What type of information must be disclosed when a donation is made to a nonprofit organization?

In South Dakota, donations made to nonprofits must be disclosed with certain information in order for the donation to be considered valid. This includes the date of the transaction, the donor’s name and address, the amount of the donation, and the description of the donation. If the donation is for noncash items, such as clothing or furniture, the donor must provide documentation of the items’ appraised value. Further, the nonprofit must maintain a record of the donation for at least three years after the donation has been accepted. Nonprofits in South Dakota may also be required to provide written acknowledgments to donors to provide proof that a donation was made. This should include the name and address of the organization, the date and amount of the donation, and a description of any noncash items contributed. The acknowledgment should also include a statement that the donation is tax deductible if the nonprofit organization is a registered 501(c)(3). It is important for nonprofits in South Dakota to strictly adhere to the laws of disclosure when accepting donations. Not only is it legally required but it also serves as good practice and helps build trust with donors. Providing donors with complete and accurate information about their donations helps ensure that donors are adequately informed and can plan for their tax deductions.

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What type of information must be disclosed when a donation is made to a nonprofit organization?

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