§6710 Failure to Disclose That Contributions Are Nondeductible

Summary

Certain organizations must tell people in their fundraising materials that donations to them are not tax deductible. An organization that fails to do this owes a penalty of $1,000 for each day a failure happens, up to $10,000 per calendar year. No penalty applies if the failure was due to reasonable cause. If the organization intentionally ignored the disclosure rule, the daily penalty becomes the greater of $1,000 or 50 percent of the total cost of that day's solicitations, and the $10,000 yearly cap does not apply to it. A failure counts on the day the solicitation was broadcast, mailed, distributed, or made by phone.