What must an Affiliated Organization do if it hosts a banquet or similar fundraiser?
The organization must provide a written acknowledgment for “quid pro quo” contributions over $75. A “quid pro quo” (“this for that”) contribution is a payment that is partly a donation and partly payment for goods or services. For Example: if a donor gives a charity $100 and receives a banquet ticket valued at $40. The donor has made a partial “quid pro quo” contribution – he has received something of value in return for at least part of his total. The charitable contribution is $60 and the value of the goods or service (the banquet ticket) is $40. A written acknowledgment must be sent because the donor’s payment ($100) was greater than $75. The written statement must inform the donor that the amount of the contribution is deductible for Federal income tax purposes, and must provide the value of the goods or service received. – sample wording is listed below Example of Written Acknowledgment “Thank you for your cash (or check) contribution of $100 that (organization’s name) received on
