Why it matters
Under IRS rules, when a donor pays more than $75 and receives something in return, you must give them a written disclosure. It tells them that only the amount above the value of what they received is deductible, and gives a good-faith estimate of that value. A $150 ticket to a dinner worth $60 means a $90 deductible gift.
This comes up at galas, auctions, paid events and memberships with benefits. Set the fair market value of each ticket level or item before you sell it, and put the disclosure on the receipt. Some token items and benefits are exempt, so check the specifics with your accountant.
How Steward shows it
Event ticket levels, membership levels and auction items each carry a fair market value that you set. Steward never estimates it, and refuses a value higher than the price. The donor's receipt then states the deductible part, and the full amount they paid still counts in your totals.
Related terms
- Tax receipt Tax receipt is the name for the written confirmation a nonprofit gives a donor so they can deduct a gift. A US donor needs one to deduct any single contribution of $250 or more.
- Acknowledgment letter Acknowledgment letter is the name for the thank-you a nonprofit sends after a gift. It thanks the donor personally and, when it includes the required details, also serves as their written acknowledgment for tax purposes.
- In-kind gift An in-kind gift is a donation of goods or services instead of money, such as food, equipment, auction items, office space or professional work given for free.
The free Lost & Found audit reads a giving export in your browser and shows your lapsing donors and what they used to give. Nothing is uploaded. Then bring the same file to a 20-minute demo.