The IRS has proposed a change to how nonprofits provide the required written acknowledgement of charitable donations of $250 or more. A form similar to the current Forms 1099 or 1098-C (vehicle donation) would be developed, and nonprofits would have the option of using this new form instead of the typical acknowledgement letter. Most organizations will likely continue to use the more personal, appreciative letter for donor relations purposes, but the new IRS form may be a good option to ensure all of the required information is provided. An improperly-worded acknowledgement letter can easily cost a donor their charitable tax deduction.
September 30, 2015