Download Barry Chait`s Fundraising Regulations Powerpoint (July 13, 2011

Practical Advice on Development
and Related Regulations
Barry N. Chait, Esq.
July 13, 2011
Rules of the Game

Questions on Form 990
1.
2.
Does the organization have a gift
acceptance policy that requires the
review of any non-standard
contributions?
Did the organization receive more
than $25,000 in non-cash
contributions? If yes, complete
Schedule M.
Rules of the Game, cont.

Questions on Form 990, cont.
3.
Did the organization receive a
payment in excess of $75 made partly
as a contribution and partly for goods
and services provided to the payor? If
yes, did the organization notify the
donor of the value of the goods or
services provided?
Rules of the Game, cont.

Questions on Form 990, cont.
4.
Did the organization sell, exchange or
otherwise dispose of tangible personal
property for which it was required to
file Form 8282?
Rules of the Game, cont.
Quid pro-quo
Rules of the Game, cont.
Quid pro-quo, cont.
Latin: “What for what” or something
for something.
The concept of getting something of
value in return for giving something
of value.
Rules of the Game, cont.
Quid pro-quo, cont.
Organizations that receive quid pro-quo
contributions exceeding $75 (regardless
of the deductible amount) must provide
a written statement to the donor stating
that the contribution deduction is limited
to the excess of the contribution over
the value of the goods or services
rendered.
Rules of the Game, cont.
Fundraising or Gaming Activities



All organizations that report over $15,000 in
fundraising activities or report more than
$15,000 of gross receipts
Must list the top ten compensated individuals
who are paid over $5,000 for fundraising
Those organizations that receive more than
$15,000 have to report revenue, cash and noncash prizes and direct expenses
Donor Rules
Substantiating Contributions
A donor will not be allowed any deduction for
a contribution by cash, check or any other
method regardless of the amount unless
the donor retains either
1) a bank record that supports the donations
or
2) a written receipt or communication from
the charity showing the name of the
organization, date and amount of the
contribution
Donor Rules, cont.
Cash Contributions
Donors must also get a written
acknowledgement from the charity if the
value of the contribution is $250 or more. A
canceled check or other reliable record is not
sufficient proof.
Acknowledgement must be obtained no later
than the due date (or extended due date) of
the donor’s tax return for the year the
contribution was made.
Misconceptions
Donor donates time and gives presentation
to a non-profit to help its charitable
mission.
What is the deductible contribution?
Donor donates a baseball card
collection to his or her favorite charity
to auction off at their yearly auction.
What is the deductible contribution?
Donor donates a baseball card
collection to the Baseball Hall of Fame
in Cooperstown.
What is the deductible contribution?
Donor purchases a raffle ticket for
$100 with the potential to win an
antique car.
Deductible or non-deductible?
Barry Chait donates an opportunity to golf
with him at the Country Club.
Charitable Organization auctions this
opportunity off at their annual gala.
They list the value as priceless (!).
What is the deductible amount of the
contribution?