A non profit donation receipt template is a document that serves as a proof that you made a contribution. The receipt details your contribution. You must have your own donation receipt template if you are a member of an organization and you accept donations.
Table of Contents
- 1 What is a donation receipt?
- 2 What to include on a donation receipt?
- 3 Other important details to include:
- 4 How to write a donation receipt?
- 5 What to do with goodwill donation receipt?
- 6 How do you write a donation receipt letter?
- 7 Different types of donations that are recognized by the IRS:
- 8 Conclusion:
- 9 Faqs (Frequently Asked Questions)
- 10 What is the key information to mention in a donation receipt?
- 11 Do I require a donation receipt?
What is a donation receipt?
A donation receipt is a formal document given by a nonprofit organization to a donor on making any monetary or non-monetary contributions. This receipt serves as official evidence of the contribution and assist donors in claiming a tax deduction.
What to include on a donation receipt?
You should include the following information if you want to create your own template;
- The benefactor’s or donor’s name
- The date when the donor gave donations to the organization
- The name of your organization, association, or group. Also, include your federal TIN and notices that state you are registered.
- The total amount that benefactor has donated
- Include a list of the items and their descriptions in the case of non-monetary donations.
- In exchange for the donation if there were any commodities or services given, mention them. In case, there wasn’t any exchange, indicate this too.
- The name and signature of an authorized representative of your organization.
- A disclosure statement
Other important details to include:
Along with the above details, you should also include the following information in your donation receipt template;
How you use the given contributions and donations
In the case of monetary contributions, explain how the money is utilized for the betterment of your organization. On the other hand, in case of non-monetary contributions, you should describe to whom you gave the items or what you used them for.
The goals of your organization
Benefactors highly appreciate it if you mention the goals of your organization in the receipt. That way, they also know how they can assist you to achieve your goals.
Updates about your organization
You can also mention volunteer activities you might have in mind for the future and request benefactors to participate in.
How to write a donation receipt?
When you want to create the template, you have to focus on the layout of your donation receipt template. You can also add the logo to the layout. It makes it easier for the donor to see the sender without having to read the whole receipt.
If you want to have your receipts printed then ensure that they are printer-friendly. To give your receipt a personal appearance, you may also consider making your receipt more like a letter. Surely, this isn’t compulsory. You should base our template on the charity type you are promoting.
Moreover, for the non-profit donation receipt, you should also ensure that your template is both professional and versatile. There are various things that you can do to ensure your receipt has everything and still looks impressive. By downloading a template, you can achieve this. A template enables you to customize the perfect receipt for your organization.
What to do with goodwill donation receipt?
A charitable donation receipt is used to claim a tax deduction for household property and clothing. This is its one great benefit. As a donor, you will place value on the donated goods. After doing this, you should ensure that not to abuse the privilege by overvaluing items. The outcome of this is to get audited. Use a Donation Value Guide to provide you an idea of how to appraise your donated items in order to avoid overvaluing.
How do you write a donation receipt letter?
You can also write a donation receipt letter for your benefactors along with creating a donation receipt template. This is a simple letter that you can type in any software. Here are the steps to follow for writing a donation receipt letter;
Start with the heading
Likewise most letters, this letter also starts with heading. The heading includes the date when you wrote the letter and the recipient’s address. You may add your organization’s tagline or logo in order to make the letter look more professional.
Follow with a formal greeting
Address the recipient of the letter with formal greeting. The greeting should also state the name of your letter’s recipient just like a standard letter.
Include a notice of receipt
In the first paragraph, you have to state the notice of receipt addressed to the donor. The letter should state the following;
- What you received
- The worth of the item
- When you received the donation
- Where you received it
State your mission
Mentioning the mission of your organization is the next most important thing. You should state that what your organization plans to do with the received donation. This provides the donors more confidence in your organization.
Add a call-to-action
It may seem inappropriate to give a call of action to donate and help again. But, this can actually be a great way to do just that. Business organizations also spend a huge amount of money to identify the audience group that they should sell their products to. So, charitable organizations can also try this by giving a call to action to those who have already given donations.
Include a receipt
You should make sure to include a physical receipt after affixing your signature to the letter. You can do it either on another sheet of paper or right at the bottom of your letter. Moreover, you should include perforations so that the donor can easily rip off the receipt and keep it in their files. Also, you can print it with a dotted line.
Different types of donations that are recognized by the IRS:
Let us discuss below the different types of donations that are recognized by the IRS;
This type of donation is contributed by the donors in the form of cash to charity. This cash donation template consists of the following;
- The date of the donation
- The name of the donor
- The organization that will obtain the donation
- The amount being donated
Personal property (in-kind) donation
These type of donations contain contributions in terms of clothing, furniture, art, and household items required by the charity. The donation receipt that captures personal property donations have to include the following details;
- The name of the item which is being contributed
- The value of the item
- A precise explanation of the item
- The date when the transaction was made
- The name of the donor
- The charity who is obtaining the contribution
According to IRS, a donor is allowed to claim tax deductions on personal property donated to charity which is more than $500 but not more than $5000.
In case, the worth of the vehicle donated is more than $500 then its receipt is used for applying for tax deductions. Donors and charities to receive tax deductions have to fill the forms according to the IRS guidelines at the end of the year. The vehicle donation receipt should include the following details;
- Donor’s Name
- Charity’s Tax ID Number
- 17-character Vehicle Identification Number (VIN)
- Vehicle’s Odometer Reading
- Description of Vehicle such as year, make, model, color, and body type
- Date of the Contribution
In conclusion, your donors highly appreciate your effort when they receive a non profit donation receipt template after making donations. Your receipt should be both professional and versatile. Additionally, include all the necessary information in your receipt to make it useful and official.
Faqs (Frequently Asked Questions)
What is the key information to mention in a donation receipt?
- The names of donor and nonprofit organization
- Date of donation
- Details of any donated goods
- The contributions’ monetary value
- Specify whether the goods or services were given in exchange for the donation
Do I require a donation receipt?
Donation receipt isn’t always compulsory. But, it is an effective way to show your appreciation as an organization. Furthermore, a donor requires it to claim a charitable contribution on their federal tax return.