513(i) provides further that use or
acknowledgment does not include advertising (including messages containing qualitative or comparative language, price information or other indications of savings or value, or an endorsement or other inducement to purchase, sell or use a sponsor's products or services).
CPA FIRMS CAN ASSIST NPOs in preparing written
acknowledgments for contributions of $250 or more as well as help formulate statements for quid-pro-quo contributions.
This written
acknowledgment need not meet any prescribed form; it may consist of a letter, postcard or computer-generated form.
This relief was driven as much by charities that had trouble setting up systems to send out the
acknowledgments as it was by taxpayers complaining about the harshness of the law.
On acceptance of the return, the IRS sends an
acknowledgment file to the preparer.
Among other features, the proposed regulations adopt a relatively bright-line demarcation between taxable advertising services and nontaxable donor
acknowledgments.
