Letters Restricting Donations

Question: If we donate two first aid kits to a boy scout troop or donated other items, would we need to provide a letter restricting the use for those the same as you would for a cash donation?   

Recommendation: We recommend maintaining records of in-kind donations including the source of the requests, financial value and the community benefit purpose of the in-kind donation.

(November 2015)


Question: If making a donation to an organization whose entire mission is health-related community benefit - like American Cancer Society, is it really necessary to have the written letter restricting donation to a community benefit?

Recommendation:  The IRS Schedule H instructions require that donations be restricted in writing to one or more community benefit activities. This would include contributions to organizations with missions to provide community benefit.  

(November 2015)

Please Take Note: The information provided does not constitute legal or tax advice. The material is provided for informational/educational purposes only. Please consult with counsel regarding your organization's particular circumstances.