MinistryCPA Special Topic: Year-End Giving Statement Wording

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Haveyou looked at your ministry’s contribution report recently? Does it include therequired IRS statement, “No goods or services were provided in exchange foryour contribution”? IRScode Sec. 170(f)(8) provides that,to be deductible, a money contribution of $250 or more must be substantiated bya contemporaneous written acknowledgment by the donee organization thatindicates the amount and whether the organization provided any goods orservices in consideration for the contribution and, if so, a good-faithestimate of their value. In2012, a couple’s charitable contribution of more than $22,000 was disalloweddue to the omission of the statement, “No goods or services were provided inexchange for your contribution.” Although canceled checks and the churchcontribution report were produced during audit, the lack of the key phraseresulted in disallowance of the deduction and a higher tax bill for the couple. Ifyour ministry has already distributed incorrect contribution statements, newstatements should be made available as soon as possible. Corrected contributionstatements will meet the requirements if they are produced before the earlier of the tax returndue date or the date the taxpayer files his return.