Writing Receipts

This page should contain procedures and rules for issuing reciepts.

How to Write a Receipt for a Donated Item

This short article details how to write receipts, and other good stuff: http://www.irs.gov/pub/irs-pdf/p1771.pdf

This is non-legal advice from Corydon, it should be confirmed by checking IRS brochure on the issue http://www.irs.gov/publications/p561/ar02.html

• If an item is donated new, issue receipt for full amount
• Use a standard fair method to determine depreciation. Corydon suggests 40% for each year item was in service.
• If an item is accepted by the 501c3 and then sold, donator can only claim the amount the item was sold for.
• If an item is accepted and then given away for fundraising purposes (ie, lottery prize), donateor can claim fair market value
• http://www.irs.gov/pub/irs-pdf/p526.pdf
  • at the top of page 2 is a chart "Table 2" that shows that you may

not deduct as a donation the value a raffle ticket.

Conversations

13:27 Corydon76-dig Determining the value of donated property would be a simple matter if you could rely only on fixed formulas, rules, or methods. Usually it is not that simple. Using such formulas, etc., seldom results in an acceptable determination of FMV. There is no single formula that always applies when determining the value of property.
13:28 Corydon76-dig This is not to say that a valuation is only guesswork. You must consider all the facts and circumstances connected with the property, such as its desirability, use, and scarcity.
13:28 Corydon76-dig For example, donated furniture should not be evaluated at some fixed rate such as 15% of the cost of new replacement furniture. When the furniture is contributed, it may be out of style or in poor condition, therefore having little or no market value. On the other hand, it may be an antique, the value of which could not be determined by using any formula.