October 1, 1998

Requirements/Procedures for Donations to the RSME

Donor Substantiation Requirements-as of January 1, 1994

A.    Donations of money, goods or services of $250.00 or more require written acknowledgment by the RSME.

B.    The donor must request this substantiation and the RSME must provide it before the filing date of donors taxes.

C.    Donations where the donor receives goods or services from the RSME are considered as "Quid pro quo."
    1.    If the donation is in excess $75.00, the RSME must provide a disclosure statement to the donor.
    2.    The deductible amount, for federal income tax purposes, is limited to the excess of any monies (or property value) over the "good faith" estimate, as determined by the RSME, of the goods or  services. The donor may not rely on his or her canceled check as substantiation. IE: a donor gives the RSME $100.00 cash and the RSME provides him with $60.00 of shop machine time and labor; the deductible amount is $40.00.
    3.    Any solicitation for fund raising events, such as dinners, etc., must include the disclosure statement as described in paragraph. C.2. The federal tax rules require no other disclosure statement in this case.
    4.    The rules governing "Quid Pro Quo" donations, whatever the amount, still apply. The federal tax rules do not require disclosure below the $75.00 threshold. However, the donor is allowed to deduct only the difference between the "good faith" value and the donation amount.
    5.    Note: the RSME is not required to record or report this information to the IRS on behalf of the donor.

D.    Gift shop sales (station sales) are not considered donations and therefore do not require a disclosure statement as indicated in paragraph. C.1 or 2.

RSME Responsibilities

A.    Acknowledge donated cash, material and service gifts of $250.00 and over. This will be done in a letter      format. It will acknowledge the value of the donor by name and address. If the donor is a business, then we will state the business name and address.

B.     We will acknowledge"Quid Pro Quo" donations in a following manor;
    1.    An acknowledgment letter as indicated in "A" with a disclosure statement that will include a "good faith" estimate of the service or goods provided and the excess amount that will be deductible for federal income tax purposes.
    2.    Solicitations will include the disclosure statement along with the details of the solicitation details. The disclosure font will be large enough to not be hidden in the "fine print."

General Mailing: P.O. Box 13011, Reading, PA 19612