Expert: Leslie - 11/8/2006

Question
Leslie
I am from a nonprofit organization called savethehorse.org.
We are having a fundraiser Nov. 19th to raise money for hay for the winter for a horse rescue farm. we have over 70 horses. A band has generously offered to donate their time and play for free at our fundraiser. They have asked for a letter from the specifing their donation. Can you tell me how to word that letter on our letterhead to sound
correct and professional.
Thanks
B. Staley

Answer
Good morning, Beth,

Your letter can be quite simple. The band needs to have something to show the IRS, and the IRS is not fussy.

What I would do in your place is after the concert, write a thank you note to the band.  Be sure to use the official band name, if it is incorporated, use that name. Depending on state law, you may even need to use the band's tax number (EIN). Include the date and time the band provided the service and the amount of money they would have received had they been a paying gig.

Example: Dear so-and-so, Thank you for contributing your unique skills to our fundraiser... Your contribution of music on the [date] [time] helped us greatly. Your donation of [dollars for gig] helped us to get even more...

You will need to put this quick note on official organization stationary with the organization's name, address, and contact information. You can also place this information in the header of the note.

You may need to write two letters: one as a memorandum of agreement before the gig stating when you want them and a second afterward for the IRS stating the amount of their donation. Please check with the band manager about the specifics. The letter for both will be essentially the same. Only a couple of lines will change.

The letter needs to be signed by the person who would normally write the checks and do the bookkeeping for your organization. (usually the treasurer).

Good luck on your fund raising.

Leslie