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Cash Donation Receipt

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Updated November 26, 2024

A cash donation receipt provides written documentation of a cash contribution from a donor to a charity or organization. The receipt proves the transaction's authenticity to the government should the donor wish to deduct the contribution from their total income. Tax deductions are only possible if the receiving organization is a 501(c)(3) nonprofit entity.

What to Include

A receipt provided by a charity or an organization accepting cash donations should include the name of the charity/organization, amount of the contribution as well as the date the contribution was made, and a statement advising that the organization did not provide any services or goods in exchange for the donation.

What Not to Include

The Donor’s Social Security Number or Tax Identification Number is not necessary to be provided on the acknowledgment.

How to Give a Cash Donation (3 steps)

It is the duty of the organization receiving the donation to issue a receipt for the donor’s tax purposes. After the receipt has been issued, the donor will be able to save for their records in the chance they are ever audited by the IRS.

1. Accept the Donation from a Recipient

If presented with an opportunity to accept a cash donation, the nonprofit organization should accept such a donation. Other donation forms may also be services or goods.

2. Deliver the Written Acknowledgment of the Contribution

The nonprofit organization is not responsible or required to provide acknowledgment and accurate record of the donation received. Each separate contribution greater than $250 will require its own separate acknowledgment, but it will be the donor’s responsibility to gather that information if they would like to utilize the donation for future tax purposes.

3. Inform the Recipient about Recordkeeping

Donors are responsible to maintain records, such as bank records or written communication from the applicable charity. It is the responsibility of the donor to acquire the written acknowledgment and written disclosure, as applicable (not all charities are required to provide), from the charities to which they are making donations.

Dangers of Donating with Cash

When donating in cash, individuals should endeavor to receive a receipt. If an individual has made substantial contributions (in excess of $250) in cash and has not received a receipt, they will not be able to utilize the information for tax purposes as they do not have written documentation of the exchange.

Written Acknowledgment – Sample

(Current Date)

(Name of the Nonprofit Organization)

(Position of the Nonprofit Organization)

(Street Address of the Nonprofit Organization)

(City, State, Zip Code of the Nonprofit Organization)

(Phone Number, Email of the Nonprofit Organization)

EIN: 00-1234567

To Whom It May Concern:

We have received your Cash Donation of $_______________

Please note  The ABC Fund is a non-profit organization and is registered with the Internal Revenue Service (IRS) as such under 501(c)(3). Your donation is therefore considered a Tax-Deductible contribution and all proceeds will help fund the new children’s park.

Please utilize the Employer Identification Number above to claim your tax deduction.

Cordially,

(Name)

(Nonprofit Organization Name)