IRS Releases Revised Publications on Charitable Contributions and Gaming Activities

Date: September 24, 2010

The Internal Revenue Service has released revised publications to provide guidance to tax-exempt organizations that receive charitable contributions and/or conduct charitable gaming activities.

IRS Publication 1771, Charitable Contributions-Substantiation and Disclosure Requirements, provides guidance on the federal tax law applicable to tax-exempt organizations that receive charitable contributions and to donors who make contributions. Publication 1771 is directed to tax-exempt organizations that receive $250 or more in contributions or provide goods and services to donors who make contributions of more than $75. Publication 1771 covers recordkeeping and substantiation rules imposed on donors of charitable contributions, as well as the disclosure rules imposed on tax-exempt organizations that receive certain quid pro quo contributions.

IRS Publication 3079, Tax-Exempt Organizations and Gaming, explains the potential impact that gaming activities may have on an organization's federal tax-exempt status. Publication 3079 provides guidance on the record keeping and reporting requirements of gaming activities conducted by a tax-exempt organization. The IRS states that "this publication will provide an exempt organization - whether it is running games already or deciding whether to start - the information it needs to operate in a manner that will not jeopardize its exempt status or generate unexpected tax bills." Publication 3079 does not address state or local gaming licensing requirements, which typically vary from jurisdiction to jurisdiction.

The revised publications are dated June 2010.