In response to IRS Announcement 2000-84: Request for Comments Regarding the Need for Guidance Clarifying Application of the Internal Revenue Code to Use of the Internet by Exempt Organizations issued on October 16, 2000, the ePhilanthropy Foundation issued the following comment in formal response to the IRS:

"... we feel there is a need to recognize the growing interest donors have in making gifts online. We would welcome the opportunity to work with the IRS to insure that the Internet is a safe and secure place for donors to make charitable gifts.

The ePhilanthropy Foundation would like to ask that the IRS consider providing guidance on the requirements for issuance of nonprofit electronic receipts “eReceipt”. We believe that comprehensive and clear instructions will protect the donor’s interest in receiving a charitable tax deduction for online gifts while clearing the way for nonprofit organizations to provide accurate and consistent documentation of these gifts."

In the Advanced Text of this Special IRS Publication 1771 the nonprofit community recieves the following instructions for electronic acknowledgment of chartiable gifts:

An acknowledgment whether paper or electronic should contain the following information:

1. name of organization
2. amount of cash contribution
3. description (but not a value) of any non-cash contribution
4. statement that no goods or services were provided by the organization in return for the contribution, if that was the case
5. description and good faith estimate of the value of goods or services, if any, that an organization provided in return for the contribution
6. statement that goods or services, if any, than an organization provided in return for the contribution consisted entirely of intangible religious benefits (described in publication 1771) if that was the case

It is not necessary to include the donor's social security number or tax identification number on the acknowledgment.

A separate acknowledgement may be provided for each single contribution of $250 or more, or one acknowledgment, such as an annual summary, may be used to substantiate several single contributions of $250 or more.

eReceipt

An organization can provide the acknowledgment to the donor electronically, such as via an e-mail addressed to the donor.

Examples:

"Thank you for your cash contribution of $350 that XYZ organization received on May 6, 2001. No goods or services were provided in exchange for your contribution"

"Thank you for your contribution of $450 to XYZ organization made in the name of its SPECIAL RELIEF FUND program. No goods or services were provided in exchange for your contribution"

"Thank you for your cash contribution of $300 that XYZ organization received on May 6, 2001. In exchange for your contribution, we gave you a cookbook with an estimated fair market value of $60."

For more information contact the IRS Exempt Organizations Customer Service Department at 877-829-5500 or on the web at http://www.irs.gov/eo