Donation Compliance Detail

1. IRS Requirements for 501(c)(3) Acknowledgments

1.1 Overview

As an IRS-approved 501(c)(3) tax-exempt nonprofit (EIN 41-5066584, approved April 24, 2026), HarvestEdgeTools complies with IRS regulations governing charitable contribution acknowledgments, quid pro quo disclosures, and annual giving statements. The procedures below are the operational playbook for satisfying those rules.

1.2 Written Acknowledgment ($250 or More)

Under IRC Section 170(f)(8), a donor making a single contribution of $250 or more requires a contemporaneous written acknowledgment. HarvestEdgeTools’ acknowledgment for any such contribution must include:

• Organization legal name and 501(c)(3) status
• Date and amount of the contribution
• Statement of whether goods or services were provided in exchange
• If applicable: description and good-faith FMV estimate of any goods/services
• If no goods/services were provided: explicit statement to that effect

Timing: The acknowledgment is provided no later than January 31 of the year following the contribution, or at the time of the contribution where practicable.

1.3 Quid Pro Quo Disclosure (Over $75)

When a donor makes a single payment exceeding $75 that is partly contribution and partly payment for goods/services, HarvestEdgeTools furnishes a written disclosure that:

• Informs the donor the deductible amount is limited to the excess over the FMV of goods/services received
• Provides a good-faith FMV estimate of those goods/services

Penalty for non-compliance: $10 per contribution for which proper disclosure is not made, capped at $5,000 per fundraising event or mailing (IRC §6115 / Reg §1.6115-1).

2. Monthly Partnership Donations ($5/month)

2.1 IRS Analysis

The standard $5.00/month donation ($60.00/year) is below the $75 per-payment threshold for quid pro quo disclosure. Monthly recurring contributions are treated as separate payments under IRS guidance; aggregation across the year does not trigger §1.3.

2.2 What $5/month Partners Receive

• Access to the Factory system for AI-powered ministry-tool building
• Technical support via email
• Ownership of all tools built on their behalf
• Access to shared ministry frameworks (if opted in)

2.3 Fair Market Value Determination

The fair market value of the services above is being determined by attorney and CPA review. Until that determination is complete, two analyses remain possible:

• Option A — Nominal/insubstantial value: if the FMV of services falls under an IRS safe harbor (§5.1), the full donation is deductible.
• Option B — Determinable FMV: if the FMV is substantial and determinable, the deductible portion equals `donation - FMV`.

Until attorney and CPA confirm which option applies, internal practice is to withhold formal tax-treatment statements to donors beyond the contemporaneous-acknowledgment minimums required by §1.2.

2.4 Sample Acknowledgment Templates

If Option A (nominal/insubstantial value) applies:

If Option B (determinable FMV) applies:

3. Larger Gifts (Over $75)

3.1 Quid Pro Quo Disclosure

For single payments exceeding $75 with goods/services provided, the written disclosure includes a statement that the deductible amount is limited to the excess of the payment over the FMV of services received, and a good-faith FMV estimate.

3.2 Enhanced Partnership Tiers (Provisional)

For Partners donating monthly at higher tiers. Provisional table — values pending attorney and CPA review. No specific tier benefits, FMV, or deductible portion is represented to any donor until counsel and CPA confirm.

Tier	Monthly Donation	Additional Services	Estimated FMV	Deductible Portion
Standard	$5/month	As described in §2.2	[Pending attorney/CPA review]	[Pending]
Enhanced	[Pending]	[Pending]	[Pending]	[Pending]
Sustainer	[Pending]	[Pending]	[Pending]	[Pending]

Enhanced-tier thresholds and additional services will be defined based on operational experience and counsel review.

3.3 One-Time Major Gifts ($250+)

A single written acknowledgment satisfies both the $250 contemporaneous-acknowledgment requirement (§1.2) and any quid pro quo disclosure requirement (§1.3) when goods/services were provided.

3.4 Non-Cash Contributions

• HarvestEdgeTools acknowledges receipt and describes the property donated.
• HarvestEdgeTools does NOT assign a value (donor’s responsibility per IRS rules).
• For contributions claimed above $5,000, the donor is responsible for obtaining a qualified independent appraisal. HarvestEdgeTools’ role on IRS Form 8283 is donee signature only.

4. Annual Giving Statements

4.1 Provision Timing

Annual giving statements are sent to every donor by January 31 of the year following the contributions covered.

4.2 Contents

Each annual statement includes:

• Organization legal name, mailing address, and EIN
• Donor name and (where applicable) Partner church/ministry name
• Summary of all cash contributions by date and amount
• Description of all non-cash contributions (without assigned value)
• Statement regarding goods/services provided + good-faith FMV estimate where applicable
• Aggregate deductible amount for the year (subject to §2.3 Option A/B determination)
• 501(c)(3) status confirmation
• Tax-advisor consultation disclaimer

4.3 Delivery

Delivered via email to the donor’s contact-of-record. Paper copies are available on donor request.

4.4 Recordkeeping

All acknowledgments and statements are retained for a minimum of seven (7) years from the year of issuance.

5. Insubstantial Benefit Safe Harbors

5.1 IRS Safe Harbors

Under IRS Revenue Procedure 90-12, the full donation amount is deductible if the donor’s benefits are “insubstantial.” Three safe harbors apply:

• Safe Harbor 1 — Low-Cost Articles: FMV of benefits no more than the lesser of 2% of the payment or approximately $131 (2026 threshold).
• Safe Harbor 2 — Token Items: Donation is approximately $65.50 or more and the only benefits are token items bearing the organization’s name (e.g., bookmark, mug, key chain).
• Safe Harbor 3 — Membership Benefits: Annual membership benefits for $75 or less consisting of frequently exercisable rights.

5.2 Benefits Considered Nominal

For purposes of this policy, the following are considered nominal and do not reduce the deductible amount:

• General access to newsletters, updates, and ministry resources also available to non-donors
• Inclusion in the HarvestEdgeTools prayer network
• Digital acknowledgment of Partnership status (e.g., Partner badge)
• Access to shared, publicly available ministry templates and frameworks

The following are NOT considered nominal and require FMV disclosure when applied to a Partner’s tier:

• Dedicated AI-agent compute time for custom tool building
• Custom website development and hosting
• Personalized technical support beyond basic inquiries
• Any service that would otherwise be available commercially at a determinable price

5.3 Intangible Religious Benefits

Under IRS regulations, “intangible religious benefits” are excluded from the quid pro quo analysis. Any qualifying HarvestEdgeTools services that fall into this category — such as theological compliance review — are disregarded for deductibility purposes.

6. Payment Processing

• Processor: Stripe, Inc. HarvestEdgeTools does not store credit-card or bank details on its own systems.
• Important: Stripe receipts are payment confirmations only, NOT IRS-compliant charitable acknowledgments. HarvestEdgeTools issues a separate §1.2 acknowledgment for any contribution of $250+ and a §1.3 disclosure for any single payment over $75 with goods/services exchanged. The Donation Acknowledgment Policy calls out this distinction explicitly so donors don’t mistake the Stripe email for a tax receipt.
• Refunds: Donations are generally non-refundable. Refund requests within 30 days for payment-processing errors route to [email protected] for review.

7. State Charitable Solicitation

HarvestEdgeTools complies with applicable state charitable-solicitation registration requirements. Florida registration is current as the state of incorporation. Multi-state registration thresholds are an open attorney follow-up.

8. Governing Law

This policy is governed by the laws of the State of Florida and applicable federal tax law.

9. Contact

Subject to attorney and CPA review. Consult your tax advisor for personalized advice.