question.jpgIn Federal Income Tax

What is a disclosure statement?

Within the context of charitable contributions, when a qualified organization receives a donation of more than $75 and gives the donor some benefit in return, it must provide the donor with a written document known as a disclosure statement. This disclosure statement will indicate an estimated value of the benefit the donor received as well as a statement of how much of the contribution the donor can deduct in your itemized deductions. However, disclosure statements are not required when only a token item is received or where the donation is to a religious organization and the only benefit is an “intangible religious benefit” (such as being permitted to enter religious ceremonies).