Monday, December 17, 2018

Essentials of Gift Acknowledgment and Reporting

As 2018 comes to a close, the holidays bring with them a time of reflection. One of our favorite traditions here at ECFA is our last webinar of the year, the 10 Essentials of Gift Acknowledgment & Reporting. To clarify some misconceptions about end-of-year giving, we’ve addressed three of the most common myths to get you and your givers through the season and charitable deductions.

Common Gift Deduction Myths of Givers

Myth #1: You don’t need a gift receipt if you make cash gifts.
Single gifts of any amount over $250 require a written gift acknowledgment. 

Myth #2: You can deduct the value of your time, and/or the rent-free use of property.
Though these two gifts may be some of the most valuable to an organization, they are not deductible for tax purposes. Unreimbursed out-of-pocket costs incurred by volunteers, however, may qualify for a charitable deduction.

Myth #3: It’s OK if you receive a gift acknowledgment after you file your tax return.
Givers must have a proper charitable gift acknowledgment no later than the due date, plus any extension, of their federal income tax return or the date the return was filed, whichever is earlier. Churches should be sure to have appropriate acknowledgments into the hands of givers well before tax time.