A donation tracker template is used by non-profit organizations to keep track of all the donations coming in. These organizations provide relief and assistance for those in need by hosting fundraising events and campaigns. The donations are collected from willing benefactors.
Moreover, there are different kinds of non-profit organizations but they have equally important causes. They pay attention to the environment, social issues, and others. They usually have a goal in mind while hosting an event to raise funding. Also, they use donation charts and a fundraising tracker template to monitor the progress of the funds coming in. These tools make sure that all the money is well-spent. You should also check Non-Profit Donation Receipt Templates.
Benefits of a donation tracker:
Nowadays, giving donations is very common and is already part of our way of life. You can start using a donation or fundraising tracker if you want to check all the donations you receive. Let us discuss below the benefits of using such trackers;
- When you give donations, you will feel wonderful. It will make you feel good too when you think that how you affect a person’s life in a good way. Your experience becomes more special and real by knowing where your donation goes. You will keep track of where your donations go by using a tracker. You can record your donations in the tracker whether you donate money or goods.
- By giving to charities, you will get a chance to connect with the people in need. You will become worldlier by tracking all the donations you’ve given. This way, you will also see the exact situations of the people or societies you donate to. This will assist you in understanding the lives of the underprivileged better.
- In order to get exemptions on your taxes, you can also use the tracker. The tracker will act as a concrete document of all the donations you gathered and gave away. In addition to this, you may get an opportunity to waive-off taxes and get some exemptions. Therefore, it is very helpful to keep such a document. All the donations that have made within a year, you can use it to summarize them. After that, along with all your donation tracking documents, you can submit your summary. These will serve as evidence of all the charitable work you’ve done throughout the year.
- A donation tracker is also easy to make and easy to use. They are very helpful tools that you can customize as per your requirements. You may use this document in case you work in an organization that hosts a lot of fundraising events. You can either use a donation chart, tracker or even a fundraiser thermometer template as all of these serve the same purpose and provide the same benefits.
How to track donations?
A donation tracker or a donation chart can be used for different purposes. The most essential purpose is to get tax exemptions. You need to document everything in case you’ve made charitable contributions. Do this so that you will be well-prepared when the time for paying taxes comes.
Furthermore, before start tracking donations, you should first identify which ones you need to document. Then, you have to make a decision what type of template to use. For tracking that works for your own organization, develop a system. You also have to organize all your processes so that you can keep track of all the receiving donations.
- Not all donations can assist you in gaining tax exemptions. It is basically possible to get a tax deduction or exemption. Therefore, you should make a donation to a qualified charitable organization.
A charitable organization has to apply to the IRS in order to get qualified. Before you make your donation, ask the organization if they’re qualified first.
- You also need the right documents when you have verified the qualification of the organization. On your own or through the organization, you can keep track of your donations. Rules regarding giving donations may vary from one organization to another.
- You can provide cash donations in various ways. You can provide cash or a check. Moreover, you can also use your credit or debit card. You need to record everything in your tracker even for cash donations. Write down your organization’s name, the date, and the amount of your donation.
- You may also have to keep additional documents along with your tracker. A bank record or statement is such a document that indicates how much you’ve contributed.
- It is more complex to keep track of non-cash donations. But, you still have to track all these contributions. For example, you have provided clothing or appliances to a charitable organization. You may also ask for documentation for this. This is based on the value of the item you gave.
- In case, you want to track the items using their value, just evaluate them first. Consider what value a thrift store would charge for your item. You can record this value on your tracker.
- You have to make a contribution that’s less than $250. You require written confirmation for this from the organization. Attach this to your tracker to act as evidence of the donation.
- You may have to make a contribution of between $250 and $500 and also, and you also need a written acknowledgment for this from the organization. The document should also include a breakdown of the items you provided in case you donated items.
- You also need the above documents if the value of your contribution is between $500 and $5000. Aside from those, for the item/s you donated, you would also need a tax basis.
- Additionally, prepare the above documents if the value of your contribution is more than $5000. You will also require a written assessment of the property or items you have donated along with them. You may also see Donation Receipt Templates.
In conclusion, a donation tracker template is a useful tool that allows you to visualize the amount you’ve collected. It will also assist you in organizing the donations while you’re going to spend them or give them away.