§6710 Failure to disclose that contributions are nondeductible

Summary

If an organization covered by section 6113 asks for donations without the required disclosure, it must pay $1,000 for each day the mistake happened, up to $10,000 in one calendar year. No penalty applies if the organization can show the mistake was due to reasonable cause. If the failure was done on purpose, the penalty for that day is the larger of $1,000 or 50 percent of the total cost of that day's solicitations. The $10,000 yearly cap does not apply to that intentional-violation penalty, and that penalty does not count toward the cap for other days. A failure is treated as happening when a TV or radio ad aired, when mail was sent, when printed material was handed out, or when a fundraising phone call was made.