You Make the Call - May 30, 2024

Question: The Compassionate Hearts Foundation is a §501(c)(3) nonprofit organization that helps individuals pay for medical care. The organization received cash donations from two individuals. $50 was given by one and $85 was given by the other. The individual who made the $85 donation was given a meal voucher to a local restaurant as a thank-you gift. The meal voucher was valued at $25. Is the organization required to provide a written acknowledgment to each donor?

Answer: Not for both. A written acknowledgment is required to be given by the organization to any donor who gives $75 or more. The nonprofit is not required to give a disclosure to the individual who made the $50 cash donation. However, the organization must provide a written acknowledgment to the individual who made the $85 donation, even though the net charitable contribution is only $60 ($85 donation less the $25 thank-you gift).