If you are looking for a non-profit donation receipt to acknowledge donations from donors, it is important that you familiarize yourself with it. A donation receipt is a written document, is prepared by a non-profit or charity, issued to a donor stating the amount of donation has been received. As the donation receipt has no standard formatting, each charity creates its own different formats. However, they all contain similar details. The donation receipt is important to you in so many ways and therefore, it is better that you should have an overview of how it looks.
Nonprofit donation receipt details
The following information is essential that you can find in a nonprofit donation receipt:
- First, the receipt should have the name of the donor written in full.
- Second, the receipt should include the amount donated. The amount is written in both figures and words.
- Third, it should also include a statement indicating whether the donor received something in return for the contribution. For example, donation receipts from religious organizations always contain a statement to indicate that the donor received intangible religious benefits in return, however, those benefits value no money for tax purpose. In case goods or services are contributed, the donation receipt must include a good-faith estimate of each item.
Importance of non-profit donation receipt
A nonprofit donation receipt is very important to both the donor and the charitable organization in several ways:
- To begin with, the receipt can qualify the donor for tax deductions. When you are filing your tax deductions, you should provide the receipt to the IRS.
- In addition, non-profit donation receipt serves as a proof of donation. The receipt is a legal document that indicates that on a certain date; you donated a specified amount of money to a named organization.
- Lastly, the receipts are important to the charitable organization as they make the correct bookkeeping. When making financial statements, the organization will use copies of receipts as supporting documents.