In general, quid pro quo donations occur when a not-for-profit receives a contribution of more than $75 and it provides the donor with goods or services valued at less than the donation amount. These arrangements create reporting obligations for your nonprofit. You must give written notice to donors that they can deduct only the amount in excess of the value of goods or services they receive. Also give donors good faith estimates of their value. You don’t need to provide written notice if you give donors token gifts or certain membership or intangible religious benefits. Contact us with questions.
