As a charitable nonprofit you rely on the support and generosity of donors for some or all your funding. While some of you are still using traditional giving methods, online giving has become the “new norm.” Here is the best way to encourage online giving.
Transitioning from traditional to online fundraising is simpler than you might think; plus it will increase your donor base from just your local community to national.
How To Create Online Fundraising Your Donors Will Love
Implement Online Giving
We spend hours on our cell phones or tablets each day, so it is safe to say technology reigns supreme. If you are not already using online fundraising, you are missing out on a major opportunity.
As a nonprofit organization, it is critical to invest in simple online giving methods. Consider having a mobile version of your website created and utilize easy online donation programs such as PayPal, Square [Cash App is great too!], Givelify, etc.
Keep Your Donation Form Short
Let’s be honest; no one wants to spend half an hour trying to donate to your organization. Simplify your donation form and eliminate unnecessary fields.
Typically donors will only briefly scan your donation forms before deciding to give. If your form appears long, extensive, and complex, you may be losing out on potential donors.
Test your platform. Ask a friend or third party to complete the form themselves to see what they found confusing, time-consuming, and flat out annoying. You have seen your donation form a million times, and you understand all the information asked. However, having someone unfamiliar with your donation process will gain a better understanding of what the average donor sees.
Easy Access To Online Donation Form
The easier it is to access, the easier it is for people to donate.
Accessing your organization’s online donation platform should be a piece of cake for potential donors. If they have to go on a scavenger hunt to find a way to donate, they will likely give up in pursuit.
Large, colorful and clear “DONATE” buttons are always the way to go. Consider having a donate button at the top and bottom of your website or page, but do not go overboard with the donate buttons. The last thing you want to do is harass your potential donors and readers for an online donation.
Close With A Strong Call To Action (CTA)
Now that you have driven potential donors to your organization and informed them of the great things you do in your community, prompt them to donate.
This can be done through a “Donate Now” button or link that instruct donors on how they can make a difference such as, “Help Us Make A Difference In Your Community!”
Believe it or not, there are thousands of people that are looking for a charitable cause to donate to each year. Utilize these tips to attract potential donors and maintain your much-needed donor base. Once you have received donations be sure to keep accurate records so you can accurately file your 990 Form with ExpressTaxExempt at the close of your organization’s tax year.
If you’re a leader with a big voice like I am, getting everyone’s attention is easy; it’s keeping their attention and communicating effectively that can become the problem. Whether you have a loud or soft, sweet voice, the way you communicate as a leader for your organization can affect the outcome of your nonprofit.
Our aim at ExpressTaxExempt is to help you and your nonprofit organization grow so that you can continue making a positive difference in your community. Here are a few keys to effective communication that will benefit your non-profit organization:
How To Gain Effective Communication For Non-Profit Organizations
1) Inform, Explain, Clarify
As a leader have you ever felt misunderstood by those, you work with or lead? When you make an announcement, everyone seems to be on the same page but two days later (or even sooner) you are confronted with 5000 questions?
If this scenario often occurs you may need to rethink your communication skills and adjust them to best suit those that you lead. What makes sense to you might not “click” with them. This three-step process has helped me tremendously throughout the years;
Inform - Always inform your team promptly. Communicating information at the last minute opens the door for confusion and a lack of understanding among individual members of your team.
Explain- Depending on your leadership style you may or may not be the type to share all of the details; which is fine. Whatever information you do decide to share, be prepared to explain it in detail to your team. The more they know in [certain] situations, the better.
Clarify- It never hurts to clarify information that you have shared with your team. At the end of the day, you are human just like they are. Mistakes happen! If you misspeak or failed to make something clear, simply clarify it and move forward.
2) Servant Leadership: Become More "Hands-ON"
To lead others well, you must serve first.
Of course, we are not referring to serving your team a meal (although treating your volunteers to a meal is always a kind gesture). Servant leadership is a timeless concept that helps with effective communication skills, by focusing on the growth and well-being of individuals and communities to which they belong.
Take time to labor among those you volunteer with. Talk to your team. Help volunteers with tasks you have assigned. Go where the work is happening. Being present and active will show your team, as well as potential donors, the amount of passion you have towards your organization’s mission and want to help others.
3) Maintain Open Dialogue With Your Team
Keeping an open line of communication is vital to building and sustaining an active relationship with your team, volunteers, donors, and community. Exceptional communication is achieved in various ways and can be accomplished easily. Here are some options that you can implement with your non-profit organization:
Team - Schedule weekly or bi-weekly meetings with your team and volunteers to discuss any upcoming projects or initiatives of your nonprofit organization and brainstorm new ideas. Meetings are also a great time to spark conversations and have dialogue that will strengthen your team. Allow your team and volunteers to share their opinion and feedback; take what is shared and use it to better the organization.
Donors - Donors want to know where their donations are used. Based on the relationship with your donors you should determine how often you correspond with them to provide updates regarding your organization. This correspondence can be as simple as an email or creative as a monthly or quarterly newsletter. Staying in touch with your donors will considerably affect your nonprofit organization and the donations it receives.
Community - Just like donors, the community wants to know about your efforts as well. Word of mouth is still one of the best marketing tools! Residents of your community will inform others about your nonprofit organization, volunteer to help, and lead individuals that could need your services in your direction so they can receive the help that they need.
TIP: The more you inform your audience, the more support you will receive!
Use these three keys to achieve and maintain effective communication skills within your nonprofit organization. If you have any tips to share, ExpressTaxExempt would love to include them. Comment below and let’s all grow together!
Don’t forget to communicate with your team the importance of filing a 990 Form annually to keep the organization’s tax-exempt status intact. ExpressTaxExempt will help you remain tax exempt and free from IRS penalties.
Let’s be completely honest, donors are a nonprofit organization’s best friend!
Without donations from philanthropic individuals, businesses, and organizations, it is extremely difficult to effectively carry out the work of your organization.
Forming a good relationship with a donor can benefit your nonprofit organization significantly and allow you to help even more people in your community by connecting with a philanthropist.
Here are 10 ways to improve relationships with a donor:
10 Ways Your Nonprofit Can Improve Donor Relationships
What does it take to establish a good rapport and working relationship with a philanthropist or donor? It has to be more than a nicely written email or monthly newsletter, right?
Several of our clients shared their “secrets to success” when it comes to creating and maintaining a positive nonprofit-to-donor relationship. Being honest, transparent, authentic, trustworthy, and patient are characteristics that go furthest with a potential donor.
Once you have embraced these characteristics it’s time to put them into action. This can be done in 10 ways:
1) Take Risks - GO FOR IT!
2) Maintain open communication
3) Listen & Learn
4) Find common interests and build on them
5) Do a follow-up call or send a nice note after your initial meeting
6) Help promote their company at hosted events or online (social media/website)
7) Be interactive and open to feedback
8) Refrain from being defensive
9) Educate donors of your nonprofit organization
10) Be strategic
Utilize these characteristics and put them into action to help you grow as a nonprofit organization leader but also improve the overall reach and financial support of your beloved organization.
What To Do After You've Gained Donors
Once you’ve built a rapport with the donor(s) that you’ve been looking for, don’t forget to file your annual 990 Forms with ExpressTaxExempt. The last thing we want you to do is to gain a bunch of new donors and then lose your tax exempt status. ExpressTaxExempt will help you remain tax exempt and free from IRS penalties. Create an account or sign in today to handle your nonprofit organization’s tax filing needs.
What are some ways that you have attracted and kept a donor or philanthropist engaged over the years? Comment below so we can add them and share with others 😊.
Today, we recognize #GivingTuesday, a social movement which encourages others to give back by donating time, money or positive influence to a worthy cause that makes a difference. Generous efforts such as donating blood, providing financial support to a local organization, visiting a nursing home, or even helping out at a soup kitchen can touch the lives of many.
Even large organizations such as PayPal have “seized the season” and partnered with its users to celebrate the #GivingTuesday initiative, adding 1% of all donations made through their portal from now until the end of the year.
Since we’re talking about donating to charity, we’d love for you to share with us ways that you will donate! Are you a part of a charity or nonprofit organization who could use some donations to support the mission of the organization? If so, post the group name and information in the comments so other readers can donate!
For tax-exempt organizations, donations are a major component to its success and level of outreach. Thankfully, taxpayers have the ability to maximize their tax savings before the end of the year by giving to a charity and deducting it on their annual federal income tax return.
#GivingTuesday Tax Filing Reminders
With #GivingTuesday being an annual event, there are some reminders that taxpayers should be reminded of as they give money or good to an exempt charity or organization before December 31.
Donations to Eligible Organizations (Only) are Tax-Deductible
Churches, synagogues, temples, mosques, and government agencies are eligible to receive deductible donations. For a complete list of eligible organizations, click here.
Itemize to Claim Charitable Donations
Charitable deductions cannot be made if an individual chooses the standard deduction. Taxpayers must itemize their donations on Form 1040 Schedule A to claim deductions for charitable contributions.
Have Proof of Monetary Donations
Upon making a donation, be sure to receive a bank record or a written statement from the charity/organization to prove the amount and date given. Taxpayers using payroll deductions should retain a pay stub, a Form W-2 wage statement or other proof showing the total amount withheld for charity, along with the pledge card showing the name of the charity.
Donating Property
Donating items such as clothing and other household items come with a deduction amount that is normally limited to the fair market value of the item. These types of items must be in good or better condition to be considered tax-deductible.
Similar to monetary donations, those that donate property must get a written acknowledgment from the charity for all gifts that are worth $250 or more. This statement should include a description of the items contributed.
What Happens After You Donate?
Once you’ve donated and received the necessary paperwork for your deduction, all that’s left to do is simply file your annual tax return. However, tax-exempt organizations have a few more steps to take such as filing their required Form 990 each year.
Exempt organizations are required to file this return to ensure that their organization is not abusing its tax-exempt status. The IRS also utilizes the information reported on Form 990 and makes it available for public information.
Luckily, exempt organizations can handle all of their Form 990 filing needs right here at ExpressTaxExempt with our easy, simplified filing process, and can even instantly share their information with GuideStar, the world’s largest source of nonprofit organization information.
Give, Give, Give!
The ExpressTaxExempt team encourages you to take some time this holiday season and give back in some way in honor of #GivingTuesday. Once again, feel free to comment on ways that you or your organization are helping out today and days to come as well as providing your organization's information to gain support from fellow ExpressTaxExempt users.
On Friday, August 25th, the catastrophic storm, Hurricane Harvey, slammed onto the shore of southeastern Texas as a Category 4 hurricane and has since weakened to a tropical storm as of Saturday. Many of us have seen the heartbreaking effects that Hurricane Harvey has had and wonder how we can be of assistance to help those that were affected, recover from the disaster.
Our ultimate goal and aim at ExpressTaxExempt is to be a resource to all nonprofits and support the enrichment of communities worldwide. With respect to those affected by Hurricane Harvey, we have provided a listing of philanthropic opportunities for both nonprofits and individuals to donate/give to. We encourage you to browse through the various causes listed below and help our brothers and sisters in Texas.
Monetary Donations
Red Cross - The American Red Cross is working around the clock to help those whose lives have been devastated by Tropical Storm Harvey. Donations can be made online or by phone at 1-800-RED-CROSS. You can also text “HARVEY” to 90999 and make a $10 donation through your mobile device.
The Salvation Army- The Salvation Army provides physical, emotional and spiritual care to the survivors and relief workers of Hurricane Harvey. They currently have disaster teams from across the country working in the treacherous waters and have response efforts in place for long-term disaster recovery efforts. Visit their website to make an online donation of $25.00 or more. Donations can also be made by mail or phone. City of Houston Relief Fund- The Mayor of Houston, Sylvester Turner has established a relief fund administered by the Greater Houston Community Foundation that will accept tax deductible flood relief donations. For more information on how to donate by credit card, check/money order, or transfer cash by wire, click here.
Save the Children - This organization focuses on the most vulnerable by providing items such as cribs and shelter to displaced children. For ways to support the Hurricane Harvey Children’s Relief Fund, visit the Save The Children website.
Volunteer Opportunities
Samaritan’s Purse - The Samaritan’s Purse currently has 2 disaster relief units in Texas helping residents through the rain, flooding, and destruction caused by Hurricane Harvey. They will soon have a total of 5 tractor trailers in the state to assist those affected. Click here to donate. Volunteers are also needed...thousands to be exact. Visit their Volunteer Network to sign up and receive updates on details and needs.
Heart to Heart - Heart to Heart International deploys a team of highly qualified responders equipped to rapidly respond as a self-contained mobile medical team. Volunteers are being recruited in the following fields: nurses, physicians/midlevel providers (Emergency Medicine, General Practitioner, Family Medicine, Pediatrics), EMT/Paramedics, Physical Therapists, Mental Health, Logistics, Administration, and Security. Find out more information here.
Share This Post
Please help us help others by sharing this post with at least 2 people to increase the support that Hurricane Harvey victims will receive. Recovery from a disaster is never easy, so the more help they receive, the better! Also, if you know of other donation opportunities, comment below and we can add them to the list!
Other Ways to Donate:
Feeding Texas - Feeding Texas serves alongside state and federal relief efforts when disasters strike the state of Texas. If you or someone you know is in the state of Texas, they can donate food items such as pop-top meat/fish, powdered milk, cereal, canned fruit, fruit cups, peanut butter and jelly as well as cleaning supplies to a local food bank in Houston, Galveston, and other areas. Monetary donations are always welcomed also. Visit the Feeding Texas website for a list of local food banks and contact information.
United Airlines - Airplane carrier United Airlines is offering up to 1,000 bonus miles to MileagePlus members who donate to relief efforts on its fundraising page. They will also match the first $100,000 donated. If you donate $50-$99 you will earn 250 bonus miles and $100-$249 will get you 500 bonus miles. Visit United Airlines Fundraising Page to donate.
Shelter
Airbnb - Airbnb has created an Urgent Accommodations site where evacuees from the storm can find shelter and all service fees are waived for those affected by the disaster that check in between August 23, 2017 and September 25, 2017. If you need a place to stay or have a home in that area that you would like to add to their database, click here.
Animal Relief
SPCA of Texas - The SPCA of Texas is providing disaster relief to pets affected by Hurricane Harvey. A large team of their staff and volunteers have already set up a temporary animal shelter near the mega shelter in Downtown Dallas and are working in conjunction with city and county disaster officials. Click here to support their efforts.
About ExpressTaxExempt
ExpressTaxExempt respects the services that exempt organizations provide to communities and serves as the premier hub for everything tax exempt. Our service is dedicated to providing the best and most efficient e-filing experience for tax-exempt organizations, no matter how big or small. For more information about ExpressTaxExempt, visit our website. If you need help with tax exempt e-filing, contact us Monday through Friday, 8:30 a.m. to 5:30 p.m. EST at (704) 839-2321 and through live chat on our site. We also offer 24/7 email assistance at support@ExpressTaxExempt.com.
Nonprofit organizations serve a great purpose and make a difference in the community daily. In order to stay both active and effective, nonprofits have to attract supporters to their cause and then convert those supporters to become donors or members that will support their work.
Although nonprofits serve a great purpose, they are faced with various challenges along the way. Thankfully, there is always a way to turn those challenges into opportunities. We’ve listed some of these challenges and provided you with some tips on how to turn them around and make it work for your organization:
Nonprofit Challenges
1) Retaining/Engaging Donors
Without donors, nonprofits cannot survive. The organization-to-supporter relationship is very important. Today’s donors do not want to think that all you want from them is their money. Rather than asking for money right away, find ways to engage conversations with supporters and give them an opportunity to get to know your organization and build an emotional attachment to your work and mission. These are some good ways to keep donors invested:
-Keep them engaged and let them know that they are part of the team. Let them know that they are an integral part to the organization.
-Let donors know where their money is going and what it is supporting. Give monthly or quarterly updates via email or newsletter.
2) Lack of Resources
When finances are limited and resources are scarce, it is beneficial to form partnerships with other organizations that have the similar mission and goals. By forming and fostering these relationships, you can achieve more on a larger scale. Remember, there is strength in numbers.
3) Adequate Funding
Acquiring the necessary funds to adequately operate your organization in its full potential may be a bit of a challenge for some groups. Organizations can solicit funding from foundations, corporations, grants, and philanthropic individuals. Reaching out to local businesses in the community along with community leaders for sponsorships or donations.
4) Public Awareness
New non-profit groups or organizations that may not be well known in their community yet should put focus on increasing awareness about who they are and what they do. Implementing an online marketing campaign/strategy will allow for your organization to be promoted to a larger audience and can also draw the attention of potential funding sources. Utilizing social media platforms like Facebook, LinkedIn, Twitter, Instagram, and more, will also be very beneficial in reaching larger audiences.
5) Printed Communication
The days of paper-based marketing and sales are slowly, but surely fading away. For many years, organizations depended heavily on direct mail serving as their main point of contact with current and potential donors. Although direct mail still brings in some money, it mainly targets just one age bracket, which is age 55 and over and makes it quite difficult to track who opened and read the mailer that was mailed.
The best way to solve this problem is to move online. Instead of sending letters, send emails with an intriguing subject line and include the information that you’re trying to disseminate. Also, if your organization has a website, you can add a “Donate Now” button to your home page which will allow donors to give online. Having the capability to receive donations online can also encourage donors to set up automatic payments and donations towards your organization each month. Plus, millennials are more prone to make donations via text or online if they are contacted through that medium.
How To Maintain Tax-Exempt Status
In order to remain as a tax-exempt organization or to receive tax deductible donations to sustain the operation of your organization, you must in good standing with the IRS. This status can be maintained by e-filing with ExpressTaxExempt. Within minutes you will be able to successfully e-file one of the forms including in our Form 990 Series or our latest release for political organizations, Form 1120-POL.
Feel free to contact our support team of e-file experts at 704.839.2321 if you have any questions or need help with your e-filing experience. We’re here to assist you Monday through Friday from 9 a.m. to 6 p.m. EST or feel free to reach us 24/7 via email at support@ExpressTaxExempt.com.
At ExpressTaxExempt we respect the services that nonprofits, charities, and exempt organizations provide to their community. These groups help so many from day to day, so “now let us help you!”
As expected, most nonprofit organizations and charities aim to receive donations and contributions from generous givers to support their philanthropic endeavors. One may ask, “Why would a tax company be concerned with donations?” To answer that question, all contributions and donations to an organization qualified by the IRS can be deducted from your tax return when filing. For those that are in charge of collecting donations for your organization(s), this is a great interesting fact to share with your potential donors.
We’ve listed some tips here for you and your donors to utilize to ensure that your contributions will positively pay off during tax filing and tax return season.
TIP #1: Make donations to a qualified organization. Deductions on your tax return cannot be made to specific individuals, political organizations and candidates.
TIP #3: Benefits received from contributions, such as merchandise or tickets to a game, can only deduct the amount which exceeds the market value of the received benefit.
TIP #4: Non-cash property or stock donations are usually valued at fair market value. Clothing and household items should be in good used condition or better in order to be deducted.
Fair Market Value: The agreed price at which property would change hands between a willing buyer and seller.
TIP #5: Regardless the amount, a bank record or payroll deduction record must be maintained for a contribution of cash, check, or other monetary gift. Written communication from the organization [that received the donation] with the name of the organization stated along with the date and amount of the contribution will also suffice for verification purposes.
TIP #6: For contributions of cash or property equaling $250 or more the following must be provided to claim a deduction:
Bank record
Payroll deduction record
Written acknowledgement from organization
**One document may satisfy these requirements**
TIP #7: If the total deduction for all non-cash contributions for the year is over $500, an
IRS Form 8283 must be completed and attached to your return.
TIP #8: Donating items or a group of similar items valued at more than $5,000 must also complete Section B of Form 8283, which will more than likely require an appraisal by a qualified appraiser.
Whether you are responsible for collecting donations for your charitable or nonprofit organization or considering to make a donation, ExpressTaxExempt is here to help you each step of the way and provide beneficial content for you and your organization. Also, be sure to visit ExpressTaxFilings for your personal e-filing needs as well as ExpressExtension to be granted extra time to gather all necessary information. If you need any help at all with the filing process, don’t hesitate to give us a call. We’re available Monday through Friday, 8:30 a.m. to 5:30 p.m. EST, at (704) 839-2321 and through live chat on our site. We also offer 24/7 email assistance at support@ExpressTaxExempt.com.
One of the most tedious tasks when filing Form 990 or a 990-EZ is entering list after list of donor information and their contribution amounts.
Many tax-exempt organizations receive hundreds of donations from individuals and groups each year and reporting them one by one consumes too much time.
IRS-authorized ExpressTaxExempt offers features which streamline your filing experience so you can e-file Form 990 as quickly and smoothly as possible. One of those features is our Bulk Upload option designed for exempt organizations who take in many donations throughout the tax year.
Upload Every Contribution at Once
Mid-size and large organizations have the option to upload their received donations by using the “Bulk Upload” button from the “Contributions, Gifts, Grants, and Similar Amounts Received” section.
By bulk uploading your organization’s contributions, you can continue filling out the rest of your tax return while ExpressTaxExempt loads all the donor information into your account.
Simple Steps to Upload
Uploading your contribution lists is quick and easy with these steps:
1. Download pre-made excel template
2. Enter your donation entries in the template and save
3. Upload your saved excel file from your computer
You can also upload your own contribution spreadsheet if you have one already completed. Make sure your column headings match the required information that our application asks.
Schedule B Filings
ExpressTaxExempt automatically generates your Schedule B and pre-loads your contributions onto it. Remember, the IRS General Rule states to only list singular donations that are at least $5,000. And while you can enter or upload every contribution, our service will only place the entries that are $5,000 or greater as per IRS rule.
Contact our live US-based team of e-file professionals for any questions or need assistance with reporting contributions for your 2016 Form 990. We’re available at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST or send an email 24/7 to support@ExpressTaxExempt.com.
Like with many other nonprofits or charities, if you make a donation, you can typically deduct the value of your contribution from your annual tax bill.
To do so, the nonprofit group you’re giving to must be officially recognized by the IRS as a section 501(c)(3) organization. You can check an organization’s tax-exempt status by searching the IRS Exempt Organization Select Check.
Are Donations to Animal Rescue Shelters Tax Deductible?
When you’re filing, you will also need to itemize the amount of your donation - this may not be worth the extra effort if you only gave a little here and there. But if you gave a significant amount throughout the year, it is best to itemize the deduction on your personal tax return.
Here are 3 things to consider when donating to an animal rescue shelter:
1. Pet Adoption vs. Donation
A common misconception most people make is thinking that payment for adopting from an animal shelter is the same as making a donation. Only donations in which the donor receives no goods or services in return can count towards a deduction.
In this case, you’re giving money in exchange for your pet - that's more of a service charge rather than a charitable contribution. However, if you paid over the cost of adoption or gave a gift outside of the adoption transaction, that counts as a valid charitable contribution.
2. Donation Value
If you’re donating items, you’ll need to estimate the fair market value for each of those items. There’s no one particular method for finding fair market values - you can look through local shops or online stores to figure out prices of similar items in the open market. For special unique gifts, such as a hand-woven, nap basket for kittens, you can get it appraised for the market value.
3. Written Proof of Donation
When you’re donating to an official 501(c)(3) organization, it’s common practice to receive a physical receipt for your donation. If your total contribution amount is at least $250, the IRS requires you to submit proper documentation along with your tax return. Like other receipts from nonprofits or charities, it should contain the description of the contribution and the amount along with the name and address of the organization.
If you received a gift or benefit from the animal shelter in return for your donation, include a description of the gift on the written receipt. Any reciprocated gifts with a monetary value should be subtracted from the amount of your contribution when reporting. A paper certificate or “Thank You” card typically don’t have cash values, but a coupon or gift card does.
Animal rescue shelters can report received contributions over $5,000 to the IRS by using a Schedule B along with their Form 990 or 990-EZ tax return. Taxpayers that want to claim an itemized deduction for their donations to an animal shelter can complete a Schedule A with their IRS 1040 form.
One way to reduce the clutter around your office or home is to donate any old books you have to your local library - not only are you giving to a great cause, but you could also be lowering your annual tax bill.
Because the federal government classifies most libraries as nonprofit educational institutions, they are qualified charities that can receive tax-deductible, charitable contributions.
You can find information about your local library’s tax-exempt status through the IRS charity database, or speak with the library’s administrator. Here are some tips about donating books to a qualified, tax-exempt library:
Valuation of Books Under normal circumstances, the IRS allows you to deduct the fair market value of your donated books. There aren’t many federal rules about what comprises a fair market value of an item; it’s typically an agreed price in the open market that’s considerably lower than the original value.
You can search second-hand shops or online stores to find prices for similar used items. In exceptional cases, your book may be worth more than fair market value. For instance, the author signed the cover or a page. You may want an appraisal for the book’s actual value.
Proper Recordkeeping Like many other deductions, you need to provide proof to claim the credit. According to experts, if your contribution is less than $250, the library should give you a receipt displaying its name and address, the date you contributed, and a description of your donation. Your personal record should list the description along with how much you paid for the books and their fair market values.
With donations over $250, your receipt from the library needs to include any benefits or gifts given in return for your contribution. If your “Thank You” gift has monetary value, the IRS requires you to deduct the amount from the value of your donation. And any contributions totaling over $5,000 in books requires an appraisal for the fair market value.
Itemize Your Deduction To properly claim a deduction for your book donations, you must itemize what you gave. Choosing standard deductions depends on your filing status and the standard changes for inflation each year - you typically want to itemize deductions if the amount is going to be larger than standard. But the choice is ultimately up to you - if you only donated a couple of novels that were just lying around, it may not be worth the extra effort to itemize.
Reporting Donations and Contributions Taxpayers can report the value of their book donations on Schedule A, Line 17 of their personal tax return. If you’re donating a substantial monetary value, you may need to file additional forms and include an appraisal signature. For libraries reporting their received contributions, you can list donations worth $5,000 or more from any one donor on the Schedule B of your annual 990 form.
Taxpayers can claim deductions towards their annual tax bill from donations they make to recognized 501(c)(3) organizations. Qualified 501(c)(3) groups typically include nonprofit schools operating solely for literary and education purposes.
But if the school significantly participates in activities that are unrelated to its charitable purposes, then the donation may not be tax deductible.
Here are some relevant guidelines from the IRS about donating contributions to your local nonprofit schools:
Value of School Donations When filing your personal taxes, you can deduct the monetary value of cash or items you donated to a nonprofit school during the tax year. The process requires you to determine the fair market value of the donation on the day you gave it away.
There are various ways to find the valuation based on the type of item, and while the IRS won’t endorse one method over the other, they firmly state that the value must accurately indicate pricing that the item could sell for in an open market. An example would be donating clothes - you could check local thrift shops to find out how much the clothes would sell for or find prices from online stores selling similarly conditioned clothing.
Receiving Benefits from Nonprofit School If the school gives you a gift or some benefit in return for your contribution, then the IRS requires you to reduce the value of your donation by the value of the gift you received from the school. The gift may be something of little to no monetary value such as a certificate, card, or plaque - in such a case, you won’t have to reduce your donation. But if the school happens to give you a $50 shopping card, you’ll need to subtract that amount from the value of your contribution.
Proof of Contribution and Penalties Beware of filing overvalued charitable contributions. The IRS charges 20% of the underpaid tax from a valuation that exceeds 150% of its actual value and 40% from valuations exceeding 200% of normal value.
Furthermore, the IRS can deny your deduction if you don’t have proper documentation. You are responsible for maintaining a record of all your contributions - cash or items. You should have a description of the contribution and the name of the organization that received it. If your donation was cash, you should provide a bank statement, canceled check, or receipt. For large cash contributions, usually over $250, the IRS requests a written acknowledgment or receipt from the organization before deducting the donation.
Claiming tax deductible contributions towards nonprofit schools is only possible through itemizing your personal expenses. Taxpayers can claim itemized deductions on Schedule A of IRS Form 1040 if total deductible expenses are greater than standard deductions for the tax year. And for schools needing to report received contributions, you can do so by submitting a Schedule B with your IRS 990 form.
When an exempt organization files its annual tax return, it’s typically the responsibility of the principal or primary officer to complete the filing. The officer can either finish and submit the 990 form on their own or outsource the work to a tax professional or CPA.
Whatever the principal officer decides to do, it’s important for that person to provide their signature to the tax return before it gets sent to the IRS. Here is some general information about principal officers and their role in filing the form 990 series.
Who is a Principal Officer?
A principal or primary officer can have many different titles within tax-exempt groups. It can be your organization’s current President, Vice-President, Director, Treasurer, Secretary, Chief Accounting Officer, or other corporate officers - for instance, a tax or financial administrator. People who are not officers are your regular employees or volunteers.
Does a Principal Officer have Authority to Transmit 990 Form?
With a small tax-exempt organization, the principal officer is usually the President or a Director, so that person does have supreme authority to submit to the IRS once finishing the return. For larger organizations, the officer may need approval from the President or other board members before completing the filing.
With ExpressTaxExempt.com, you can use our unique “Manage Approvers and Reviewers” feature which allows you to invite prominent members to a secure web portal via email. While there, they can review your 990 form, add comments or corrections, and e-verify with their signature. Have your entire board approve without managing multiple copies or wasting precious paper.
What Filing Details are Required About the Principal Officer? IRS Form 990 and Form 990-EZ only ask for the officer’s name, title within the organization, and a daytime phone number. The IRS Form 990-N (e-Postcard) and Extension Form 8868 requests the same information with the addition of a mailing address.
If the primary officer is using a tax professional or a paid preparer to file the 990 series electronically, the officer is required to sign IRS Form 8453-EO. The form states that you are indeed an officer from a tax-exempt group and that you approve the return, and you give authorization for the preparer to file the form. It only requires the officer’s signature, date, and title within the organization.
Can an Officer File for Multiple Organizations?
If an officer is a primary member of each organization getting filed, then there shouldn’t be any issues. But if a principal officer of one group is filing on behalf of a different group without membership, then a signed Form 8453-EO is required from a primary officer of the different group.
ExpressTaxExempt.com lets you e-file for as many organizations as you need from just one account. We even generate your 8453-EO so you can print it, get the signature needed, and then upload the form into your account.
Call our U.S. - based, customer support team for any assistance needed with e-filing the form 990 series. You can reach us at 704.839.2321, Monday through Friday from 9 a.m. to 6 p.m. EST. We also over email support with support@ExpressTaxExempt.com.
Our live support specialists in Rock Hill, SC are always ready to offer professional service and assistance.
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Frequently Asked Questions
Find answers related to e-filing IRS Form 990, 990-EZ, 990-PF, 990-N (e-Postcard), Form 1120-POL and Extension Form 8868 with our Frequently Asked Questions.
