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| Author |
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| 25 new of 115 responses total. |
aruba
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response 85 of 115:
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Feb 18 21:19 UTC 1999 |
Re #82: I wasn't aware you put much stock in prophecy, Rane. :)
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srw
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response 86 of 115:
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Feb 18 23:16 UTC 1999 |
Perhaps Ms. Dodea was trying to make it clear that email receipts are
useless, and cannot be used as proof of anything. For that reason, all
receipts that are to be used for income tax purposes MUST be mailed.
That said, there is still no need to send out any such recipts unless
they are over $249, because only then does the IRS require such a
receipt.
I would propose this policy, slightly different from our current policy:
(1) Send out receipts for any individual donation of $250 or more.
(These are rare, but required by the IRS.)
(2) Always send out email acknowledgement and thanks for any donation,
including membership. This is for public-relations purposes only.
Also include an offer to send a paper receipt upon request.
(3) Honor requests for paper receipts.
It's actually pretty close to what we do now. the main difference is
that it would cut down on unnecessary paper receipts between $75 and
%249. I am one who received such an unnecessary and unrequested receipt.
It didn't upset me too much, but it was a bit of a waste because I
didn't need it.
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rcurl
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response 87 of 115:
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Feb 19 06:12 UTC 1999 |
It's a parable, which is a form of metaphor. I go for metaphors.
Slight correction, Steve. The IRS only requires that receipt for donations
of $250-up *if the donor wishes to deduct*. The $250 limit then controls
what the receipt must say. But, I'm part of the school that says send
receipts for every donation except dues (because the corporation has a
formal list of members, which can be used as proof). If it is such a
burden on people to receive an unwanted receipt - how about sending a nice
Grex decal with it, as a "thank you"?
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keesan
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response 88 of 115:
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Feb 19 07:03 UTC 1999 |
Why send paper receipts when email ones are already being sent? They waste
materials and time. Are there any nonmembers donating money?
I think Grex decals are also a waste of resources and would be annoyed to
receive one. I have no use for decals. I am supporting an organization that
makes it possible to communicate without paper
I will call Ms. Dodea if other grexers do not believe the person from United
Way. Let me know.
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scg
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response 89 of 115:
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Feb 19 07:17 UTC 1999 |
E-mail, being plain text, would be much easier to alter without leaving a
trace than a paper receipt would. E-mail as proof of anything is fairly
worthless.
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keesan
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response 90 of 115:
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Feb 19 21:07 UTC 1999 |
From null@irs.gov Fri Feb 19 16:03:29 1999
Date: Fri, 19 Feb 1999 09:44:59 -0800
From: null@irs.gov
To: keesan@cyberspace.org
Subject: IRS Email Tax Law Assistance
NOTE: Our response to your tax law question appears below. If you
have additional questions on this or any other general tax law topic,
you must post it to our web site at:
(http://www.irs.ustreas.gov/prod/help/newmail/user.html. We are not able
to receive E-mail messages directly from our customers because of current
limitations to our system.
Thank you for your question. The only requirements are the donor is
responsible for requesting and obtaining the written acknowledgement
form the donee to get a statement from the organization of any
contributions of $250 or more. Publication 1771, Charitable
Contributions--Substantiation and Disclosure Requirements discusses this issue
if you wish to download it form our website at www.irs.ustreas.gov. Please
contact us again if you have any other questions. Mrs. Fahlund 1-800-829-1040
Your Question Was:
Question about 501(c)3 organization. OUr local computer conferencing
group recently became 501(c)3. It is a volunteer organization free
to everyone but survives on donations to cover operating expenses (rent
and utilities and equipment). Are 501(c)3 organization absolutely
required to mail out paper receipts for every donation, as we were told
by a nonprofit advisor? Easter Seals does not and did not think there
was a rule. Most of our donations are under $73 (annual membership
donation is $72) so the board voted as a compromise to mail receipts to
the 23 out of 84 members who donated over $74 in one year. Most of
us do not itemize taxes and have no use for receipts, in addition to
which you don t need a receipt for amounts under $250. The treasurer
wasted five hours of his volunteer time and some paper and postage that
came out of the donations to send out 23 receipts when only 4 people
requested them. (I specifically requested no receipt but got on
anyway). Please tell us if there is some law that requires a 501(c)3
organization to mail paper receipts to all donors whether or not the donor
wants a receipt. ALl donors are already emailed a personal receipt
notice and thank you. Only one donor last year donated more than $249
(a ten year membership). If you do not know the answers, which I could
not find online in one hour, please tell me where to go to ask this
question. I cannot believe that an organization is required to mail
out pieces of paper to people who have no use for them and do not want
them. Other nonprofits said they mail receipts upon request and had
never heard of any law that says you must mail receipts. I called the
National Charities Bureaus which never called back. Is there some
publication I could read that would contain the answer? Cynthia Keesan
To access IRS information on-demand, 24 hours a day, point your
browser to our web site at http://www.irs.ustreas.gov/.
Here's a tip for navigating the IRS homepage. Use the "search"
button at the bottom of the web page. Enter key words or phrases when
the entry box comes up. It could help you find your answer immediately.
Finally, because we're interested in your opinion and providing
the best possible service, please take a moment to answer our very short
survey at: http://www.irs.ustreas.gov/help/newmail/email-survey.html
IDENTIFIER: irsmsr3 |#166317
Does this settle the question? The IRS knows of no law requiring donees to
provide written receipts for any donations, as I read the above, but the donor
is required to provide a written proof if itemizing donations over $249.
I hope that the board will do a revote and only send paper receipts to people
who request them, after sending out email receipts letting them know that
their donation was received and appreciated, and that paper receipts are not
required for itemizing on Federal income tax for amounts under $249 but will
be supplied to anyone who requests one.
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rcurl
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response 91 of 115:
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Feb 19 21:43 UTC 1999 |
That conflicts with the instructions for 1040, which says donors need to
be able to substantiate all donations.
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scg
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response 92 of 115:
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Feb 20 00:56 UTC 1999 |
Also, I believe that the IRS says that their answers on tax law are not
authoratitive, and that you need to contact a tax attorney instead of the IRS
if you want an authoratitive answer.
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rcurl
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response 93 of 115:
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Feb 20 05:07 UTC 1999 |
I suspect that in part unclear answers are given to unclear questions. There
are so many parameters about deductible contributions that it takes pages
to explain them even roughly. The IRS answer saying consult publication
so-and-so was the best answer. Form 1040 are a poor person's substitute,
especially for such ridiculously small amounts of money are are being
discussed here. I save all my receipt for travel on behalf of non-profits,
which are deductible expenses, and I *know* someone that was audited and
had to produce their receipts for toll road tolls, etc, to get the
deduction (I think it was just a test to see if the person had at least
some of such receipt related to the claimed expenses).
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pfv
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response 94 of 115:
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Feb 20 05:16 UTC 1999 |
Trusting in IRS answers is always a mistake: folks that have done
so were dragged into court - and LOST EVERY TIME..
The IRS is totally irresponsible: they do not have to tell the
truth; their "truth" can change in a heartbeat; and through it
all, the citizen is held responsible..
If you don't *KNOW* - that is, can win in any court - document the
hell out of EVERYTHING.
Does this need to be discussed further? Really?
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steve
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response 95 of 115:
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Feb 21 04:18 UTC 1999 |
I'm afraid Pete is right.
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keesan
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response 96 of 115:
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Feb 22 21:16 UTC 1999 |
The IRS explicity states that a cancelled check is sufficient documentation
for amounts under $250. United Way believes this, can't we? If people refuse
to believe the IRS and United Way, why are they believing Sue Dodea? I can
call her if anyone wants me to to ask where she got her information. The last
tax lawyer that I had any contact with was wrong.
If people who are itemizing on the federal income tax do not believe that a
cancelled check is adequate, they can request a paper receipt to staple to
their check. What percentage of grex donors itemize anyway?
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keesan
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response 97 of 115:
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Feb 24 19:41 UTC 1999 |
I talked with Mark last night. He showed me a page from the IRS stating that
nonprofits must be able to prove that donations of $75 or over were not for
services received, that may be where the $75 figure came from. He also said
that Ms. Dodea insisted on the paper receipts (if I understood correctly) as
a way of proving on paper where donations came from. Since the paper receipts
are being mailed to donors rather than kept by grex, this did not seem to me
to constitute proof of where donations came from, in case of an IRS audit of
grex. So I suggested that Mark keep photocopies of checks over $75, or better
yet of all checks. We therefore came up with a technological solution in the
form of getting him a photocopier that had been looking for a home. We
brought it over and installed it on top of the file cabinet and ran some pages
through to eliminate the dark smudges that were the result of toner getting
out during shipping (driving), and he can now photocopy all the incoming
checks before depositing them each month, at least six to a page. The copier
may also be usable for printing out grex user manuals (free until the toner
runs out). It will save Mark the need to go to the copy shop occasionally.
So we all seem to be agreed that donors do not need paper receipts for
amounts under $250, but grex is supposed to be keeping paper records of
donations of $75 or above.
I therefore propose that the rules be amended as follows:
All donors will be sent email receipts, informed that the IRS requires
paper receipts for amounts of $250 or up but that otherwise a cancelled check
is considered adequate proof of a donation in case you are itemizing on your
federal income tax, and that paper receipts will be mailed to anyone who
requests one.
The grex treasurer will keep photocopies of all donations of $75 or
more. Donors will be urged to write on their checks what they are for -
membership donations, other donations, or purchase of t-shirts, etc. At
his/her discretion, the treasurer may keep photocopies of all checks. Mark
felt that he would be held personally responsible in the case of an audit and
would like to keep as detailed records as possible. It is also to the benefit
of donors who plan to itemize to write on their checks what they are for.
Mark, please correct any of the above.
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tpryan
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response 98 of 115:
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Feb 25 05:30 UTC 1999 |
Then a e-mail form letter could go out upon receipt of check,
referencing the check and check number, and a lot people would have
cancelled check and an e-mail print-out if they want.
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dang
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response 99 of 115:
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Feb 26 16:12 UTC 1999 |
For the IRS, any kind of e-mail, printed or not, will be meaningless for
these purposes, I'm sure.
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tpryan
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response 100 of 115:
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Feb 26 17:19 UTC 1999 |
I am very sure that if I got an e-mail thank you refferecning
a check number, I would know that I could see that check & donation
go together.
I might even want to move the check from the bank statement
folder to the donations folder.
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dang
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response 101 of 115:
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Feb 26 18:10 UTC 1999 |
Aha, I misunderstood that it was for your purposes, rather than for the IRS.
Sorry.
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keesan
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response 102 of 115:
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Feb 27 04:25 UTC 1999 |
The IRS only requires the cancelled check, not a receipt of any sort.
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dang
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response 103 of 115:
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Feb 28 03:18 UTC 1999 |
Yes, Cindi, I realize that. However, if you don't have a canceled
check, for whatever reason, then you need a receipt.
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davel
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response 104 of 115:
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Feb 28 03:28 UTC 1999 |
Those who have checking through (say) UM Credit Union do not get cancelled
checks back. They can get a copy through the CU ... for a (non-trivial) fee;
I have no idea whether the copy would be acceptable to the IRS.
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devnull
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response 105 of 115:
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Feb 28 03:34 UTC 1999 |
I am quite happy to assume that a photocopy of the canceled check provided
by my bank counts as `other reliably documentation' if it doesn't count
as a canceled check.
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keesan
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response 106 of 115:
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Feb 28 16:55 UTC 1999 |
IRS Publication 552, Recordkeeping for Individuals.
Proof of Payment.
Generally, you prove payment with a canceled check or cash receipt. If you
do not have a canceled check becaue your bank does not return canceled checks
or if you make payments by credit card or electronic funds transfer, you may
be able to prove payment with an account statement.
---
I suggest that people who get cancelled checks back use these as proof of
donations, and people who do not get any written statement from their banks
or credit card companies, but who itemize on their 1040s, request a written
receipt from the grex treasurer. People who do not itemize and who do not
claim grex as a business expense do not need any proof of their donation.
For amounts over $249, people who itemize can request a written receipt.
People who itemize and have donated under $75 might still like a written
receipt if they don't have cancelled checks, so the $75 limit does not make
sense as a cutoff for sending receipts.
I suggest sending email receipts to everyone who donates, and people
who need a written receipt because they are itemizing and either do not get
cancelled checks (for any amount donated, including under $75) or they have
donated $250 or more, request one. I am sure Mark will be happy to send to
anyone who wants one, but the email receipt should point out that a cancelled
check is considered adequate proof by the IRS for amounts under $250.
----
Another interesting pointi n this publication:
Contributions from which you beneift. Generally, if you make a charitable
contribution that is more than $75 and is partly for goods or services, the
organization must give you a written statement that you should keep.
I suspect this is what Ms. Dodea was getting at. If someone spends more than
$75 on T-shirts or auction items, it looks as if grex is supposed to provide
a paper receipt (or is email written?) even if you don't want one. Mark, how
many people donated $75 or more for goods or services?
I suspect grex is also supposed to keep a copy of these written
statements for goods or services received.
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rcurl
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response 107 of 115:
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Mar 1 06:35 UTC 1999 |
Don't forget that that $250 point is not about a receipt per se, but a
particular statement that must accompany the receipt.
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keesan
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response 108 of 115:
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Mar 1 21:36 UTC 1999 |
Actually, if someone pays for only auction items with a check, it is not
'partly' for goods or services, so I suspect the written statement (email?
paper?) would be only if you sent in, say, $150, and got a t-shirt for part
of that and the rest was a donation. This is not too clearly worded.
How about a receipt policy that says anyone who wants a paper receipt can have
one upon request, for any reason, and everyone automatically gets an email
receipt that points out that a cancelled check is proof of donation for
amounts under $250 but that you need a written statement for donations of $250
or higher if you are itemizing, or a written receipt for any amounts that you
are itemizing if you don't have a cancelled check or bank statement as proof?
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cmcgee
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response 109 of 115:
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Mar 2 00:24 UTC 1999 |
How about a receipt policy that says everyone gets a paper receipt. Period.
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