Whenever someone donates to your club, you must ensure that you send them a clear receipt so they can take advantage of their tax deduction. These receipts are your club’s way of saying, “Thanks for being on the team,” and they’re essential for keeping records organized. 

Providing a timely and well-documented receipt also makes your club appear professional and organized. In turn, you’ll be able to more easily build trust with donors and encourage them to give again in the future. After all, donors need to be confident that you’re acknowledging and managing their contributions properly. 

On that note, here are a few tips to help you create compliant receipts:

Include Key Organizational Information

Donation receipts have to include a few key pieces of information, such as:

• The club’s Employer Identification Number (EIN)
• The donation amount
• A note on whether goods or services were provided 
• The name of the donor

It’s also important to include the date of the donation, especially if someone is making a large contribution or making donations toward the end of the year. Donors need this information when filing their taxes and must be able to demonstrate which tax year the contribution applies to.

Standardize Your Forms to Promote Consistency

You don’t have to get fancy with your donation receipts, but you should adopt a standard form to make things easier on your treasurer and donors. You can use a standardized receipt book or create a custom donation receipt template if one of your club members is tech-savvy. In either case, just make sure you are consistently issuing the same type and format of receipts. 

Consistency helps streamline recordkeeping and ensures that all relevant details are always included on each receipt. If all of your receipts feature the same format, it will be easier to reconcile accounts and maintain transparency in reporting. 

Be Detailed (to an Extent)

If a donor plans on claiming a tax deduction, they’ll need proof that they’ve provided goods or services to your club. That’s why you need to include a list of what the donor gave your club on the receipt. 

You should be specific when addressing details like the number of items received (such as how many cases of sports drinks or water they gave the club, for instance), but you don’t want to include things like retail prices. Let the donor handle that on their end. 

This helps avoid disputes about the value of donated goods. By listing the items without attaching a dollar amount, you keep the receipt simple and allow the donor to determine the fair market value of the items they contributed. 

If a donor contributed services rather than goods, note that on the receipt as well. While services may not be tax-deductible, acknowledging their contribution shows your appreciation and helps maintain accurate records of what was given to the club. 

Track Receipts With Booster Club Software

You need to keep up with donations and receipts for transparency’s sake, but saving physical receipts can create a paperwork nightmare. Instead, we suggest using booster club software that includes document management tools so that all of your important documents and records stay in one convenient location. 

The best programs can automate receipt generation, making it easier to send out timely acknowledgments after each donation. You can also keep track of which donors have received receipts and who may need a follow-up. 

Standardize Your Non-Profit Donation Receipt

Keeping receipts in order is not just about doing right by your donors; it also sets your club up for success come tax time. With each receipt you send, you’re keeping your club’s financial playbook organized and strengthening your reputation with donors.