IRS changes requirements for charitable deductions

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Forum SharingMay, 2007

As stated on page 93 of the 2004-2006 Al-Anon/Alateen Service Manual, "the World Service Office makes no judgment as to the specific deductibility of a contribution by any member." However, we do want members to be aware of some changes concerning the reporting of contributions on U.S. income tax returns. In the past the Internal Revenue Service has allowed certain cash contributions as itemized deductions without a receipt.

Beginning in 2007 a taxpayer is required to have a receipt for each cash contribution claimed as an itemized deduction. This receipt must be from an organization that has received tax exempt status from the IRS. Al-Anon groups and many service arms are not registered and therefore not eligible to issue tax receipts. In addition to the organization's name, the receipt needs to include the contributor's name, the date and amount of the contribution, and whether the donor received anything of value for the contribution.

The World Service Office, many Area structures, and some information services and/or literature distribution centers are registered as 501 (c) (3) organizations and are eligible to receive deductible contributions and issue tax receipts. If the opportunity to deduct your contribution is a consideration in determining how much you will give, please check to be sure that the service entity is eligible to issue such receipts before you make your contribution. Canceled checks may not be sufficient proof in the future.

By David Zach,
Director of Business Services (non-member)
The Forum , May, 2007

Reprinted with permission of The Forum, .Al-Anon Family Group Headquarters, Inc.(external Al-Anon link), Virginia Beach, VA.
© Al-Anon Family Group Headquarters, Inc. 2007. All Rights Reserved.