DONATION U.S. partially-eligible gifts

This posting is only for the users in the USA.

I just received a call from a potential user, who has donations where someone has bought a brick for $25. The value of the brick is $15, so the receiptable (tax-deductable) amount is only $10. But they want the receipt to somehow reflect all of that.

For Canadian users, the Canada Revenue Agency has very specific ways this type of gift is to be receipted, and DONATION handles that using the Eligible Amount field and special wording on the receipts.

But for U.S. users, I’m afraid I’m really not clear about whether there is any standard way that this should be represented on a receipt. You can use the Eligible Amount field, but the receipts by default show only the total amount ($25 in this case). You can edit the mail-merge receipts to show all three amounts. They are: Eligible Amount – $10, Advantage Amount (what they received) – $15, and total Receipt Amount – $25. But I don’t know what that should look like.

Any suggestions (specific, please!)?

Thank you.

4 thoughts on “DONATION U.S. partially-eligible gifts

  1. Dan,

    I run across this dilemma with catered dinners where the member pays a “suggested donation” amount.. it is ultimately up to the member because state sales tax laws don’t allow us to “charge for the meal” without collecting sales tax. Some pay more than the suggested amount.. most do not.. and I don’t really know unless someone tells me.

    If someone wants it correct, I just enter two donations – a receiptable and non-receiptable entry. Otherwise, it is all entered as non-receiptable. I haven’t had any complaints as it only happens a couple of times per year and it is not much money.

    Unless there is a significant problem, I wouldn’t mess with it.. seems there is a way around the issue when it needs to be addressed.

    • No, John. They are donating real cash (the $25). But that cash buys a brick for $15, with thus only the remaining $10 being a tax-deductible donation. It’s exactly the same as split receipting here in Canada, e.g. for a fundraising dinner or whatever, except there is no built-in handling of that in the receipts for the USA.

  2. I realized (and told the user who was asking about it) that the same mechanisms that work in Canada, using the Eligible Amount field, and some extra lines to show the total received, advantage amount and eligible amount on the receipt, will also work in the USA. The only issue is how to word those extra lines on the receipt, and of course that you would have to switch to the mail merge receipts and add in those lines.

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