Date: 08/06/2008

On July 30, 2008, the Federal Tax Court ruled on a case involving a series of gifts to a church (all gifts were in excess of $250) in which the gifts were deemed not deductible by the taxpayer simply due to a failure by the church to provide a contemporaneous written gift receipt that contained the mandatory statement regarding whether goods or services were provided in exchange for the gifts.  

The minimum requirement for a gift receipt from the church would be a year-end summary listing dates received, cash amounts, descriptions of property gifts, and the statement that no goods or services were provided by the church to the donor other than intangible religious benefits.  This gift receipt must be received by the taxpayer prior to filing his/her tax return.  Nevertheless, for any gift that exceeds $250 in value or that is a gift of property (e.g., stock, land, personal property), the Foundation recommends providing a prompt written thank you and receipt in addition to any year-end gift summary.

To review sample gift receipt letters for gifts of cash, property, securities and other related topics click here.

NOTE:  Gift receipts should only state a value for cash gifts.  Property should only be described, not valued.