A recent article from the National Council of Nonprofits addresses the question: Are donations made through crowdfunding sites deductible?

The Council on Foundations reports that the IRS recently addressed whether donations made to crowdfunding sites are deductible to the donor: (Content originally provided in Washington Snapshot by the Council on Foundations, which graciously granted permission to re-publish here.)

“In 1917, the first charitable income tax deduction was enacted as part of a bill that raised federal tax rates to help finance WWI. The legislative history of the bill reveals Congress’s belief that increasing tax rates could chill charitable giving, thus the need for the charitable tax deduction.

Section 170 of the Internal Revenue Code allows an income tax deduction for contributions to corporations or associations “organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes…”. Simply put, this means organizations recognized by the IRS as §501(c)(3) public charities.

Recently, the IRS sought to clarify the deductibility of charitable contributions to fundraisers on Kickstarter-like websites, because these methods of fundraising are widely used today by organizations and individuals alike. The IRS clarified that a tax deduction may be available for certain contributions to personal fundraising websites like Gofundme.com. On June 16, an IRS official announced that donors to charities that fundraise through these websites could claim a deduction on their contribution, provided the donation is to a §501(c)(3) organization that has the discretion as to how to use the donation, and it is not earmarked toward a particular individual or family.”

More information about crowdfunding for nonprofits.

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Nonprofit Cyber Security Risks

by Karen Revels, Program Manager, Rollins College Philanthropy & Nonprofit Leadership Center

As a nonprofit, we love when the news picks up a feature story about our cause, our programs or a human interest story that relates to the impact we make in the community.  However, not all news coverage is good coverage.  Think about the cyber security nightmares that are in the news frequently from corporate America: Home Depot, Apple, Sony and others; data breaches of our personal information.  These data breaches are far reaching and continue to be a cause for concern.  The news stories about those instances are not positive.  Fingers get pointed and customer satisfaction declines.

As nonprofit organizations, the next news story related to cyber security could be about our industry.  We don’t want to read about a nonprofit organization having donors’ credit cards compromised or confidential information about the clients we serve being stolen.  That would impact the entire sector and the trust we have established with our donors.  This is a real risk and one that the nonprofit community needs to spend time discussing and managing, before it becomes newsworthy.  Your reputation depends on it.    This article discusses some steps you can start taking today to minimize your risks.

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Where Your Heart Is: Choosing a Nonprofit to Support

by guest blogger, Katherine Ramirez Massey nonprofit_board

Walking through the doors of the tiny back office at the headquarters for In Need Of Diagnosis several years ago, I found myself not only working in the trenches of this valuable organization, but in the unfamiliar position of having to tell someone why they should support INOD’s work. In the process, I learned that many people have trouble choosing organizations to support.

This may be one reason why. According to the National Center for Charitable Statistics, the total number of nonprofit organizations in the U.S. as of 2013 hovers around the 1.5 million mark. One-and-a-half milion organizations…

I don’t know about you, but that statistic kind of made my head spin.

In a landscape with so many worthy organizations and important causes to be a part of, how do you choose which one to support? Here are some tips to help you choose a nonprofit, whether you’re donating your time, skill, or money to a cause.

Find a personal connection. When my father passed away, my mom and little brother had a particularly difficult time grieving his loss. Someone they came across referred them to New Hope for Kids, and it really made a difference. Many years later, finding myself involved in a fundraising project that selects three local nonprofits to benefit, I suggested New Hope for Kids, and they were selected as one of the nonprofits. Having that personal connection with New Hope’s mission made it easy for me to find opportunities to support their cause.

Ask friends and family about their giving experiences. You may have many friends and family members who actively donate their time or money to a number of causes, from animal rescue to feeding the homeless. Listening to their firsthand experiences in supporting a mission they love could be the deciding factor that helps you choose a nonprofit to support.

Research online. Sites like Charity Navigator, Great Nonprofits, and Guidestar can help you make informed decisions on nonprofits that may be a good fit for you. Locally, the Rollins Philanthropy Center and the Central Florida Foundation provide good starting points for researching nonprofits in Central Florida.

Join volunteer groups. If you don’t already, there are many ways to volunteer time and skill to a variety of organizations. You can regularly volunteer for nonprofits through religious or civic organizations, or you can join an online Meetup group like Step Up For Love, where you can come together with others to volunteer for different nonprofits in the area on a regular basis. You may find that regularly volunteering your time to a mission helps you learn more about it and, in turn, may inspire you to become a lifetime supporter.

These tips and an open mind will hopefully help you pinpoint those special causes that appeal to you, so you may find out where your heart is in the vast nonprofit landscape.

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2014 End of Year Tax Donation Information

Updated December 18, 2014

IRA Rollover Approved by Congress, Heads to White House For Signing
With the White House threatening a veto of a bill to make the IRA Charitable Rollover and other provisions permanent, Congress turns to a one-year extenders package. Read more.

Related Resource: IRS Webinar: Help for Charities (Thursday, Dec. 18, 2 p.m. Eastern)

Reminders: Year-End Tax Topics
IRS Guidance:
· Tax Topic 506, Charitable Contributions
· Publication 526, Charitable Contributions
· Publication 561, Determining the Value of Donated Property
· Form 8283, Noncash Charitable Contributions
· Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes


Important information to keep in mind with end of the year donations…

2014 End of Year Donations

The IRS’s basic rule is that a gift must be “delivered” to the charity by 12/31. Cash and checks must be handed over to the organization by 12/31 if delivered in person or if sent using a private service like FedEx or UPS. If the donation is mailed through the US Post Office, it must have a postmark of 12/31. The organization will receive it after 12/31, but that is ok because the donor relinquished control (the IRS’s baseline threshold for determining a gift date) on the date s/he put the donation in the mail on or before 12/31. Credit card gifts must be “fully processed,” i.e., approved by the credit card merchant, for the gift to be considered “delivered” by the due date.

Donation Thank You Letters
During November and December, nonprofit organizations receive the majority of their philanthropic donations. It is important that they thank their donors and acknowledge the donation in a way that allows the donor the benefit of a tax deduction. In order to comply with the IRS, nonprofits need to include in their thank you letter the name of the organization, the date of the contribution, the amount of the contribution and a statement regarding whether or not goods or services were received for making the donation.

Here is a link to an IRS article titled Eight Tips for Deducting Charitable Contributions (updated in March 2014).

Here is a link to an IRS article titled IRS Offers Tips for Year-End Giving (updated in March 2014).

Here is a link to IRS Publication 1771 (PDF),Charitable Contributions–Substantiation and Disclosure Requirements.

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#GivingTuesday in Orlando and Throughout Central Florida

On Tuesday, December 2, 2014, charities, families, businesses, community centers, and students around the world will come together for one common purpose: to celebrate generosity and to give. It’s a simple idea.

  Is your organization planning an activity for #GivingTuesday?

We want to help your nonprofit promote its event or activity!

We would like to help you promote your activities and what you are doing. Here’s what you can do to take full advantage of all the promotional opportunities of #GivingTuesday:

  1. Register with the national #GivingTuesday website as a partner organization. This way the worldwide organization will list you on their website and you will receive information directly from them. Visit http://www.givingtuesday.org/join/
  2. Register with the Rollins College Philanthropy Center. This may seem redundant but this way we can help you promote your activities right here in Central Florida. Your activity will also be listed on our website of Central Florida specific activities happening that day. Visit http://pnlc.rollins.edu/?page=GivingTues_activity
  3. Follow #GivingTuesdayCFL on social media:

When promoting your #GivingTuesday activities on social media, include hashtags for both the worldwide event, #GivingTuesday and the Central Florida activities, #GivingTuesdayCFL.

 You can also join the #GivingTuesdayCFL e-mail list at http://bit.ly/1uiZMoQ for additional information and resources.

If you are located anywhere in the Central Florida region; Orlando, Winter Park, Sanford, Kissimmee, Celebration, Apopka, Altamonte Springs, Maitland, anywhere in Central Florida, sign up and let us know about your plans for #GivingTuesday!

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