMENT :
 (A) YES
 (B) NO

ACKNOWLEDGEMENT :
 (A) YES
 (B) NO NOTHING WAS GIVEN TO DONOR
POLL QUESTION 1:

ACKNOWLEDGEMENT :
 (A) YES
IS THE DONOR REQUIRED TO OBTAIN A WRITTEN
ACKNOWLEDGEMENT :
 (A) YES
 (B) NO
POLL QUESTION 1:

POLL QUESTION 1:
ACKNOWLEDGEMENT :
 (A) YES
ACKNOWLEDGEMENT :
 (A) YES AMOUNT IS > $250
 (B) NO

POLL QUESTION 2:
A CHARITY RECEIVES A DONATION OF $85.00. A LONG SLEEVE
T-SHIRT IS GIVEN IN RETURN. (NOT AN EXCEPTION)
ACKNOWLEDGEMENT :
 (A) YES
 (B) NO

POLL QUESTION 2:
ACKNOWLEDGEMENT :
 (A) YES SOMETHING GIVEN TO DONOR AND DONATION > $75
 (B) NO

ACKNOWLEDGEMENT :
 (B) NO
ACKNOWLEDGEMENT :
 (A) YES
 (B) NO
POLL QUESTION 2:

POLL QUESTION 2:
ACKNOWLEDGEMENT :
 (B) NO
ACKNOWLEDGEMENT :
 (A) YES
 (B) NO DONATION IS < $250

WHEN DO YOU NEED AN
ACKNOWLEDGEMENT:
THE IRS REQUIRES YOU TO SEND A WRITTEN
ARE TRUE:
 A SINGLE DONATION IS GREATER THAN $75

 TOKEN EXCEPTION
 GOOD/SERVICE GIVEN DONOR IS “INSUBSTANTIAL”
 MEMBERSHIP BENEFITS EXCEPTION
 INTANGIBLE RELIGIOUS BENEFITS EXCEPTION
- ALLOWS CHARITY TO BLOW OFF AN OTHERWISE REQUIRED QUID PRO QUO ACKNOWLEDGEMENT
3 EXCEPTIONS

ALL 3 BELOW MUST BE TRUE:
 1.) PART OF FUNDRAISING CAMPAIGN
 2.) CHARITY INFORMS DONOR OF AMOUNT THAT IS DEDUCTABLE AHEAD OF TIME
 “DONATE $100, GET A THERMOS VALUED AT $10. …. $90 MAY BE CONSIDERED A DONATION”
 3.) BENEFIT IS A “TOKEN” IF
 FMV OF BENEFITS RECEIVED IS SMALLER THAN THE LESSER OF
 2% OF TOTAL DONATION AMOUNT
 $125 for 2023 (inflation adjusted annually)
-OR-

ALL ARE TRUE (SAFE HARBOR)
✓ TOTAL DONATION AMOUNT IS AT LEAST $62.50 IN 2023 ($66.00 IN 2024) (inflation adjusted
annually)
✓ ITEMS GIVEN BEAR NAME OR LOGO
✓ COST TO ORG. NO MORE THAN $12.50 in 2023 ($13.20 IN 2024) (inflation adjusted annually)
“LOW COST ARTICLES”
ALLOWS CHARITY TO BLOW OFF AN OTHERWISE REQUIRED QUID PRO QUO ACKNOWLEDGEMENT
TOKEN EXCEPTION

A CHARITY RUNS AN AD REQUESTING DONATIONS AND
SAYING THAT DONORS THAT GIVE OVER $100 WILL GET
A COFFEE MUG. A COFFEE MUG WITH LOGO IS GIVEN IN
RETURN THAT COSTS THE ORG $11.00.
ACKNOWLEDGEMENT :
 (A) YES
 (B) NO
POLL QUESTION 3:

A CHARITY RUNS AN AD REQUESTING DONATIONS AND
SAYING THAT DONORS THAT GIVE OVER $100 WILL GET
A COFFEE MUG. A COFFEE MUG WITH LOGO IS GIVEN IN
RETURN THAT COSTS THE ORG $11.00.
ACKNOWLEDGEMENT :
 (A) YES
 (B) NO TOKEN EXCEPTION APPLIES
POLL QUESTION 3:

 ANNUAL MEMBERSHIP
 $75 OR LESS
 BENEFIT: ANNUAL RECURRING RIGHTS OR PRIVILEGES
 FREE OR DISCOUNTED ADMISSION
 DISCOUNTS AT GIFT SHOP
 FREE OR DISCOUNTED PARKING
NOTE: IF THEY WERE GIVEN OTHER THINGS AS WELL THAT AREN’T TOKENS
THEN MAY STILL NEED TO SEND ACKNOWLEDGEMENT
- DONOR CAN WRITE OFF ALL OF IT
MEMBERSHIP BENEFITS EXCEPTION

 CHARITY OPERATED EXCLUSIVELY FOR RELIGIOUS
PURPOSES
 ONLY INTANGIBLE RELIGIOUS BENEFITS RECEIVED
 KINDS OF ITEMS NOT TYPICALLY SOLD COMMERCIALLY
 ADMISSION TO CHURCH
 WINE USED DURING MASS
 BIBLE STUDY
NOTE: IF THEY WERE GIVEN OTHER THINGS AS WELL THAT AREN’T TOKENS
THEN MAY STILL NEED TO SEND ACKNOWLEDGEMENT
- DONOR CAN WRITE OFF ALL OF IT
INTANGIBLE RELIGIOUS BENEFITS
EXCEPTION

5 THINGS QUID PRO QUO
ACKNOWLEDGEMENTS SHOULD CONTAIN
 CHARITY NAME AND EIN #
 CHARITIES TAX EXEMPT STATUS
 DATE OF CONTRIBUTION
 AMOUNT OF CONTRIBUTION
(or description)
 A STATEMENT STATING
- DESCRIPTION OF GOODS/SERVICES
- GOOD FAITH ESTIMATE OF VALUE

BENEFIT RECEIVED DONATION WRITTEN
Thank you so much for purchasing a VIP ticket a to attend The Synergy Gala 2019. Your VIP ticket,
purchased on 11/30/2022 in the amount of $120 is more than a ticket to a great night of fun….it
helps support Synergy Now continue to do our important work.
With Love,
Gregg S. Bossen ED
Synergy Now Inc. is an exempt organization as described in Section 501(c)(3) of the Internal Revenue Code; EIN 20-1234567. We
estimate the value of the event food and entertainment you received to be $45 . The remaining amount of $75 can be considered a
charitable contribution for tax purposes. Please check with your tax preparer or the IRS for information regarding deductibility.

BENEFIT RECEIVED DONATION WRITTEN
“Synergy Now Inc. is an exempt organization as described in Section
501(c)(3) of the Internal Revenue Code; EIN 20-1234567. We
estimate the value of the event food and entertainment you received
to be $45 . The remaining amount of $75 can be considered a
charitable contribution for tax purposes. Please check with your tax
preparer or the IRS for information regarding deductibility”.

WHAT IS FAIR MARKET VALUE?
THE COST THE DONOR WOULD PAY
FOR THE ITEM COMMERCIALLY
 COFFEE MUG – $5 TO $20
 T-SHIRT - $10 TO $20
- BASIC BUFFET STYLE MEAL - $15 TO $20
- SIT DOWN FANCY MEAL - $25 TO $75
NOT THE CHARITIES ACTUAL COST!!!!!!

WHEN SHOULD ACKNOWLEDGEMENT BE SENT?
TRY TO DO IT BY JANUARY 31
OF FOLLOWING YEAR BUT
DONORS MUST HAVE IT BY THE
EARLIER OF
WHEN THEY FILED
DUE DATE (4/15) PLUS EXTENSION

WHAT FORMAT IS ACCEPTABLE?
MUST BE IN WRITING
 LETTER,POSTCARD, FORM,
ETC….
 COMPUTER GENERATED FORM
 E-MAIL IS FINE AS WELL
 DO IT IN QUICKBOOKS!

PENALTIES:
• FOR DONOR? … LOSE THE
DEDUCTION (IF AUDITED)
• FOR CHARITY? …$10 PER
CONTRIBUTION
(MAX OF $5,000 PER EVENT OR MAILING)

THANK YOU!!!!
Presenter: Gregg S. Bossen, CPA
@GreggBossen
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Bloomerang Thank Yous Dec 2023.pdf

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