Your animal welfare organization likely depends on donations. And you may know that charitable contributions come in a variety of “flavors” that have different impacts for you. Read on for a brief rundown about accepting charitable donations.
First things first: Make sure you are registered according to your state and local laws. Nonprofits and charitable organizations should do all of their paperwork before soliciting money for fundraising.*
You can help make donations happen by making sure your financial information is organized and transparent. If you’re a tax-exempt organization filing annual IRS reports, you need to share the three most recently filed Form 990s if asked. In addition, listing your nonprofit on Guidestar, Charity Navigator, and the like will help donors feel their money is going to a place that is on the up and up.
Your organization may already have several ways of asking for and accepting donations. If not – or if you are looking for new ways to expand your fundraising – here are some ideas:
Any time of year is good for asking for donations. However, as we get close to the end of the year, people who want a tax deduction for donating to charity begin thinking about making charitable contributions. So, this is a good time to ramp up your efforts.
If you don’t already, put plans in place for providing donors with a written confirmation of their donation. This fulfills tax law and is just a good practice.*
Even if the donation is less than the $250 IRS requirement for receipt, a written confirmation will help your recordkeeping – and promote goodwill. Email is fine, but snail mail is even better. (Who doesn’t love getting a thank you in the mail?) Just include the donor’s name, the date, the amount, and a sincere thank you, along with your nonprofit or charity status.
If you receive goods or services instead of money, you should estimate the dollar value of the donation in your message. You might consider financial record keeping software or apps to keep everything straight.
Let’s say that instead of money (through Petoodle [link] or elsewhere), a donor provides you with an item – like from your Amazon charity wish list. This is called an in-kind contribution, and you can also provide a receipt for this kind of donation. For donors who want an acknowledgement of an in-kind contribution, you may want to create a form for them to fill out that includes all of your details and asks them to provide their name and contact information, item donated, dollar value, and date.
At Petoodle, we are all about making sure your animal welfare organization succeeds so animals will be taken care of. If you want to boost your charitable contributions, become a Petoodle member organization and increase your fundraising reach. Just click here.
*Please note this post isn’t meant to replace any tax or legal advice. Contact a CPA or attorney to double check that you are operating within the law and following best financial practices.