IRS QpQ disclosures — what Redswing handles automatically
When a payment over $75 includes something of value, the IRS requires a deductible-amount disclosure — Redswing computes and includes it for you.
IRS QpQ disclosures — what Redswing handles automatically
When someone pays more than $75 and gets something of value in return — a round of golf, a dinner, a prize — the IRS requires the charity to tell them how much of the payment is actually tax-deductible. Redswing does this for you.
Overview
"Quid pro quo" (QpQ) means "something for something." If a player pays $150 to play and the golf and meal are worth $60, only $90 of that payment is tax-deductible. The IRS requires the charity to disclose that deductible portion in writing whenever the payment is over $75 and the fair market value of what they received is greater than zero. Redswing computes this automatically from the fair market values you set during event setup, and includes the correct language on the donor's receipt.
What you need to do
- During event setup, on the Tax & disclosures step, set the fair market value of what each payment includes (for example, the per-player value of golf and meals).
- That's the part only you can know — once it's set, Redswing handles the rest.
- Redswing computes the deductible amount per payment, stores it on the registration at checkout, and prints the disclosure on the tax letter or receipt.
What Redswing handles for you
- Detecting which payments cross the $75 threshold.
- Calculating the deductible portion from your fair market values.
- Writing the IRS-compliant disclosure language (you never have to draft it).
- Including it on donation receipts and tax letters automatically.
Things to know
- Direct donations have no goods or services attached, so they are fully deductible and need no QpQ disclosure.
- If you set no fair market value, Redswing cannot compute the split — so set it during setup to keep your receipts accurate.
- Redswing is a technology platform, not a tax advisor; for unusual situations, point your donors to their own tax professional.
Related articles
Still have a question?
Email hello@redswing.io — we read every message and usually reply the same day. Or start your event and try it free.