A payment that is partly a donation and partly a purchase, where the donor receives something of value in return.
A quid pro quo contribution is a payment a donor makes partly as a gift and partly in exchange for goods or services. A classic example is a charity gala ticket: part of the ticket price covers the dinner the attendee receives, and only the portion above that value is potentially deductible as a charitable gift.
Because the donor receives something of value, only the amount exceeding the fair market value of what they received is generally treated as a deductible contribution. The IRS requires organizations to provide a written disclosure for quid pro quo payments above a certain amount.
Handling these correctly protects both the donor and the organization. The precise disclosure thresholds and rules are set by the IRS and can change, so nonprofits should confirm current requirements and reflect them in their acknowledgment letters.
See it in Kindly
The price an item or service would sell for between a willing buyer and seller in an open market.
A written thank-you and receipt a nonprofit sends a donor to recognize a gift and document it.
A non-cash contribution of goods, services, or time given to a nonprofit instead of money.
A board-approved set of guidelines defining which gifts a nonprofit will and will not accept, and under what terms.
Manage donors, volunteers, members, and events together in one nonprofit platform, for one predictable subscription with no cut taken from donations.
