Check Cashing Best Practices for Foundations

Jenn Selfinger
Jenn Selfinger
Third Anniversary Name Dropper Facilitator 1 Blackbaud Pro Certified
in Organizational Best Practices General Discussions

Question: If you are a separate Foundation, do you cash donation checks that are made payable to the main organization? We are having a debate and it is my belief that there is a long-standing practice at most nonprofits where donations are cashed by the fundraising arm despite the many variations of names that are listed. For instance, when I worked at Children’s Hospital Foundation, we would cash donations made out to Children’s Hospital. Same at Ohio State.

Any examples (current or past positions) where you have seen this done or not done would be helpful.

Thank you! ?

Comments

  • Anita Garcia
    Anita Garcia
    Sixth Anniversary Name Dropper Participant Facilitator 1

    @Jenn Selfinger I work for a community college foundation. If a donation comes in with either the college's name or the foundation's name, the donation is deposited by the foundation. We have had instances where the college accidentally deposits a donation into one of their accounts not knowing it was meant for the foundation, but those are rare instances.

  • Faith Murray
    Faith Murray
    Tenth Anniversary Kudos 5 First Reply Name Dropper

    @Jenn Selfinger, although we are not separate ourselves, my advice would be to keep documentation with each check verifying that it is in fact a donation. If it is a donation, then it would be in the donor's best interests for the foundation to receive it, since it would become tax-deductible without any possible tax confusion over goods/services received.

  • Whitney Shelton
    Whitney Shelton
    Kudos 3 Third Anniversary Name Dropper Participant

    @Jenn Selfinger I work for the EAMC Foundation which is the fundraising department for our local hospital, East Alabama Healthcare Authority. Any donations for the hospital come through the Foundation. Like Faith said, the gift is tax-deductible this way. It's the only way for us to track and know which funds have “x” amount of money.

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