The Donation Gift Receipt (Quid Pro Quo) is available below for free for your small business office to distribute when needed.
What is a Quid Pro Quo donation or contribution?
A Quid Pro Quo donation or contribution is a payment made to an organization/business and/or charity by a donor partly as a donation to the small business or organization and partly for goods or services provided to the donor by the organization/business and/or charity.
The charitable organization or business that accepts the Quid Pro Quo donation will have to provide a written statement or receipt to the donors if the donation was in excess of $75. Here is an example of a Quid Pro Quo donation:
- A donor gives an organization/business and/or charity $100 and receives a concert ticket valued at $40, the donor has made a Quid Pro Quo donation.
In this example the charitable donation part of the payment is $60, and this would be all the donor could deduct from his income tax.
All printable receipts for donations within your organization should be numbered for accounting and control purposes.
The Quid Pro Quo donation receipt below includes:
- Receipt Number
- Name of receipt or statement
- Receipt Statement Example – Dear [Donor’s Name], Thank you for your cash donation of $75 received on [Date] at our Valentine’s Day Celebration Fundraiser. In return for your gift, we provided you with a dinner with a good faith estimate value of $25. You may have also received intangible benefits, but these benefits do not need to be valued for tax purposes. The deductible portion of your donation for federal income tax purposes is limited to the excess of your donation over the value of goods and services we provided to you. The $25.00 value of benefits you received must be subtracted from your $75.00 donation, so your actual charitable donation is $50.00. This document is necessary for any income tax deduction for your donation. Please retain it for your records.
- Receipt Issued on [Date]
- Receipt Issued by [Name and Title]
- Business Name and Address
From a public’s point of view, you do not want your donors attempting to deduct a donation only to have the IRS deny their deduction. We would recommend that you indicate in some way on all your tickets and/or special event invitations how much of the ticket price is tax deductible, even on the tickets that are priced under $75.
Click on the link to download the small business gift receipt below: