Donation Acknowledgement LettersAll Schools
Contributions made to 501(c)3 organizations are tax-exempt. This is an incentive to encourage potential donors to give to these organizations, so tax-exempt status must be well guarded. Compliance with 501(c)3 guidelines is required to maintain tax-exempt status.
Any single contribution to your PTO of $250 or more must be acknowledged by a letter from your PTO to the donor in order for the donor to claim it on their tax return by January 31st of the following calendar year. CDSP recommends mailing it within 30 days. The donor will use this letter to prove that the contribution is tax-deductible. The letter should include the name of your organization, date and amount of the contribution, state that you are a 501(c)3 organization and that no goods or services were received in exchange for your contribution.
For single donations of goods, including unreimbursed expenses, of $250 or more, rather than cash, the letter should include the name of your organization, date and description of the items contributed, state that you are a 501(c)3 organization and that no goods or services were received in exchange for your contribution. The value of the donation should be determined by the donor.
For “quid pro quo” contributions (contributions where the donor is getting something in return for their money), your PTO must specify how much money is tax-deductible. For example, if tickets to a PTO sponsored dinner are $75, but the cost of the dinner is only $30, the purchaser is eligible to deduct $45. The information must be disclosed and can be printed on the ticket or the brochure/invite for the event.