What wording should Tunnel to Towers include in a donation receipt to explicitly document quid‑pro‑quo benefits for IRS purposes?

1. What the law actually requires, in plain terms

Federal law mandates that organizations provide a written disclosure statement to donors when a payment is partly a contribution and partly payment for goods or services (a “quid‑pro‑quo”) exceeding $75, and that this statement be furnished in connection with the solicitation or receipt of the payment (26 U.S.C. §6115; ^[13]; p1_s2). The statement must include a good‑faith estimate of the fair market value of goods or services provided, must be in writing in a manner likely to come to the donor’s attention (not tiny fine print), and penalties apply for failures—$10 per contribution up to $5,000 per event or mailing—unless reasonable cause is shown ^{[6] [7] [2]}.

2. What Tunnel to Towers currently states and the implication

Tunnel to Towers already represents online purchases as donations and asserts its 501(c) public charity status on its tax‑deductibility page ^[8], which is a necessary element of any acknowledgement (donor needs the charity’s exempt status to claim deductions) but not sufficient for quid‑pro‑quo reporting when goods or services accompany the payment ^{[4] [9]}. Because the organization sells branded goods and “purchases” are treated as donations, receipts must explicitly separate the charitable portion from the value of items shipped or benefits conferred to avoid misreporting and penalties ^{[1] [10]}.

3. Exact elements that must appear on receipts

Receipts should: identify the organization and its 501(c) status; state the total payment amount; provide a description and a good‑faith estimate of the fair market value of goods/services the donor received; state the deductible amount (payment minus FMV); note any token‑gift exception if applicable; and be delivered with the solicitation or upon receipt in clear, prominent language ^{[6] [2] [4]}. IRS guidance and nonprofit practice underscore that there is no required format, but the content and conspicuous presentation are mandatory ^{[11] [9]}.

4. Suggested, IRS‑aligned receipt wording

A single sentence or short block on the receipt can satisfy the rule if clear: “Thank you for your purchase/donation. The Stephen Siller Tunnel to Towers Foundation (a 501(c) public charity) received $[TOTAL]. The fair market value of goods/services provided to you in connection with this payment is $[FMV] (good‑faith estimate); therefore the tax‑deductible portion of your contribution is $[TOTAL − FMV]. If the value of items provided is insubstantial or qualifies as a token gift under IRS rules, no deduction reduction applies.” This mirrors IRS requirements to state FMV and deductible amount and to identify the charity ^{[3] [2] [4]}.

5. Practical notes, exceptions and risks to disclose

Include language that the FMV is an estimate and that donors who itemize should retain this receipt for tax records; if items are token or below IRS thresholds they need not be subtracted, but the organization should document why that exception applies ^{[5] [6]}. Organizations that fail to provide the required disclosure risk statutory penalties and donor confusion about deductibility, and a prominent disclosure reduces audit risk and reputational friction—information emphasized by IRS guidance and nonprofit advisors ^{[7] [10]}.

6. Transparency, audit readiness and institutional incentives

Beyond minimal compliance wording, Tunnel to Towers gains trust by publishing a brief methodology for FMV calculations (e.g., retail price less typical discounts, or market estimate) and by making quid‑pro‑quo language conspicuous at checkout and on emailed receipts; this anticipates IRS expectations that statements be likely to come to donors’ attention and avoids penalties or disputes over “hidden” non‑deductible benefits ^{[6] [9]}. While exact valuation can be contested, documenting the approach and retaining records is the practical hedge the IRS and nonprofit consultants recommend ^{[2] [12]}.