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holiday wreath with ornament

Merry Christmas Eve and thank you for reading the 25 Days of Giving series! In the spirit of the holiday season I’m covering different aspects of charitable giving…perfect to get you thinking about your end-of-year giving.

Earlier this year I read an article in Forbes about two tax court cases where families claimed large charitable contributions on their federal income tax and, given that they were fraudulent claims, failed to have the substantiation to back it up. As the article stated, “the IRS is NOT messing around when it comes to holding taxpayers to the substantiation requirements for charitable contributions.” The substantiation is required in exchange for the federal income charitable deduction.

Note there is, of course, a limit to the charitable deduction on your taxes. Mind this when considering maxing out your charitable deduction.

Substantiation requirements

First and foremost, the donations must be made to a qualified charitable organization. You must then be able to substantiate your contribution to said qualified charitable organization. The record keeping required by the IRS depends on the amount of your contribution. At their most basic, the IRS substantiation rules for the charitable deduction are as follows:

  • Gifts of less than $250 per donee — you need a cancelled check or receipt
  • $250 or more per donee — you need a timely written acknowledgement from the donee
  • Total deductions for all property exceeds $500 — you need to file IRS Form 8283
  • Deductions exceeding $5,000 per item — you need a qualified appraisal completed by a qualified appraiser

Gifts of $250 or more per donee

Let’s focus for today on gifts of $250 or more per donee. Specifically, the income tax charitable deduction is not allowed for a separate contribution of $250 or more unless the donor has written substantiation from the donee of the contribution in the form of a contemporaneous written acknowledgement.

The $250 threshold

Note this $250 threshold is applied to each contribution separately. So, if a donor makes multiple contributions to the same charity totaling $250 or more in a single year, but each gift is less than $250, written acknowledgment is not required. [Unless the smaller gifts are related and made to avoid the substantiation requirements].

Written acknowledgment

The written acknowledgement must indicate:

  1. the name and address of the donee;
  2. the date of the contribution;
  3. the amount of cash contributed;
  4. a description of any property contributed;
  5. whether the donee provided the donor any goods or services in exchange for the contribution; and, if so;
  6. a description, and a good faith estimate, of the value of the good or services provided or, if the only goods or services provided were intangible religious benefits, a statement to that effect.

Contemporaneous acknowledgement

The IRS definition of contemporaneous is that the acknowledgment must be obtained by the donor on or before the earlier of [a] the date the donor files the original return for the year the donation was made; or [b] the return’s extended due date. A donor cannot amend a return to include contributions for which an acknowledgment is obtained after the original return was filed.

Responsibility lies with the donor

Interestingly, the responsibility for obtaining this documentation lies with the donor. The donee (the charity) is not required to record or report this information to the IRS on behalf of the donor.

If this sounds like a lot, know you don’t have to navigate these requirements just by yourself. Contact me at any time to discuss your situation and charitable giving goals. We’ll figure out the best course of action together.

#GivingTuesday world

The mission of Gordon Fischer Law Firm is to maximize charitable giving in Iowa. To that end we work with nonprofits on legal compliance and training for accepting gifts (especially complex ones) as well was the donors who want to give to their favorite organizations and causes. Small Business Saturday is great for the community and Cyber Monday is fun, but the post-Thanksgiving “day” we look forward to the most is #GivingTuesday.

Created by the Belfer Center for Innovation & Social Impact at the 92nd Street Y in New York, along with the United Nations Foundation, in 2012, #GivingTuesday is a celebration for support of philanthropy and giving. Social media has helped grow the event into a global occasion, connecting countries, organizations, and donors around the world.


#GivingTuesday marks the middle of the seasonal giving system—33% of charitable donations consumers occurs year-round. Whether you’re prepping your nonprofit’s activities, messaging, and events for #GivingTuesday or are a donor preparing to give (and encourage others to do the same) let’s take a look at some stats that show the enormous impact #GivingTuesday has.

 

  • In 2016, on just #GivingTuesday, $168,000,000 million was raised! This year it’s been predicted that $201,000,000 will be raised, for a 20% increase over 2016’s totals. These figures also don’t include the thousands of volunteer hours that donors gave, working to better their communities. The average gift amount donated online on #GivingTuesday last year was an impressive $126 per person.

#GivingTuesday stats on momentum

  • Predictions follow the continuous growth trends the day has seen; #GivingTuesday giving online has grown by 317% since 2012. 2016, alone, saw a 44 percent increase over 2015’s total of $116,700,000.

 

  • More nonprofits are getting in on the action. 33% more charities received an online donation on #GivingTuesday 2016 compared to 2015.

#GivingTuesday impact study results

  • If you’re a nonprofit leader or marketer it’s important to know where your donations are coming from, and how your donors are reaching you. Mobile is taking a significant share of the donation platform pie—22% of online donations were made on a mobile device.

All year, not just on #GivingTuesday, GFLF is thrilled to work with nonprofit organizations on elements of operations including, but certainly not limited to;

  • Training of nonprofit boards and staff and educating on charitable giving tools and techniques;
  • Employment law guidance for nonprofits including advice about hiring and firing, and drafting of policies and procedures;
  • Handling compliance issues, like starting a nonprofit and Form 990 reporting; and
  • Working with nonprofit and donors on complex gifts.

(If your nonprofit is interested in any such services, I offer a free consultation.)

#GivingTuesday is a reminder that, against the backdrop of the “busy” of the holiday season, the spirit of giving is thriving. Want to talk charitable giving? Reach out anytime by email or phone (515-371-6077)

Hope Lodge Iowa City

From the outside looking in, with its lush landscaping and towering brick chimney, the Russell and Ann Gerdin American Cancer Society Hope Lodge in Iowa City gives an immediate impression that it’s a home. Which is what the facility does indeed become for the cancer patients receiving lifesaving treatments.

Hope Away from Home

Doors to the Hope Lodge opened in September 2008 following a $4 million donation from the Lodge’s namesakes, Russell and Ann Gerdin. (University of Iowa provided the land for the construction.) It was the first of its kind in Iowa and the 28th facility of its kind in the U.S. The Hope Lodge offers amazing service in the form of 28 private guest rooms free of cost to cancer patients (and their adult caregivers) undergoing active outpatient cancer treatment at area medical facilities: The Veterans Administration Medical Center, Mercy of Iowa City, or University of Iowa Hospitals and Clinics. The guest rooms each have a private bathroom and two beds, but the bedrooms are just the start when it comes to the other welcoming, inviting spaces.

Hope Lodge; Hope Sweet Hope

Quinn Hackert, assistant manager of the Hope Lodge, said that the facility has a Midwestern “lodge-y” feel to it and has plenty of community spaces to encourage people to get out their rooms and “really get to know each other.” Guests can enjoy a community dining area, sit in two screened-in porches, computer room, laundry, library, exercise room, and cook meals in two complete kitchens. Musical groups and weekly potluck dinners are another community-building opportunity to take advantage of.

The level of service the Hope Lodge is able to offer is truly amazing with a small staff of 12 (most are part-time employees), they were able to offer 13,355 nights of free lodging in 2016. Hackert said the Hope Lodge is typically full; if that’s the case and a patient needs/qualifies for accommodations, the American Cancer Society hotel partner program is utilized until a Hope Lodge room opens up. The hotel partner program means hotels in the area can offer a room for free or a significant discount. “The average length of stay is 22 days, however that’s a little skewed since our radiation patients often stay for six to eight weeks,” Hackert said.

American Cancer Society - Hope Lodge

In order to stay at the Hope Lodge patients must meet some eligibility requirements, such as the patient must live at least 40 miles away from the treatment center, have an end date to their current plan, and be cleared by a physician of infectious diseases, among others. According to the Hope Lodge’s website, prospective guests need their physician or a member of their cancer health care team to fill out a Hope Lodge referral form.

Another major benefit for patients staying at the Hope Lodge is the breadth of cancer-related services and programs including support groups for general cancer support, breast cancer, head and neck cancer, as well as a group specific for female patients.

Get Involved

American Cancer Society’s 2017 Hope Lodge “10th Anniversary Dancing for the Stars” Gala

Hackert reiterated that the Hope Lodge is supported and funded entirely through donated funds and times. The nonprofit’s highly anticipated annual fundraiser—10th Anniversary Dancing for the Stars—is coming up on November 11, 2017 at the Coralville Marriott Hotel & Conference Center. The black tie event features delicious food, enticing auction, and the main entertainment: local celebrities dancing in routines choreographed by professional dancers. Interested in attending? Tickets are $100/person and $1,000/10 person table. Hackert also indicated they’re still searching for additional sponsors.

Hope Lodge donations

On the general donations front, Hackert said, “We’re always in need of paper products like office paper, toilet paper, paper towels.” He added that those interested in donating time should contact Lynn Johnson at Lynn.Johnson@cancer.org or by phone at 319-248-5400. “We always need general volunteers and drivers that drive patients to the hospital in a Prius donated by Toyota,” Hackert said. “We have volunteers at guest services—the front desk and people can make and bring in meals for the guests.” Hackert added that the volunteers just need to go through a short orientation.


Note: GoFisch is happy to feature Iowa nonprofits and the great work they do in our community. A feature does not indicate any client relationship. If you’re interested in having your nonprofit featured, please don’t hesitate to contact Gordon.

Gordon works with nonprofits and the donors who support them in a number of different ways, including coordinating complex gifts. If you’re a donor or donee looking to maximize the benefits of your charitable gift, contact Gordon at any time by email, Gordon@gordonfisherlawfirm.com, or by phone at 515-371-6077.