§6710 Failure to Disclose That Contributions Are Nondeductible

Summary

Requires an organization that must include a notice saying donations are not tax-deductible to pay $1,000 for each day it fails to include that notice in a fundraising solicitation. The total penalty for an organization in any calendar year cannot go over $10,000. No penalty is charged if the organization shows the failure was for a 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 penalties for intentional disregard, and those penalties are not counted toward the cap for other failures. The day of failure is the day the solicitation aired (TV or radio), was mailed, was distributed in print, or was made by telephone.