Several volunteers for our 501(c)(3) dog rescue help transport dogs in our vans from shelters, underwrite the veterinary medical expenses for rescue dogs sometimes costing more than $1,500, or pay for the costs of other vendors. None of these payments go through or directly to the dog rescue. Rather, the volunteer pays for gasoline, pays the vet or other vendor directly. Does the IRS require an acknowledgement from the charity to claim a deduction? —From the Website.
A donor to a charity may claim a charitable contribution deduction for gifts made to or “on behalf of” a charity. If the payment is $250 or more, the donor must obtain a “contemporaneous written acknowledgment” from the charity stating how much was paid, whether any goods or services were received in return, and if so, the value of those goods or services. The acknowledgment has to be received by the due date of the return on which the deduction is claimed. (See Ready Reference Page: “IRS Requires Substantiation of Contributions”)
A volunteer paying for gas for your van is not likely to exceed the $250 limit for a single fill-up and would not need the acknowledgment. The $250 limit applies to each payment separately, so even multiple payments of less than $250 each would not create the need for the acknowledgment. But the donor does need to keep a record to prove the payment, or payments, if questioned by the IRS. A volunteer paying $1500 to a vet for medical care in a single bill needs the acknowledgment from the rescue.
Most charities who are aware of payments on their behalf will issue a thank you and acknowledgment even though the charities themselves are not required to issue the acknowledgements (unless the gifts are “quid pro quo” gifts of more than $75 where the charity provides more than minimal goods or services in return). Saying thank you to your donors and assuring they have the acknowledgments they need (even if they don’t know it) is good practice.
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