Tax season is around the corner. Did you know, it's required by law all charity organizations send receipts to their donors by Jan 31st.
See IRS Publication 1771 for more information on the Charitable Contributions – Substantiation and Disclosure Requirements.
Donor's can't claim a tax deduction for any contribution (cash, check or other monetary gift) unless the organization provides them with a written receipt acknowledging their gift. we have provided tools and verbiage to include in your written communications to your donor list.
Written receipt can be an e-mail, postcard or letter showing the name of charity org, the date of contribution and amount. Contributions can also include In-kind donations and Pro-bono services. See below for examples.
EXAMPLE: “Thank you for your cash contribution of $300 that (organization’s name) received on December 12, 2020. No goods or services were provided in exchange for your contribution.”
Quid Pro Quo Contribution
(Goods or services were provided for donation)
EXAMPLE: “Thank you for your cash contribution of $350 that (organization’s name) received on May 1, 2020. In exchange for your contribution, we gave you a book with an estimated fair market value of $25.”
IN KIND DONATIONS
EXAMPLE: “Thank you for your contribution of a used oak baby crib and matching dresser that (organization’s name) received on March 11, 2020. No goods or services were provided in exchange for your contribution.”
It's imperative for nonprofit organizations to track donation data. There are donor management systems that can help but they can be costly. We created a excel sheet(below) to get you started tracking donations and donors. You can always upgrade to paid software down the line.
Let us know in the community section, what donor management systems you use?