Before your charity accepts a car donation, make sure the board understands the scope of the project. An improperly run car donation program can affect a charity’s tax-exempt status. IRS oversight of car donation programs often focuses on what a charity does with the donated cars. For example, if a charity uses donated cars to …
Posts Categorized: Donations
Are Pledges Binding?
We are frequently asked whether pledges are binding. In California, for the most part the answer is no. In some other states, pledges can be binding as a matter of law. A pledge is a promise made by a donor to make a charitable contribution in the future. Even when in writing, pledges are typically …
Innovative Nonprofits Should Go Back to Basics
Move over tweens, nonprofits are taking over texting. With the help of text campaigns, charities are reaching new donors and raising more than ever. But innovative leaders of nonprofits need to remember the basics. No matter how a donation is received, donor acknowledgments should be provided. You may have first heard about the text donation …
Charitable Deduction Limitation Scare
A shock went through the nonprofit community last week when it was mistakenly believed that President Obama was moving to restrict incentives for charitable giving (which would not be surprising given President Obama’s track record). And although it now appears that this is not the case, leaders in the nonprofit sector are still concerned. The …
Can I Raise Charitable Funds for My Friends?
We are often asked whether 501(c)(3) organizations can be established to raise funds for a particular person or persons. The answer is no. This was reconfirmed by the IRS last week with the release of a letter ruling reviewing an organization established to support three special needs children. The IRS ruled that it could not …
The “Buffet Rule” Preserves Charitable Giving Incentive
If you heard President Obama mention the “Buffet Rule” during his State of the Union address last week and worried whether the incentives for charitable giving would also be restricted, we now know that they will not. On February 1, Senate Democrats introduced the first proposed rule mirroring the Buffet Rule, officially named the “Paying …