March 15, 2022 11:37 am at 11:37 am #2069354
We have been the recipient of a considerable number of receipts from various Mosdos in Lakewood and elsewhere.
Many, if not most, mosdos in Lakewood and elsewhere issue receipts that severely deficient. The purpose of a receipt is that if the IRS audits the donor he will have the necessary proof of donation.
The receipt, in order to be meaningful, must contain the phrase “No goods or services were received by the donor in exchange for the contribution”. Without that the IRS will discount the receipt. The Tax ID Number of the institution should also be included. This prevents the IRS from assuming that the donation was not given to a registered non-profit. A valid receipt must have been in the possession of the donor at the time he files his taxes. A valid receipt at the time of the audit will not be accepted.
Any institution that issued a receipt without these items, especially the “No goods etc.”, should immediately re-issue a valid receipt.March 15, 2022 12:24 pm at 12:24 pm #2069452Reb EliezerParticipant
Thank you for your PSA information.March 15, 2022 9:08 pm at 9:08 pm #2069609GadolhadorahParticipant
Great advice. Good news is that with a huge backlog of unprocessed returns from 2 years of Covid and fewer agents, there will be fewer routine (random) tax audits for most middle income taxpayers. You would probably have to be a really big baal tzadakah for the IRS audit software to flag your return for review based on unusually high charitable deductions.March 16, 2022 11:07 am at 11:07 am #2069709flyerParticipant
U technically don’t need the tax ID on it.
If u ever get audited you can always get the proof thenMarch 21, 2022 6:19 pm at 6:19 pm #2071311avrahParticipant
Perhaps a DAF, a Donor Advised Fund, is an idea for you to consider. Any money put into a DAF is considered as given to a 501c3, and you can disperse to other non-profits through the DAF. You only need the single receipt from giving the DAF. I would recommend sticking to those run by the large brokerages such as Fidelity, Schwab, and Vanguard. There are many details one should clarify if one wishes to use a DAF, but that is beyond the scope of what one should rely upon a forum for.March 23, 2022 2:36 pm at 2:36 pm #2071885
You don’t have to be such a huge “Baal Tzedoka” which I am not. Nevertheless, my tzedaka deduction was audited. Fortunately I keep detailed records. The hard part was getting those tax ID #s.March 23, 2022 2:36 pm at 2:36 pm #2071886
What I wrote was that the receipt should have the ID#; I didn’t write “must”. The part that is a must is the phrase “No goods etc.”
As a victim of an audit, I find the dereliction by so many mosdos in how they word their receipts absolutely negligent.
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