Charitable contributions aren’t always eligible for tax deductions — even when the not-for-profit recipient is tax exempt and the donor itemizes. Take “quid pro quo” donations. These transactions occur when your organization receives a payment that includes a contribution and you provide the donor with goods or services valued for less than the total payment.

a hospital glove holding a pen and writing "donate" in a checkbook' image used for blog post about not-for-profit contributions being quid pro quo

Let’s take a closer look.


Continue Reading Quid Pro Quo Not-for-Profit Contributions – What to Know

As unemployment and financial insecurity become widespread during the novel coronavirus (COVID-19) crisis, many not-for-profit donors find themselves unable to provide monetary support to favorite charities. Instead, your organization may receive offers of gifts in kind (GIK) or donated services. Although you likely welcome these gifts, you may be unsure about how to record and value them.

a person forming a heart with their hands against the sun; image used for blog post about how not-for-profits can handle gifts in kind and donated services during COVID-19 pandemic

Here’s a brief summary.


Continue Reading Handling Gifts in Kind and Donated Services During COVID-19

A majority of large U.S. companies offer programs of matching gifts to boost the impact of their employees’ charitable gifts. Double the Donation estimates that $2 to $3 billion is donated through matching gift programs every year.

a small box wrapped in brown paper with blue and white starts on it sits on a wooden table; image used for a blog post about not-for-profits matching gifts to double donor contributions

At the same time, between $4 and $7 billion in matching gift funds goes unclaimed annually. Is your not-for-profit doing everything it can to claim its share of this pool of corporate gifts?


Continue Reading How Matching Gifts Can Double Donors’ Contributions

A not-for-profit capital campaign aims to raise a specific — usually, a significant — amount of money over a limited time period. Your not-for-profit may undertake a capital campaign to acquire land, buy a new facility, expand an existing facility, purchase major equipment or seed an endowment.

various arms extended to the center of the photo, with overlapping hands formed into a teamwork cheer; image used for a blog about executing a not-for-profit capital campaign

Whatever your goal, a capital campaign can be grueling, so you need to ensure stakeholders are on board and ready to do what it takes to reach it.


Continue Reading How to Execute Your Not-for-Profit’s Capital Campaign

It’s never easy to say “no” to a generous donor. But a gift acceptance policy can make the decision and process easier. When you receive a personal gift from a friend or family member — even if it’s not something you particularly want — you accept the gift and thank the person. The same isn’t always true of gifts given to your not-for-profit.

a gift wrapped in brown paper tied with a pink bow to signify a gift acceptance policy for not-for-profit organizations

Why? There are many reasons, from space limitations to unsuitability to your mission. Gifts should be examined, and, possibly, refused.


Continue Reading Creating a Gift Acceptance Policy for Your Not-for-Profit

Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m here again with Nicole Riley, an Audit Senior Manager and one of the faces of the PKF Texas Not-for-Profit team. Nicole, welcome back to The Playbook.

Nicole: Thanks. Thanks for having me.

Jen: So, we’re touching on topics important to not-for-profits. Accounting departments and development departments are two really critical components of a not-for-profit organization. How do you facilitate cooperation between the two departments?

Nicole: As you mentioned, they really are critical components of an organization, and when they work together well it can really benefit an organization.


Continue Reading Why Accounting and Development are Critical to Not-for-Profits

Restricted gifts — or donations with conditions attached — can be difficult for not-for-profits to manage. Unlike unrestricted gifts, these donations can’t be poured into your general operating fund and be used where they’re most needed. Instead, restricted gifts generally are designated to fund a specific program or initiative, such as a building or scholarship fund.

It’s not only unethical, but dangerous, not to comply with a donor’s restrictions. If donors learn you’ve ignored their wishes, they can demand the money back and sue your organization. And your reputation will almost certainly take a hit. Rather than take that risk, try to encourage your donors to give with no strings attached.


Continue Reading How to Persuade Donors to Remove “Restricted” from Gifts

If you’re like many Americans, letters from your favorite charities have been appearing in your mailbox in recent weeks acknowledging your 2018 year-end donations. But what happens if you haven’t received such a letter — can you still claim an itemized deduction for the gift on your 2018 income tax return? It depends.

Basic Requirements
To support a charitable deduction, you need to comply with IRS substantiation requirements. This generally includes obtaining a contemporaneous written acknowledgment from the charity stating the amount of the donation, whether you received any goods or services in consideration for the donation, and the value of any such goods or services.


Continue Reading Charity Donation Letters May Affect Your 2018 Income Tax Return