A donation receipt is used by companies and individuals to provide proof that cash or property was gifted to an individual, business, or organization. Also, individual taxpayers use a donation receipt to provide a deduction on their State and Federal (IRS is the federal tax agency in the United States) income tax. If the donor decides to make a deduction for a fiscal tax year, the receipt must be kept for 2 years from the date the tax was paid. Hence, nonprofit organizations must seek effective donation receipt platforms that provide the necessary tools to issue prompt and accurate receipts.
- Donation receipts are of legal importance to donors and also of practical importance to nonprofit organizations.
- Nonprofits in the US are not obligated to acknowledge donor contribution
- By allowing your donors to view their donation details, you remind them of their impact and contribution to something significant.
What are the top donation receipt apps for nonprofits?
In this article, we will consider some donation receipt apps that nonprofits can consider for their organizations.
1. Funraise
Funraise is an easy-to-use mobile app that donors can use to view and manage their donations. It also allows organizations to review and resend donation receipts regularly. Donors can view all their donations to your organization and resend receipts to themselves anytime. This makes it easier for contributors to manage and plan their budgets.
Likewise, by allowing your donors to view their donation details, you remind them of their impact and contribution to something significant. Hence, Funraise is a great tool that makes it easy for donors to have control over their recurring donation subscriptions, including amounts, frequencies, and payment methods.
2. App Exchange
App Exchange allows you to email all your donors a tax receipt for the donations they made the previous tax year. To begin with, you can send all your donors an email in January listing all of the previous year’s donations to help them prepare for tax season. The App Exchange tool inserts a grid of last year’s donations into a custom field. Hence, you can use the template included in the package to email your donors through Salesforce or send donation receipts through your favorite email marketing tool.
3. Moon Invoice
Moon Invoice is trusted by over 1.5 million users worldwide. The donation receipt app makes it easy to design quick invoices at any time. As a result, users can design and send invoices just within a minute. Also, the solution is designed with an interactive dashboard that helps with business insights. Moon Invoice incorporates essential business tools such as invoicing, financial management, and taxation. The platform seeks to make invoice creation a child’s play.
4. GoCanvas
GoCanvas is an easy-to-use donation receipt app. Hence, tax-deductible donations and charitable deductions can be easily entered into an electronic record that includes the donor information, a description of the contribution, the condition of the donated items, and the value of each donation. Also, the donation receipt template makes it easy to process donations from anywhere and allows benefactors to provide proof of the deduction on their tax returns. GoCanvas is a big time saver for nonprofits that accepts online donations.
5. Dext
Dext Prepare provides a brilliantly simple way to bring all your paperwork together in a standardized, digital format. Whether it’s a donation receipt, an invoice, or a bank statement, upload it and Dext will extract the data you need, then send it to your accounting software. This allows you to get accurate numbers without having to sit and enter them manually. Also, you get all the figures you need digitally. In addition, the data is stored for 7 years using bank-level encryption.
Conclusion
Donation receipts are of legal importance to donors and also of practical importance to nonprofit organizations. However, nonprofits in the US are not obligated to acknowledge donor contributions. On the other hand, without a written acknowledgment, donors can’t claim their tax deduction. Therefore, it’s considered a best practice in donor stewardship that organizations assist their donors by providing timely, written donation receipts.
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