Cash Donation Receipt

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Updated July 11, 2022

A cash donation receipt provides written documentation of a cash contribution from a donor to a charity or organization. The cash donation receipt assists in proving the authenticity of the transaction 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 nonprofit entity with 501(c)(3) classification.

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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.

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

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.

Step 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.

Step 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.

Step 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)

How to Write a Cash Donation Receipt

Download: Adobe PDF, Microsoft Word (.docx), Open Document Text (.odt)

1 – Download The Cash Donation Receipt To Your Machine

Save the template pictured on this page to document a cash donation to your Charity Organization. The text-links listing the three file types “Adobe PDF,” “Microsoft Word (.docx),” and “Open Document Type (“.odt”) provide an option for the program you wish to use to edit this paperwork.

 

2 – Name The Organization Accepting The Cash Donation

We will need to name the Charity that has accepted the cash donation being discussed however before doing so, the “Date” of receipt must be solidified. Thus, document the calendar day that the Charity received the cash.      The “Organization Name” line will require the full name of the entity that this cash donation was made to. Provide this identity (including its suffixes) accordingly.     The Organization’s mailing address is the next area of focus. Utilize the two address lines here to list it properly.       Lastly, consult your records or the IRS Website (or both) and produce the Organization’s Entity Identification Number on the line labeled “EIN.”       

 

3 – Document The Concerned Cash Donation

The second area of this receipt, “Donation Value,” will allow a clear-cut presentation of the donation being made. Verify the funds (physically count the money) then write out the received amount on the first blank space in this section.       

Re-enter the cash amount received on the blank line attached to the dollar sign in the parentheses.     

The full name of the Donor (whether it is an individual or an entity) must be produced on the line corresponding to the words “Donated By.”   

The final request for content in this section will be the mailing address of the Donor. Provide this to the blank line labeled “Donor Address.”     

 

4 – Further Define The Charity Before Providing Authentication

The third area of this receipt, “Organization Type,” is composed of two basic statements. Each one will define the Organization in a different way and is attached to a checkbox. You must check the box that best describes the Organization that received the above cash. If it is a “Classified AS A 501(c)(3) Non-Profit Organization” by the I.R.S. then mark the first box. If it is “Not Classified As A 501(c)(3) Non-Profit Organization” in this way, then mark the second checkbox. Notice in our example, the Organization accepting the cash donation has been dubbed a 501(c)(3) Non-Profit meaning there is a high likelihood that this will be a tax-deductable donation.            The “Authorized Signature” line requires that the individual who has received the cash on behalf of the Organization sing his or her name.         This Representative must also print his or her name on the “Representative’s Name” line.       Lastly, the position held by the Signature Representative should be delivered on the blank line labeled “Title.”