A donation receipt template is a type of receipt acts as proof that a benefactor had made a contribution. This contribution can be in-kind or monetary to a group, association or organization. A donation receipt is issued as a letter or an email. When the donation has been received, it is given or sent to the benefactor.
Moreover, most of the non-profit organizations provide their donation receipts at the end of the year or in the first month of the next year. It is recommended to issue donation receipts and acknowledge the donations a lot sooner. This encourages the donors or benefactors to make contributions again in the future.
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The importance of donation receipts for benefactors:
Here is the importance of donation receipts for benefactors;
- With this receipt, the benefactors receive deductions on tax returns. If they have donation receipts to support their claim then they will only be able to get deductions from their taxes linked to charitable giving.
- The receipt verifies that the donations have been received by the people or organizations that they have donate to.
- By keeping all the receipts, they will keep track of their donations, contributions, and finances in terms of charitable giving.
The importance of donation receipts for beneficiaries (non-profit organizations):
- For non-profit organizations, donation receipts act as legal documents or legal requirements. On the basis of cause of the donation, organization can be charged with a penalty in case the IRS asks for these documents and the organization is unable to present them.
- Likewise benefactors, the beneficiaries keep track of all the contributions they get and where the donations came from with the help of these receipts.
- During accounting all the finances, organizations can use these donation receipts for as precise records.
What to include in a donation receipt?
Your donation receipt should include the following information;
- The benefactor’s name.
- The date that indicates when the donation was made.
- The name of the group, organization or association as well as its federal TIN. Furthermore, a precise notice that indicates the group, organization or association is registered.
- The total amount of money that was donated by the benefactor.
- In case, the donation was not monetary then provides a list and description of the item/s which have been donated.
- A declaration. It declares that if there were any services or commodities that had been issued in exchange for the contribution. It must also be stated if there was no exchange involved.
- The name of a certified representative of the organization as well as signature.
- A disclosure statement. Disclosure statements vary in order to ensure that you are using the right one in your donation receipt.
Along with these required inclusions, it would also appreciated by the benefactors to include the following;
- The receipt also state that how the donation and contribution were used. In the case of monetary donations, state how was the money used for in the betterment of the organization. For in-kind donations, mention to whom were the items given or how were the items used for.
- The goals and objectives of the organization should also be mentioned in the receipt. This would let the benefactors know how they are assisting the organization move towards reaching their goals.
- Include the updates on what your organization is doing from starting to the present time. You can also ask them to involve you in any volunteer activities your group may have in the future.
How to create your own donation receipt template?
Let us discuss step-by-step on how to make a donation receipt template for your own use;
- We have stated above that a donation receipt can be in the form of a letter or an email. So, you can use your own style in making your template. Focus on how you want to present your donation receipt. Also, assure that you know all the required inclusions for it.
- At first, write your organization’s name and category. You would have to in order to provide donation receipts.
- Next, leave the space for the donor or beneficiary’s name to be put. You must include the donor’s name for a donation receipt to be legitimate. When you have it then jot it down.
- Also, include space for the details about when the donation was made and what the donation was either it is monetary or not.
- Write down the declaration that states whether the beneficiary had gotten something in exchange for the donation or not.
- If donor didn’t receive anything in exchange then state it in the donation receipt as well.
- If the donation is in the form of vehicles, you have to consider the following things;
1- You would have to include the sold date if the vehicle donated was put up for sale. Also, indicate the gross earnings you had gotten from it.
2- If the organization didn’t sale the vehicle then include a statement of how long and what you plan to use it for.
- It is also important to include the correct disclosure statement.
- Sign the form is also necessary. This serves as evidence that the organization has made the donation receipt. It also indicates that the organization will be accepting the donations.
- Draft a thank you letter as well. Then, give or send it separately. The donation receipt acts as an acknowledgement to the benefactor. On the other hand, the donation receipt is the formal document that would be used for record purposes.
- In the end, save your donation receipt template. You can use the same template for all your donations. You may also like solicitation letters.
In conclusion, include all the information in a donation receipt template to make it official and useful. It should be given under the name of the person or association who gave the donation. This receipt is beneficial for both the benefactors and beneficiaries.