Saturday, May 31, 2008

Restrictions and Donations

The NPO should not accept financial or other gifts that they cannot utilize. Any donation far in excess of a nonprofit’s ability to utilize should be refused.

Donations over $250 from entities that refuse to be named can invite scrutiny from the Internal Revenue Service, and the special provision that allows cars to be donated for free to 501(c)(3) organizations is also under scrutiny by the agency. Nonprofits should be careful about what sort of support they accept.