§6710 Failure to Disclose That Contributions Are Nondeductible

Summary

Organizations must pay fines if they do not follow the rule in section 6113 when asking for donations. The fine is $1,000 for each day the mistake happens, but no more than $10,000 in one calendar year. There is no fine if the organization shows the mistake was for a reasonable cause. If the organization intentionally ignored the rule, the daily fine is whichever is larger: $1,000 or 50% of the total cost of that day’s solicitations. That intentional fine is not limited by the $10,000 yearly cap and does not count toward that cap for other days. When a missed requirement is counted depends on how the solicitation was made: for TV or radio it counts when aired, for mail when mailed, for printed materials when distributed, and for phone calls when the call was made.