Create Your Donation Invoice Template for NPOs Effortlessly

Donation invoice template for NPOs

[Music] hey everyone how's it going I'm attorney Audrey Chism with Chism law firm and we help establish individual start nonprofits that impact the world all right I received another question and this question is how do nonprofits accept donations like how do you receive money so maybe you're thinking about starting your own nonprofit or maybe you realize that you want to you know get 501c3 tax-exempt status so that your donations can be tax-exempt but either way you just want to make sure you're doing it right as far as accepting donations so here's what you need to keep in mind okay the first thing you want to give people is a receipt okay you want to give them a receipt and basically a receipt just says who gave you the money and how much they gave you and the date that they gave you the money as well as what the purpose is for the money okay so the good news is is if most donations are made now you know through your website or something so most websites and merchant processors will automatically just kind of email them out of receipt for that donation but that's something that you want to do if someone you know writes a check at an event or just hand you cash okay so that's the first thing you want to give them a receipt and then the second thing that you want to do at least that we encourage our clients to do is that you give them a contribution statement okay now you definitely need to give them a contribution statement if that donation was a cash donation it was over two hundred and fifty dollars all right and basically what the contribution statement does is it's just a formal kind of like a letter from your nonprofit and we like to use it for you know a couple of reasons one it's it's great because it meets the IRS requirements okay so it says the person that gave it to you the amount that they gave you it has the date on it and then it lets you know let's let's let the person know that hey you know no goods or services were received for that donation and that's really important because the IRS in order for it to be something that they can write off they're going to want to know that it was a true donation and not just something that they received in exchange for a good or service so that's the contribution statement but another really cool thing about a contribution statement is that it serves as a marketing tool right because in that same statement you can also talk a little bit about your organization you can have some bullet points and highlight some of your accomplishments and how their contribution is making an impact that's something that really a relationship with the donor and encourages them to want to give again alright so just a quick tip on how to properly accept donations for your nonprofit I hope this was helpful I'm liftin if you've been on the fence or if you're ready to start your nonprofit we would love to help you give us a call at the number on the screen or visit the website that's on your screen or if you already have a non-profit and you just want to apply for 501c3 status reach out we'd love to help or if you already have both of those things and you're ready to get some funding you want to get some grants etc reach out to our team at the information below we'd love to speak with you an absolute free consultation we can learn about your goals and let you know how we can help alright I hope you have an amazing day - leaving the world better and brighter than we found it [Music]