Tax Deductable Donation Question

[lovetoscrap]

I am running the Direct Donation Campaign for our PTA. I want to emphasize the fact that because we are a nonprofit (501c) donations are tax deductable.

However I am also considering offering "thank you gifts" for different donation levels, much like many PBS donation campaigns. Donate $50 and get a coffee mug, donate $100 and get a t-shirt etc....

But if I offer gifts does that negate the tax deductable nature of the donation? I have some sample donation receipt letters from another PTA and one says [in essence] "Thanks for your donation of X. No goods or services were exchanged." and the other says [in essence] "Thanks for your donation of X. In appreciation for your gift we have enclosed X,Y,Z with a fair market value of X."

So let's say they donate $100 and I send them a t-shirt ($5 cost to us--but we sell them for $10 as a fundraiser) and a free dance ticket (usually $5). Does this mean they can't use their donation as a tax deduction at all, or would they just have to deduct the value of the "gifts"--$10 and have $90 be their deduction?????

 

[barkley]

if i remember right from when i was on a non profit board it was the case that any thank you gifts that were tied into specific donations did have to be detailed out (value wise) for the the doner because they had to deduct that value from the amount of their donation for tax purposes. so if they got 2 tickets to a play as a thank you for a $100 donation we had to detail out that the fmv was $20 and they could only deduct $80.

just as an aside-as a doner to these kinds of things i'de always prefer to see that all the money i'm donating goes to the cause and not to expenses such as thank you gifts.

 

[Allison]

Barkley's correct. They would not be able to deduct the value of the product you are giving back to them.

 

[freckles and boo]

just as an aside-as a doner to these kinds of things i'de always prefer to see that all the money i'm donating goes to the cause and not to expenses such as thank you gifts.

Same here. I would rather NOT have another coffee mug or umbrella with the HSUS logo on it, although I know that these items are also donated to the Humane Society by businesses for the very purpose of getting the brand out there. For the PTA I would prefer that the money go to field trips, celebrations, equipment, etc.

I work for a not-for-profit professional theatre. Our donors are listed and recognized in our programs. Is there a way to publicly recognize your donors? A newsletter or a poster?

 

[lovetoscrap]

Thank you, that is what I thought but I wanted to be sure.

just as an aside-as a doner to these kinds of things i'de always prefer to see that all the money i'm donating goes to the cause and not to expenses such as thank you gifts.

I do too! But this campaign didn't go over so well last year when they just asked people to write a check without any incentive. So we I am trying to add much more this time. I want to add a line to our donation form where they can decline the gifts, take the full deduction and know all their money goes to us--that was my reason for asking this. I am not even going to order the gifts until after the campaign is over so I don't waste money on things we don't use.

 

[lovetoscrap]

Same here. I would rather NOT have another coffee mug or umbrella with the HSUS logo on it, although I know that these items are also donated to the Humane Society by businesses for the very purpose of getting the brand out there. For the PTA I would prefer that the money go to field trips, celebrations, equipment, etc.

I work for a not-for-profit professional theatre. Our donors are listed and recognized in our programs. Is there a way to publicly recognize your donors? A newsletter or a poster?

I wish everyone thought that way! For everyone that HATES buying wrapping paper, frozen pizzas, cookie dough etc... There is always another one that wants to "get something" for their money. I hate selling crap and spending money on useless junk but if I have to spend $5 for every $100 donation then so be it. I am also going to try to get somethings donated like coupons for a free cup of coffee or something from area business that I can use as the gifts.

We will be sending out the Tax Deductible Receipts this year, a hand written thank you card, and will recognize with a huge display in the cafeteria (the central area in the school), names listed in our email newsletter and in our print newsletter.

I think I have a fun idea this year that will also help encourage the donations. If we reach our fundraising goal then we will be duct taping the Principal to the gym wall at the first Pep Rally! For each $10 donated that family will get a piece of Duct Tape to use for the taping up!