Charitable Acknowledgement Letters... Why You Need It.

According to IRS Publication 1771, Charitable Contributions - Substantiation and Disclosure Requirements, donors must have a written acknowledgement from the 501(c)3 nonprofit that receives their donation in order to claim a tax deduction for each non-cash charitable contribution that exceeds $5000. 

The IRS states that written acknowledgements of charitable contributions should include the following:

• Name of recipient nonprofit
• Amount of cash donated OR a description (omitting the estimated amount) of the non-cash contribution received
• As applicable:
• A statement that the nonprofit did not provide any goods or services in return, if that was the case
• A description and good-faith estimate of the value (not cost) of any goods or services the nonprofit provided in return (for example, the market value of an event ticket)
• A statement that the goods or services provided by the nonprofit in return for the contribution were entirely intangible religious benefits, if that was the case

FAQs

Can I use my automated transaction receipt from Overflow as my charitable acknowledgment letter?

No. That automated transaction receipt is simply to note the details of your transaction for your records. The receiving nonprofit will eventually send you a charitable acknowledgement letter for your gift that is IRS-compliant, once they receive it!

When will I receive my charitable acknowledgement letter?

The nonprofit you donated to will send you a charitable acknowledgement letter after receiving your stock donation. Most nonprofits send out acknowledgment letters within 30 days of receiving your stock donation. 

*Note that you will not receive it immediately as the date noted in the letter must be the date that the nonprofit actually received your donation.