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Donation Drive

  • 1.  Donation Drive

    Posted 12-02-2021 10:29 AM
    Hello,

    My org does not do a lot of event or giving drive donations but has been invited to participate in an event where attendees will have the option to make a donation at the event. The host company wants to collect any cash donations themselves and then write a check to us equaling the amount collected. Are we able to provide tax receipts for the cash donations made at the event, even though the money will eventually come to us from the host company?

    ------------------------------
    Anne Pires
    Associate Director, Investor Relations
    Year Up
    apires@yearup.org
    ------------------------------


  • 2.  RE: Donation Drive

    Posted 12-02-2021 10:58 AM
    You can sign an agreement with the host that says that they are acting as your agent, to receive these donations on your behalf. However, if they're collecting cash, you'll need to think through how you're going to provide receipts and also how you will capture the donor information into your database. You might also want to hear from the business how they plan to handle the cash receipts - what are their control procedures? Note that in this setup, the business does not receive a tax letter, since they are not in fact the donor, they're just an agent, similar to your credit card processor.




    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:






  • 3.  RE: Donation Drive

    Posted 12-02-2021 11:33 AM
    I agree with all points.

    You will also want to work out the details of receiving exact breakdowns of who paid what (if they act as your agent).  You will also need to ensure that they either capture the payment mechanism and send you copies or are fully trained and oriented on matters of determining the legal donor.

    If tax deductibility is not a concern, this could be treated as a "proceeds to benefit" event.  The company can send a lump-sum payment with the amount recorded on a "Various Donors" record. No one receives a gift receipt, but at least you can reflect the philanthropy in your fundraising totals.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987







  • 4.  RE: Donation Drive

    Posted 12-03-2021 02:11 PM
    We have had this in the past where the company adds some additional funds to the donation to make it a round, or much larger, donation number.  You may want to deterine in advance if they would like a tax receipt for their portion and to ensure they write separate checks and provide clear paperwork.  
     
    At any event where you might want to collect donor contact information or there might be donors wanting a tax receipt, you will want to work with company to have a process in place that meets these needs, and perhaps have a staff member or two present to be in charge of the process...
     
    My 2 cents after a couple of situations created by eager volunteers who thought they knew more than they did....
     
    Teresa Hinze
    Executive Director
    Community Tax Aid
    1012 14th St NW Suite 425
    Washington, DC 20005
    202-547-7773