Page 163 - Washington Nonprofit Handbook 2018 Edition

The Postal Service sends announcements and other information to
authorized nonprofit organizations from time to time. It also conducts occasional
training and information sessions and participates in meetings for mailers and
other interested parties. Once an organization has been authorized to mail at
nonprofit rates, these informational mailings and invitations are sent automatically.

Resources:

• Nonprofit USPS Marketing Mail Eligibility (Publication 417) has detailed
instructions on applying for authorization to mail at nonprofit rates
and the types of mail that can be sent. The text is available on the
Postal Service website at https://pe.usps.com/text/pub417/welcome.
htm.

• Application for Nonprofit post rate. A blank Postal Service Form 3624
is available at http://about.usps.com/forms/ps3624.pdf.

CHAPTER 48. Requirements for Deducting Contributions

A charitable contribution is deductible by the donor only if the donor and the
donee organization (the nonprofit receiving the donation) follow certain verification
procedures. While the majority of the burden to “substantiate” a charitable
contribution falls on the donor, the donee organization has certain responsibilities
of its own under the substantiation rules. This Chapter addresses the following
topics: (a) the confirmation that the donee organization is qualified to receive
deductible contributions; (b) the substantiation requirements for donors; (c) the
“contemporaneous acknowledgment” requirement for donee organizations; (d) the

“quid pro quo contribution” disclosure requirement for donee organizations; (e) the
information return filing requirement for donee organizations selling contributed
property within three years of receipt; and (f) gifts of property, including vehicles.

a. Donee Organization Must Be Qualified

To be deductible, a contribution must be made to, or for the use of, a
qualified organization and not set aside for use by a specific person. A taxpayer
claiming a charitable deduction has the burden of establishing that the donee
organization is qualified to receive deductible contributions. Rather than compel
donors to rely on the organization’s statements or to prove independently that it is
a qualified recipient, the IRS issues a Cumulative List of Exempt Organizations (IRS
Publication 78).

WASHINGTON NONPROFIT HANDBOOK -152- 2018