Donation receipts in the USA
For your members to claim income tax relief on any charitable donations of more than $250, that they have made to your organisation, they will need a donation receipt from you. This receipt needs to fulfil certain criteria.
Requirements in the USA
It is not a legal requirement for your organisation to provide donation receipts in the USA, but you may be asked by donors to provide one. Creating these manually takes a lot of time, so any donations made through Hivepass automatically generates a receipt that is emailed to the donor, saving you the hassle!
Donation receipts are required to show:
- name of the organization that received the donation
- the Federal Tax ID # of the organization i.e: 12-3344789
- a statement that the nonprofit is a public charity recognized as tax-exempt by the IRS under Section 501(c)(3)
- name of the donor
- the date of the donation
- donation amount
- description (but not value) of non-cash contribution
- statement that no goods or services were provided by the organization in exchange for this donation
For more information on charitable donations and your obligations, visit the Charities and nonprofits section of the IRS website.
NOTE: If a donor has an annual membership with your nonprofit organization they don’t need a receipt if the annual cost is $75 or less and goods or services were provided in exchange.
It’s easy to set up in Admin with the following steps;
- Go to Settings> Donation Settings
Enter copy into the text boxes on the left. These will show before and after a user donates. Keep it short, sweet and persuasive!
• 2a is the donation blurb that shows when a user navigates to donate via the side menu in the app. • 2b is copy about the organisation that a user will see when they have scanned a QR Code or clicked a link (for example on a sign or in an email) to open the donate.hivepass.app page in a browser.
• 2c is an expansion of 2b that the user will see if they click 'find out more' below the 2b copy.
• 2d is the 'transparency' copy that shows when a user clicks on 'where does my donation go?'
• 2e is the Thank You message a donor sees after donating.
See the below image examples for each of the above (2a-2e).
- Toggle on ‘We are a recognised by the IRS as a tax exempt charity’
- Enter the organisation name as recognized by the IRS
- Enter the address of the organization
- Federal Tax ID Number i.e: 12-3344789
- Enter your authorised person’s name
- Enter their title, i.e: President or Treasurer
- Upload your organisation / letterhead logo
- Toggle on ‘Send Donation Receipt Email’ to ensure that the donor receives a receipt
- Toggle on if you wish a copy of the receipt to be sent to an email address of your organisation. The contact listed here is set in Settings> Hivepass Support Contacts
Resending donation receipts
A donation receipt can be sent to a member at any time.
- Go to Community> Contacts and select the relevant member
- Open the Financial Transactions tab in their profile
- Select Resend Donation Receipt
- Confirm
