PRIA, Government Policy, Made Personal

Summary

Every fundraising ask by certain groups must include a clear, easy-to-see statement that donations are not deductible on federal income tax returns. The rule covers tax-exempt groups that are not treated as charitable donors, political organizations, and groups that were in either category at any time in the last 5 years or are successors to them. Small groups whose yearly receipts are normally $100,000 or less do not have to follow the rule. The Treasury can treat several groups as one to stop people from avoiding the rule. “Fundraising” means asks in writing, on TV or radio, or by phone. A single letter or call is not covered if it is not part of a campaign that contacts more than 10 people in a calendar year.

Title 26, §6113

Internal Revenue Code, Source: USLM XML via OLRC

(a)General rule

Each fundraising solicitation by (or on behalf of) an organization to which this section applies shall contain an express statement (in a conspicuous and easily recognizable format) that contributions or gifts to such organization are not deductible as charitable contributions for Federal income tax purposes.

(b)Organizations to which section applies

(1)In general

Except as otherwise provided in this subsection, this section shall apply to any organization which is not described in section 170(c) and which—

(A)is described in subsection (c) (other than paragraph (1) thereof) or (d) of section 501 and exempt from taxation under section 501(a),

(B)is a political organization (as defined in section 527(e)), or

(C)was an organization described in subparagraph (A) or (B) at any time during the 5-year period ending on the date of the fundraising solicitation or is a successor to an organization so described at any time during such 5-year period.

(2)Exception for small organizations

(A)Annual gross receipts do not exceed $100,000

This section shall not apply to any organization the gross receipts of which in each taxable year are normally not more than $100,000.

(B)Multiple organization rule

The Secretary may treat any group of 2 or more organizations as 1 organization for purposes of subparagraph (A) where necessary or appropriate to prevent the avoidance of this section through the use of multiple organizations.

(3)Special rule for certain fraternal organizations

For purposes of paragraph (1), an organization described in section 170(c)(4) shall be treated as described in section 170(c) only with respect to solicitations for contributions or gifts which are to be used exclusively for purposes referred to in section 170(c)(4).

(c)Fundraising solicitation

For purposes of this section

(1) In general

(2)Exception for certain letters or calls

The term “fundraising solicitation” shall not include any letter or telephone call if such letter or call is not part of a coordinated fundraising campaign soliciting more than 10 persons during the calendar year.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 6113 was renumbered 6116 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 100–203, title X, § 10701(d), Dec. 22, 1987, 101 Stat. 1330–459, provided that: “The

Amendments

made by this section [enacting this section and section 6710 of this title and renumbering former section 6113 as section 6114 of this title] shall apply to solicitations after January 31, 1988.”

§6113 Disclosure of Nondeductibility of Contributions