Tax Letter FAQ
Tax Letter FAQ
1. When do PragerU tax letters go out for donations?
We mail out tax letters to our donors by January 31st of each year for the preceding calendar year.
2. Are there donation limits to get a tax letter?
We typically send these out to donors who gave a total of $200 or more in the prior year. Many nonprofits send these out only if a donor gives $250 or more in a single transaction, but for your convenience we use lower limits.
3. What if I gave separately from my spouse, and also gave from my business account?
Although sometimes people prefer one consolidated tax letter, IRS rules dictate that we can only provide tax letters to each payor separately, even if you file your taxes jointly.
4. When will I get an Acknowledgement Letter for my donation from my Donor Advised Fund (DAF)?
We will issue an Acknowledgement Letter for donations received $10k or more within 2 weeks of receiving the donation, if we are provided with contact information along with the donation to be able to do so. If you’d like an Acknowledgement Letter to be issued for under $10k, we are happy to do so upon request. Please note official tax letters are issued by your Donor Advised Fund upon funding the DAF, and not PragerU.
5. What is a goods/services deduction?
If you received any goods/services from your donation (i.e. by coming to an event and having a meal, or receiving merchandise), we have to legally deduct a fair market value cost of that item from your donation. So if an event ticket was $500, and your meal estimate is $50, we would provide you a letter showing all amounts with a net tax donation of $450.
6. What if I donated less than $200?
You can always use your cancelled check and/or receipt from Classy if you ever need to show proof of donating to PragerU. Your tax preparer will usually not send any backup with your tax return to the IRS, but these are usually held in case of audits, etc. Please remember none of the above is considered official legal/tax/financial advice, and always check with your tax professional for any specific questions or concerns.