Organizations and Year End Tax Statements

Mary Chase · January 2021

I'm wondering what the best practice is for whom you send year end tax statements. I know we must include donors who made a single gift of $250+, but as far as Tax Statements go, do you send to organizations as well as individuals? Corps & businesses? Or only individuals. Thank you.

Mary Chase · January 2021

Also, I am referring to the Tax Statements sent in January, for tax purposes for the prior calendar year.

Thanks again.

JoAnn Strommen · January 2021

Mary, when I've done annual statements I've only done for individuals, specifically those requesting a statement and/or those who've given monthly during the year. I know some orgs send to all donors. I've not been at an org that has that procedure. If your purpose is an extra touch/info for tax purposes, the same info is potentially useful to a business as to any individual.

Side note: "I know we must include donors.." - if gifts have been previously receipted there is nothing additional that you 'must' do.

Will be following to see who/why receives from orgs and why they feel it's necessary.

Candy Sangster · January 2021

We only send to individuals that have given $250+.

Jennie Snapp · January 2021

We send them to every donor (individual and organization) that has donated a sum of $250 or more within the calendar year. It's also our chance to tell them everything that has been purchased/done with their donations during the year.

Spencer Lassen · February 2021

We send ours to donors who give cumulativesly $1k+ for the year calculated as hard credits between both members of a married household.

We send to anyone who has a recurring gift payment as we don't send receipts for recurring monthly CC charges.

We also will send to any employee donors, board members, or any constituent who has specifically asked for an annual tax summary.

Unless requested by an org we only send to individuals.

Candy Sangster · February 2021

Are your married couples housed on the same record or do they have separate records?

Jennie Snapp · February 2021

We send them to households, so married or single constituents. We include married couples on the same tax statement. It's up to them if they want to separate them, but no one has asked me to separate them like that before.

Sunshine Reinken Watson · February 2021

At the organization I work for now, we send to all organizations and individuals who gave any amount. At another organization I worked for, we didn't send an annual statement since we sent tax receipts throughout the year (we would have a few requests for them each year and I would produce those for donors).

Angela Tuttle · February 2021

We send a letter in January to each donor. If several people in a household have made donations they will each receive a letter and in a separate section of the letter any soft credits that they have will also be listed. If the donations have been recorded under one individual then the letter will be sent to the house hold and again any soft credits will be listed in a separate section.

Amelia Ketzle · February 2022

I believe we receipt each gift at the time, unless they have requested ‘Consolidated Receipts'. For those records, as well as anyone who had payroll-deduction or EFT giving, we send an end-of-year tax letter which totals their previous year's giving. These are broken into PD totals, EFT totals, and (for those people who receive this letter, which again is NOT everyone) any outright gifts they might also have had. I don't think we have historically sent an end-of-year letter to businesses at all, but with this new process, if they met any of the above criteria, they should get one of these letters, too.

Organizations and Year End Tax Statements

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