Things are always changing in life as well as in fundraising. This new twist will be something you should keep your eyes open for, and begin to prepare now for the change in January, 2007!

Starting in January, 2007, donors will be required to have receipts for all cash donations, regardless of the value. Previously, donors were only required to have a receipt for cash donations over $250 to back up their itemized deductions on their tax forms. Now, each cash donation included on the itemized form must be backed by a receipt, whether that is a credit card slip or cancelled check.

This should not detract from the regular cash donations many groups receive in food bowls or fish tanks during adoption or tabling events at Petsmart or Petco. But, be prepared to offer a receipt with your group’s name on it and the amount of the donation, if asked. You could also offer it to your donors, and encourage them to sign up for your mailing list! This is a great opportunity to turn casual donors who drop $5 into a bucket and make them regular donors, members of your group, and actively involved with your group! Don’t believe the hype that this is a new hassle from the government. Think of it as an opportunity to learn more about your donors and grow your donorbase! (Send a thank-you note to Uncle Sam, if you’d like!)

Break out your old box of donation receipts, or contact your local printer to create new ones. You can print out your own receipts with your computer, creating a ticket stub section for your own records and tear off the longer receipt for the donor. Carbon copy duplicates might be more effective in keeping track of donations and your new friends, the casual donor!

Here’s the wording from the TurboTax website:

“In case you missed it, the President signed the new Pension Protection Act on August 17th. Most of the 400 pages of the Act deal with the under funding of pensions. However, if you keep paging through to page 301, you will see a section titled: Modification of Recordkeeping Requirements for Certain Charitable Contributions. Yes, that has nothing to do with pensions but it does affect the charitable contributions that you deduct on your tax return