When holding fundraising events with some or all of the proceeds going to the Foundation (Convalescent Endowment Fund and/or Convalescent Relief Fund), the benefit to donors is the ability to claim charitable contributions for tax purposes. It is important to note that only the part of the donation that is given to the Foundation is deductible. Therefore, it is important for Subordinate Temples to provide a receipt that shows the actual amount received, the cost of the item/meal being purchased, and the amount of the donation that represents a contribution to the Foundation.
A Temple is selling tickets for $20 to a dinner that costs $15 with 50% of the proceeds going to the Temple and 50% of the proceeds going to CEF.
In the advertisements, the Temple can state: 50% of the proceeds will be given to the Daughters of the Nile Foundation for the benefit of Shriners Hospitals for Children®
The ticket or receipt must contain a statement pertaining to the charitable contribution such as: The cost of the ticket is $20. A contribution of $2.50 from each ticket is given to the Daughters of the Nile Foundation. The Foundation is recognized as a tax-exempt 501(c)(3) organization and its Tax I.D. number and a copy of the Foundation’s exemption letter are available upon request.
If an individual makes a bid of $50 at a silent auction and the fair market value of the item is $25, the donor may claim $25 as a charitable contribution if all proceeds of the event are going to the Foundation. If 50% of the proceeds are going to the Foundation, the charitable contribution is $12.50.
Receipts should note that proceeds are going to the Daughters of the Nile Foundation for the benefit of Shriners Hospitals for Children®
Receipts should also include a statement that a copy of the Foundation’s exemption letter is available upon request.
The following pages are examples of receipts that may be used. Any questions may be directed to a Foundation Board Member, or via email at firstname.lastname@example.org . Best of luck in your fundraising efforts. Working Together, we can help the lives of children for many years to come!