Get the free Donation Handling Procedures - mercycorps

This document outlines the procedures for handling donations for community fundraisers benefiting Mercy Corps, including tips for efficient fundraising, submission processes, and tax receipt handling.

How to fill out donation handling procedures

How to fill out Donation Handling Procedures

1. Begin with outlining the purpose of the donation handling procedures.
2. Identify the types of donations you will receive (monetary, goods, services).
3. Establish a clear process for accepting donations, including who is responsible for receiving them.
4. Create a documentation process for recording all donations, including details such as donor information and donation amounts.
5. Develop guidelines for the proper storage and management of donated items.
6. Implement a system for acknowledging and thanking donors, including how and when to send thank you letters.
7. Ensure compliance with any legal or tax requirements related to donations.
8. Provide training for staff or volunteers on the donation handling procedures.

Who needs Donation Handling Procedures?

1. Non-profit organizations looking to establish transparency in their donation processes.
2. Charities seeking to ensure proper handling and acknowledgment of contributions.
3. Fundraising teams that need clear guidelines for managing donations effectively.
4. Administrative staff responsible for documenting and reporting on donations.
5. Volunteers who will be involved in the donation receiving and processing activities.

People Also Ask about

How do you acknowledge an in-kind donation?

Here is a simple example of an appropriate in-kind donor acknowledgment: “Thank you for your generous contribution of [detailed description of goods/services], received by [name nonprofit] on _ [date of receipt]. No goods or services were provided in exchange for your contribution.

What is the difference between a donation and an in-kind donation?

In-kind giving refers to donating goods or services instead of monetary funds. This type of giving can include tangible items, such as food, clothing, furniture, or toys, and professional services like volunteering your time or expertise.

How are in-kind donations accounted for?

The revenue should be reported in the period in which the donation is made and the expense when the donation is used. In the case of a capitalizable item, such as a building or construction equipment, the donation would be recorded as revenue and as an asset on the balance sheet, rather than under expenses.

What are the IRS rules for in-kind donations?

For any contribution of $250 or more (including contributions of cash or property), you must obtain and keep in your records a contemporaneous written acknowledgment from the qualified organization indicating the amount of the cash and a description of any property other than cash contributed.

What are the best phrases to ask for donations?

I'm writing to ask you to support me and my [cause/project/etc.]. Just a small donation of [amount] can help me [accomplish task/reach a goal/etc.]. Your donation will go toward [describe exactly what the contribution will be used for]. [When possible, add a personal connection to tie the donor to the cause.

How much does GoFundMe take on a $100 donation?

GoFundMe automatically takes 2.9% + 30 cents from each donation as a transaction fee. So if you donated $100, GoFundMe would take $2.90 plus 30 cents for a total of $3.20 (for handling the donation). $96.80 would go to the person in need.

How do you handle in kind donations?

Proper process for documenting my in kind donation to a nonprofit? Issue them an invoice for the work done. They record this as a contracting or legal and professional expense. Issue a credit memo forgiving the invoice with a memo that it is an in kind donation. They record this as Donations of Good and Services.

How do you handle donors?

7 tips to improve your donor management strategy Set realistic goals. Track metrics. Invest in donor management software. Ensure donors know the impact of their gifts. Segment donors to personalize communications. Regularly update donor information. Communicate with donors regularly.

For pdfFiller’s FAQs

What is Donation Handling Procedures?

Donation Handling Procedures are a set of guidelines that outline how donations should be received, processed, recorded, and managed by an organization to ensure transparency and accountability.

Who is required to file Donation Handling Procedures?

Organizations that receive donations, including non-profits, charities, and other entities, are typically required to file Donation Handling Procedures to comply with local regulations and best practices.

How to fill out Donation Handling Procedures?

To fill out Donation Handling Procedures, organizations should gather all relevant information about the donation process, define roles and responsibilities, document protocols for receiving and documenting donations, and ensure compliance with applicable regulations.

What is the purpose of Donation Handling Procedures?

The purpose of Donation Handling Procedures is to establish a standardized approach for managing donations, ensuring that they are handled ethically, recorded accurately, and reported in compliance with legal requirements.

What information must be reported on Donation Handling Procedures?

The information that must be reported on Donation Handling Procedures includes donor details, donation amounts, types of donations, date of receipt, purpose of the donation, and any conditions attached to the donation.