Updated August 24, 2023
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 (3 steps)
- Accept the Donation from a Recipient
- Deliver the Written Acknowledgment of the Contribution
- Inform the Recipient about Recordkeeping
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.
2. Deliver the Written Acknowledgment of the Contribution
3. Inform the Recipient about Recordkeeping
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)