Church

[Super Mom]

Help!! Will be doing donor statements soon for donations, but am sure I read on here somewhere about a required IRS wording about no benefits received or something. Quickbooks for Nonprofits doesn't have this statement on the donor form. Can't find. Am I crazy?

[DaveO]

There was a thread but I can't seem to find it. The wording is to the effect of "No goods or services were received or exchanged other than intangible religous benefits" or something like that.

[Brilliant]

look in QB menu "Non profit" "send letters to your donors" "prepare customer letter with envelope" "non profit thank you" you will find what you are looking for.

[Jiggers]

Go to IRS Pub 1771.

[Black Bart]

Well, you may

Help!! Will be doing donor statements soon for donations, but am sure I read on here somewhere about a required IRS wording about no benefits received or something. Quickbooks for Nonprofits doesn't have this statement on the donor form. Can't find. Am I crazy?

have to be crazy to be in this business, but you're probably not much loonier than the rest of us. There was a widely-discussed, relevant case last year (see these:

http://www.thetaxbook.com/view_update.asp?1=327

http://forum.thetaxbook.com/showthread.php?20492-Did-not-cross-t-or-i&p=141422

) wherein taxpayers omitted the statement to which you refer (all other aspects of the deduction were properly done). Upon audit they acquired a corrected acknowledgment, but even though the donation had actually been made and paid on time, IRS refused to allow it because it had not been done at the time of the original donation (talk about sore losers ).

[sandigi]

Contribution Statement and wording

For our church, we give a detailed contribution statement, with dates and amounts.
And funds. General offering, Benevolent, building fund, etc.
We don't include items where they have "received" something . . . like books and cd's, or youth camp.

On the statement, we write a thank you and tell them how long they have to contact us for any discrepancies in the contribution amounts. (like 90 days, so we can toss all those contribution envelopes that pile up in that box!)

Then for the IRS, we put this statement:

"No goods or services were provided in exchange for your contribution."

[Super Mom]

Thanks everyone!!

[Super Mom]

For our church, we give a detailed contribution statement, with dates and amounts.
And funds. General offering, Benevolent, building fund, etc.
We don't include items where they have "received" something . . . like books and cd's, or youth camp.

On the statement, we write a thank you and tell them how long they have to contact us for any discrepancies in the contribution amounts. (like 90 days, so we can toss all those contribution envelopes that pile up in that box!)

Then for the IRS, we put this statement:

"No goods or services were provided in exchange for your contribution."

Curious about your statement of throwing away those contribution envelopes. The secretary is under the impression that we have to keep all those envelopes for 10 years!!! Is that right if we have records of their donations in the computer??????????

[sandigi]

No

Curious about your statement of throwing away those contribution envelopes. The secretary is under the impression that we have to keep all those envelopes for 10 years!!! Is that right if we have records of their donations in the computer??????????

I can't remember where I found it, and spent the past 20 minutes searching to no avail. It was either in "Church & Clergy Tax Guide" by Richard R Hammar or in some IRS publication. But it said that if you gave notice on the contribution statement, you could toss the original source documents. I think it said a reasonable time or something like that. We were ecstatic when we found that information, and the secretary and I had a bonfire . . .

Soon, I'll be packing our 2012 church files and if I find the source of my decision, I'll update you.

Here is the paragraph I put on our Statements. You are welcome to use it!

"According to our records, this itemized statement shows your cash contributions for the calendar year. If you have any concerns about the accuracy of this information, please contact the church office. Statements not questioned within 90 days will be assumed to be accurate and we may discard the offering envelope documentation."

First paragraph is the thank you. 2nd comes the bonfire clause (tossing of the envelopes). 3rd paragraph is the "No goods or services were provided in exchange for your contributions." End it with another thank you and a blessing. Print statements and thank God.

[Super Mom]

Thanks so much Sandigi!!

[Super Mom]

I can't remember where I found it, and spent the past 20 minutes searching to no avail. It was either in "Church & Clergy Tax Guide" by Richard R Hammar or in some IRS publication. But it said that if you gave notice on the contribution statement, you could toss the original source documents. I think it said a reasonable time or something like that. We were ecstatic when we found that information, and the secretary and I had a bonfire . . .

Soon, I'll be packing our 2012 church files and if I find the source of my decision, I'll update you.

Here is the paragraph I put on our Statements. You are welcome to use it!

"According to our records, this itemized statement shows your cash contributions for the calendar year. If you have any concerns about the accuracy of this information, please contact the church office. Statements not questioned within 90 days will be assumed to be accurate and we may discard the offering envelope documentation."

First paragraph is the thank you. 2nd comes the bonfire clause (tossing of the envelopes). 3rd paragraph is the "No goods or services were provided in exchange for your contributions." End it with another thank you and a blessing. Print statements and thank God.

Ok will definitely use that next year, so for now, if I tell them 3 years is plenty and toss the rest (they have 10) is that safe? Donor records are in the computer.

[Burke]

....now, if I tell them 3 years is plenty and toss the rest (they have 10) is that safe? Donor records are in the computer.

Well, I think I would print out each year's records (at least the last 3) and keep a hard copy somewhere as a backup. Or do you have a backup elsewhere?

[Super Mom]

Secretary has a back up USB drive at her house. For all of 2012 I have it on my computer with online back up plus a USB back up in the safe.

[sandigi]

Toss the envelopes not the books

Well, I think I would print out each year's records (at least the last 3) and keep a hard copy somewhere as a backup. Or do you have a backup elsewhere?

Original Question was:

Curious about your statement of throwing away those contribution envelopes. The secretary is under the impression that we have to keep all those envelopes for 10 years!!! Is that right if we have records of their donations in the computer??????????

I think we are talking about two different things here. Super Mom asked about the "envelopes" that people put their money into each week. Then when the offering is counted, the info from the envelopes is entered into the "books" so you have a record of the contribution (name, date, amount).

Our church was sitting on boxes full of back year's envelopes, under the impression they had to save them since they were "original source" documents. The envelopes is what we toss after 90 days. The books we keep.