Gift Acknowledgment
Not all donations to your school require a gift acknowledgment, but it's a really good idea. This gives you another opportunity to say "Thank you," and it fulfills the schools responsibility in helping the donor document the gift for tax reporting purposes.
If an individual makes a single donation that is cash of $250 or more or is property with a fair market value of $250 or more, then the donor must have a written acknowledgment from your school prior to claiming the gift as an income tax deduction.
A gift greater than $75 must be acknowledged when part of the total donation includes goods or services (e.g., purchase of a table for the school auction). Your acknowledgment letter must provide a description and good faith estimate of the value of the goods or services provided. Your letter must also tell the donor that the deduction is limited to the amount of the donation minus the value of any goods or services received by the donor.
As you can see, maintaining an accurate gift tracking database is necessary and beneficial for many reasons!
