An Administrator's Guide to California Private School Law

Chapter 19 – Fundraising

C. G IFT S UBSTANTIATION S TATEMENTS Individuals who donate goods to sell for an auction or other event may take a charitable contribution deduction for their donation. It is important to be aware that if a donor makes a gift to the school valued at $250 or more, he or she may not claim a tax deduction unless he or she obtains a contemporaneous, written acknowledgment of the contribution from the school. The school will not incur any penalty if it fails to acknowledge the contribution. However, without a written acknowledgment, the donor cannot claim the tax deduction. 2504 Although it is a donor’s responsibility to obtain a written acknowledgment, schools can assist their donors by providing a timely written statement containing the following information:  The name of the school;  The amount of cash contribution and a description (but not the value) of any non-cash contribution;  A statement that no goods or services were provided by the school in return for the contribution, if that was the case; and  If the school provided the goods or services in return for the contribution, a description and good faith estimate of the value of goods or services provided, or, if those goods or services consist solely of intangible religious benefits, a statement to that effect. 2505 If an individual donates a vehicle valued at $500 or more, schools should provide donors a timely written statement within 30 days of the sale of the vehicle that contains the following information:  The donor’s name and taxpayer identification number and the date of contribution;  Vehicle identification number of donated vehicle;

 Statement if school has or will provide any goods or services in consideration for the donation (and value of those goods or services if applicable); and  Information about the vehicle, including model, age, mileage, condition, apparent defects, and if the vehicle was operable at the time of donation. 2506

If the School proceeds to sell the donated vehicle without any significate intervening use or material improvement, the acknowledgment to the donor must also include:  The date of sale;  A certification that the vehicle was sold at arm’s length between unrelated parties;  Amount of gross proceeds from the sale; and  A statement that the deductible amount may not exceed gross proceeds of the sale. 2507

An Administrator’s Guide to California Private School Law ©2019 Liebert Cassidy Whitmore 606