Donations

Donations are the financial life blood of your organization.Knowing how to properly handle, record, and acknowledge those contributions is essential!

Donations Guidelines ...

Donations

1. Contributions to individuals are not tax deductible and should not be included in your annual contribution statements. See this page on donations to individuals for more details.

2. Are you are required by law to send out or give contribution receipts? According to the IRS Pub 1771: The donor is responsible for obtaining a written acknowledgment from a charity for any single contribution of $250 or more before the donor can claim a charitable contribution on their federal income tax return. Make sure your written acknowledgments have all of the required information on them. See this page on contributions receipts.

3. Noncash contribution are handled different than cash contribution. You need to send out a separate receipt for all noncash contribution with the required information included:

  • Church's or Nonprofit's name
  • Donor's name
  • Date(s) of the donation(s)
  • Disclaimer regarding whether or not goods or services were provided or exchanged for the contribution
  • Description of donated item including what condition it was in.

Most of the time, you will not include a value on the receipt. See this page for an example of a noncash contribution receipt.

Note: There are extra documentation required for contributions of qualified vehicles (including automobiles, boats, and airplanes). If you need details on these types of donations, please research the IRS website or purchase Church Contributions It includes step-step-instructions on handling these types of contributions.

Learn more ...

Accurately tracking and managing contributions is a must for any nonprofit organization. See when and how you should issue contribution receipts...

Handling Contributions

See an example of a contribution statement and the five essential elements it should contain...

Annual Contribution Statement

Gifts in-kind are donations of items, use of property, and professional services. Accounting for those non cash donations can oftentimes be confusing.

See how to acknowledge and account for those donated goods and services...

Accounting for In-Kind Donations

Six charitable contribution receipt rules that everyone involved in tracing and recording contributions should know…

Contribution Receipt Rules

Most of the time, contributions to an individual do not qualify as charitable contribution, and the IRS does not allow a tax deduction for them...

Contributions to an Individual

Churches, both large and small, are experiencing a growing demand to accept giving electronically. See how to start and set up online giving...

How to Accept Online Giving

Love offerings (gifts) are complex issues for church administrators. See some guidelines in handling love offerings...

Love Offerings Guidelines

Do you know when to issue a contribution receipt and when not to? How about a written disclosure? Are you staying IRS compliant with your charitable contributions? All these charitable contribution questions and much more are answered in this ebook ...

Charitable Contributions

The greatest advantage of having a benevolence fund program properly set up is to ensure contributions to that plan will be considered tax-deductible and comply with IRS regulations...

Benevolence Fund

Aplos Software

Want a quick and easy way to track your donors and record contributions and deposits in one easy step? Need an online donation setup that will make it easy for your donors to give securely online plus save time by automatically integrating those contributions into your accounting software? See this user-friendly donor management and accounting software ...

Aplos Software

Need a database that is easy to use and understand and affordable? 

Shepherdbase provides churches with a simple and easy solution to track church contribution records and membership information. 

Shepherdbase

Church Accounting Package

A set of 4 ebooks that cover the following topics...

  • Fund Accounting Examples and Explanations
  • Setting up a fund accounting system
  • Donation management
  • Minister compensation and taxes
  • Internal controls and staff reimbursements
  • Much more - Click here for details

Need a Consultation, help setting up an effective Accounting System, or someone to do your monthly bookkeeping?