Dignity Northern Virginia has been classified as a public charity by IRS and is exempt from federal income taxes under section 501 ( c ) (3) of the IRS Code.  It is qualified to receive tax deductible bequests, devises, transfers or gifts; and in general, contributions to Dignity Northern Virginia can be claimed as a deduction on an individual’s income tax return under section 170 of the Code.  

 

According to IRS, "cash" means any form of monetary contribution including cash, checks, money orders, credit card contributions, etc.  An individual must keep records to prove the amount of the cash, check, or payroll deduction contributed to Dignity/NOVA if the individual wishes to claim a deduction on his or her income tax return. While Dignity Northern Virginia does not have or keep a record of the amount of dollar bills or coins that an individual puts into the collection basket, we do keep a record of an individual’s contributions made by check.

 

Generally, an individual’s canceled checks or bank statement documents the contributions.  For an individual's contributions to be deductible, IRS requires a timely statement from D/NOVA setting forth the amount of the contribution(s) and a statement as to whether any goods or services were given in exchange for the contribution.  D/NOVA is in compliance with these requirements and provides such statements to those individuals who have made cash contributions by check or in kind contributions such as gifts of items other than an individual's time.  The amount of personal time that an individual devotes to a public charity is not tax deductible.

 

Starting January 1, 2007, IRS advises that donors must keep better records -- checks, receipts, credit card statements, etc. -- for all "cash" donations no matter how small in order to deduct those contributions from an individual's tax return.    

 

D/NOVA has and will continue to make every effort to correctly document all "cash" contributions made by check.  D/NOVA has no way of identifying contributions made other than by check placed in the collection basket unless the individual places the contribution in a sealed envelope with identifying information including the contributor's name and address or makes other arrangements with the Treasurer. 

 

If you have any specific questions concerning deductibility of contributions, you should consult your tax adviser.  Any other questions concerning Dignity/NOVA finances and reporting should be addressed to the President or Treasurer.