Donation Receipt
A written acknowledgment provided by a nonprofit organization to a donor, confirming the details of a charitable contribution for tax-deduction purposes.
What Is a Donation Receipt?
A donation receipt (also called a donor acknowledgment letter) is a written record that a nonprofit gives to a donor after receiving a contribution. The IRS requires donors to have written substantiation for any single cash or property donation of $250 or more in order to claim a charitable deduction on their tax return.
IRS Requirements
What Must Be Included
| Field | Required? |
|---|---|
| Organization name and EIN | Yes |
| Donor name | Yes |
| Donation date | Yes |
| Amount (cash) or description (property) | Yes |
| Statement of goods/services provided | Yes |
| Good-faith estimate of FMV (if quid pro quo) | Yes |
| Statement that no goods/services were provided (if true) | Yes |
How It Relates to Bookkeeping
For nonprofits, issuing donation receipts is both a legal requirement and a donor-relations best practice. In QuickBooks, incoming donations should be recorded as revenue (typically under a "Contributions" or "Donations Received" income account), and the receipt should be generated promptly after the gift is received.
Source: IRS Publication 1771 — Charitable Contributions: Substantiation and Disclosure Requirements
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