Raise4aCause is an official 501(c)(3) tax-exempt organization. This means that Raise4aCause is exempt from federal income tax under Internal Revenue Code (IRC) Section 170 as a Public charity organization.
501(c)(3) Tax-Deductible Contributions
Charitable gifts made to nonprofit organizations that are officially recognized by the Internal Revenue Service (IRS) as having 501(c)3 statues are considered to be tax deductible contributions.
1. What is a donor acknowledgement letter?
Nonprofits must provide donors with a donation "receipt", which is often called an acknowledgement letter. Donors giving more than $250 in a single contribution to a nonprofit organization need a written acknowledgement to claim that deduction on their individual income tax return. This written acknowledgement does not have to be in a certain format and can be written out as letters, e-mails, or postcards.
2. When do these acknowledgement letters need to be sent?
The IRS sets out that acknowledgements must be provided "in writing, at the time of solicitation or when the payment is received, and in a way that will come to the attention of the donor," according to IRS Publication 1771.
3. What is included in the donation acknowledgement?
Name of the organization.
Tax-exempt status: Statement that the organization is a 501(c)3 tax-exempt organization.
Date: The date the donation was received.
For cash (checks, credit card, payroll deduction): The amount of the contribution that was received.
For non-cash gifts: A description (but not the value) of the non-cash contribution.