How can a club issue donation receipts?
July 14, 2023 | 60,00 EUR | answered by Björn Ley
Dear tax advisor,
I am Selma Sontheimer and a board member of a non-profit organization dedicated to promoting education and culture. Lately, we have been receiving more requests from donors who wish to receive a donation receipt for their contributions to our organization. Unfortunately, we have never issued donation receipts before and are unsure of how to do so correctly.
Our organization is recognized as a non-profit and meets the requirements for issuing donation receipts. We maintain proper bookkeeping and are registered in the association register. However, we lack the knowledge and experience to issue donation receipts correctly.
Our concern is that incorrect issuance of donation receipts could potentially lead to legal problems or difficulties for our donors in claiming tax deductions for their donations. Therefore, we are urgently seeking clear guidance or support on how to issue donation receipts as an organization, in order to provide our donors with accurate documentation for their donations.
Could you please explain to us the specific steps we need to take as an organization to issue donation receipts? Are there certain forms or requirements that we need to adhere to? How can we ensure that the donation receipts will be accepted by the tax authorities and that our donors will not encounter any issues? We are grateful for any assistance and advice you can provide us on this matter.
Thank you in advance.
Sincerely,
Selma Sontheimer
Dear Mrs. Sontheimer,
Thank you for your inquiry regarding the issuance of donation receipts for your non-profit organization. It is highly commendable that you are dedicated to promoting education and culture and receive donations to support your work. It is important that your organization follows the correct procedures to issue donation receipts and ensure that they are recognized by the tax authorities.
First and foremost, it is important to note that donation receipts can only be issued for donations that are voluntary and made without any quid pro quo. This means that donors must not receive any direct benefits in exchange for their donation, such as products or services. Donation receipts can only be issued for monetary donations or donations in kind.
In order to issue donation receipts as a non-profit organization, you must ensure that your organization meets the requirements for tax-exempt status. This includes having a statute that pursues charitable purposes, properly documenting your income and expenses, and regularly preparing financial statements. It is good to hear that your organization already maintains proper accounting records and is registered in the association register.
To issue donation receipts, you must use a form that meets the requirements of the tax authorities. Generally, donation receipts must include certain information, such as the donor's name and address, the amount of the donation, the date of the donation, and the purpose of the donation. There are various template forms you can use, or you can create your own donation receipts as long as they contain all the necessary information.
It is important for your organization to ensure that the donation receipts are filled out correctly and completely to avoid issues with the tax authorities. You should also ensure that donors receive a copy of the donation receipt for their tax deduction purposes if needed. It may also be helpful to keep a copy of the donation receipt for your own records.
I recommend seeking advice from a tax advisor when issuing donation receipts to ensure that you comply with all legal requirements and avoid errors. A tax advisor can also assist you with other questions regarding association taxation and tax-exempt status.
I hope this information is helpful to you and wish you success in issuing donation receipts for your organization.
Best regards,
Björn Ley
Tax Advisor
