501(c)(3) Donation Receipt Template
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A 501(c)(3) donation receipt is the written record of a gifted contribution to an eligible charitable organization. This receipt applies to both monetary and in-kind donations. Donors and charities need to keep these receipts for bookkeeping and tax filing purposes.
At the very least, a 501(c)(3) donation receipt must include the following information:
- Amount ($) or physical description of the donation;
- Charity name, address, and EIN (Tax ID);
- Donation date;
- Donor name and address;
- Signature of the charity’s representative; and a
- Statement that the charity didn’t provide any goods or services in exchange for the donation.
By Type (9)
- ACLU
- American Red Cross
- Arms of Hope
- Big Brother/Big Sister
- Focus on the Family
- Goodwill
- JDRF
- Salvation Army
- United Way
Table of Contents
- By Type (9)
- What is a 501(c)(3)?
- Donation Rules
- Benefits of Donating to a 501(c)(3)
- Table: Rules For Exempt Organizations (By State)
- Resources
What is a 501(c)(3)?
A 501(c)(3) organization is eligible to receive tax-deductible donations. According to the IRS, to qualify as a 501(c)(3), an organization’s mission must be charitable, educational, literary, religious, or scientific. It can also qualify if its primary purpose is to foster national or international sports competition, prevent cruelty to animals or children, or test for public safety.
The IRS defines a charitable organization as one that works toward:
- Advancement of education or science;
- Advancement of religion;
- Combating community deterioration and juvenile delinquency;
- Defending human and civil rights;
- Easing neighborhood tensions;
- Eliminating discrimination and prejudice;
- Erecting or maintaining public buildings, monuments, or works;
- Lessening government burdens; and
- Relief of the distressed, poor, or underprivileged.
Donation Rules
Donor Tax Deductions
Monetary and in-kind donations made to eligible 501(c)(3) organizations are tax deductible for the donor. To claim a tax deduction, donors are required to provide evidence of a donation with their annual tax return.
For donations of $250 or less, a bank statement or simple note with the charity’s letterhead suffices. 501(c)(3)s are required to provide formal written acknowledgments for donations over $250, or donations of any amount that included an exchange of goods or services.
Donations of $5,000 require a valid appraisal by an IRS-qualified appraiser. The IRS defines a qualified appraiser as someone who:
- Earned an appraisal designation from a generally recognized professional appraiser organization;
- Meets minimum education requirements and two (2) or more years of experience;
- Regularly gets paid to prepare appraisals; and
- Is not otherwise excluded from eligibility.
501(c)(3) Tax Filing
All qualified 501(c)(3) charitable organizations are required to file annual income and expenses with the IRS, typically on Form 990. If a registered charity fails to file a tax return for three (3) consecutive years, it automatically loses its tax-exempt status. Organizations with certain gross receipts and total assets may file a different version of Form 990:
- Gross receipts less than $50,000: Can file Form 990-N;
- Gross receipts less than $200,000 and Total assets more than $500,000: Can file Form 990-EZ; and
- Private foundations (regardless of financial status): Can file Form 990-PF.
Churches and Religious Organizations
Churches and religious organizations that meet the IRS requirements to be a 501(c)(3) non-profit don’t have to officially apply for and obtain tax-exempt status from the IRS. This means they aren’t automatically stripped of the tax-exempt status if they fail to file a return.
According to § 7611 of the IRC (Internal Revenue Code), the IRS can only initiate a tax inquiry on a church if a high-level Treasury official has clear written evidence that a church or religious organization:
- Might conduct business unrelated to its charitable purpose (advancement of religion);
- Might engage in taxable activities;
- Might have conducted a transaction that provided “excess benefits” to a disqualified individual or entity; or
- Might not qualify for exemption under § 501(c)(3) of the IRC.
Employment Taxes: With a few exceptions, 501(c)(3) organizations that staff paid employees are not exempt from paying employment taxes and must file the appropriate tax return annually.
Unrelated Business Income: When a charitable organization incurs “unrelated business income” of $1,000 or more (gross), it is also required to file an Unrelated Business Income Tax Return (Form 990-T). Three conditions determine this whether a particular source of funds qualifies as this type of income:
- It comes from a trade or business endeavor;
- That trade or endeavor is regularly performed or implemented; and
- The trade or endeavor doesn’t further the mission for which the organization received its tax-exempt status.
Political Prohibitions
501(c)(3) organizations are strictly prohibited from attempting to influence legislation and participating in campaign activities for political candidates. This applies to all local, county, state, and federal levels. An organization that violates this prohibition risks complete revocation of its tax-exempt status. Depending on the nature of the violation, the organization may also have to pay certain excise taxes.
Charitable organizations are allowed to participate in voter education and registration programs as long as the programs neither favor one candidate over another nor overtly oppose any candidate.
Types of Legislation (action by Congress, local councils, public votes, and state legislatures):
- Acts;
- Ballot initiatives;
- Bills;
- Constitutional amendments;
- Legislative confirmations of appointive offices;
- Referendums; and
- Resolutions.
Permitted Activities (non-partisan and non-biased):
- Holding educational meetings;
- Creating and distributing educational materials; and
- Otherwise, addressing issues of public policy in a strictly educational way.
- Contacting members of a legislative body (or their employees) to oppose, propose, or support legislation;
- Urging the public to contact public members of a legislative body (or their employees) to oppose, propose, or support legislation;
- Publicly endorsing a political candidate or piece of legislation;
- Urging the public to vote for or support a political candidate or piece of legislation.
Private Interests
Net earnings of a 501(c)(3) organization can’t benefit any individual with a private interest in the organization’s activities. Individuals that might have a private interest include but are not limited to:
- The founder;
- The founder’s family;
- Shareholders; or
- People controlled by any of the above individuals.
Benefits of Donating to a 501(c)(3)
Other than the gratification that comes from contributing to a worthy cause, donations to qualifying 501(c)(3) charities are tax deductible. All monetary donations of $250 or more made to a charity on or after January 1, 2007, require a written acknowledgment from the charity in order to be tax deductible.
The donor needs this acknowledgment in time to file their annual tax return for the year the donation was made. They are responsible for requesting and obtaining a 501(c)(3) donation receipt for their files and returns. Charities have no legal obligations to provide donation receipts.
Find a Qualified Organization
The IRS offers the Tax Exempt Organization Search tool for anyone to find a qualified 501(c)(3) charity or check the tax-exempt status of an organization. The following information can be found with this search tool:
- Current Automatic Revocation of Exemption List;
- Determination Letters;
- Form 990 Series Returns;
- Form 99-N Returns; and
- Publication 78 Data.