Donations are made to help out non-profit or welfare organizations by the wealthier people. It will not only help organizations but also help donors to get a tax break. Size of donation does not matter because the donation will help you to take tax deductions. You should get the donation receipts as a proof to show IRS to get tax benefits. Donation receipt will save your time as the proper documentation is always required to reference during tax time. Nonprofit organizations cannot continue their business without donors and as you solicit contributions from business and folks be sure to have donation receipts. The donation receipt is vital and will be used for their records. It will prove best to file for tax deduction at the end of the year.
Here is preview of this Donation Receipt Template created using MS Word,
Tips to Design Donation Receipts
Donation receipt is essential to design so that the donors can get potential benefits. Essential information is required to be presented at the comprehensive donation receipts so following are some tips to design donation receipts:
- Write the name of donor, address, telephone number and the amount or item that the donor vowed. If an item is given as donation instead of money then it is essential to write the value of item. This will help donors to present proper documentation for the donations to get required benefits. Write brief description of the donation including time, date and place for the proper presentation.
- It is vital to include the disclosure that we have received no goods or services in the exchange of donations. If there was an exchange such as dinner or lunch plate and concert ticket as a result of the donation, list the value of exchanged goods. For instance, you have received $50 concert ticket in the exchange for the $2,000 donation. In this case, the IRS will deduct the value of ticket from the amount of donation.
- Do not forget to take the signature of one of the officials of the organization on the donation receipt. For more than one receipts at once, it will be better to issue them on the letter head of the company so that the donor can get the proof of issuer of the document.
- Send the receipts to respective persons on time before January 31 of the following year so that the donors can file the taxes on time. Do not forget to keep each copy of the donation receipt with you for the future reference of the organization.
- It is compulsory to clearly write the amount of donation or value of goods for the donation on the receipts because it will help you to avoid potential confusions. You can generate a unique serial number for donation receipts to make your accounting easy.
- If you want to save your time then it is essential to have a donation receipts specimen according to the standards of IRS. Design a specimen in advance and then use it to generate donation receipts every time. It will help you to keep softcopies and hardcopies of donation receipts at the same time.
Here is download link for this Donation Receipt Template,