If you are not a charity, you cannot issue a charitable donation receipt. It is not a simple matter to become a charity. You have to do a lot of documentation and you have to get the approval of the government agencies for it. It has now become a longer process than in the past.
So, you can issue donation receipt to anybody who gives you anything. But you cannot tell people that they are allowed to deduct the tax, if they are not a charity. Therefore, the term charitable donation is only in use of the charity organizations.
You can issue donation receipts for anything, such as, somebody gives you money etc. You can surely give them receipt but that does not guarantee you about the deductions that are possible. So, you have to be very careful that people do not get wrong impression.
A receipt is a receipt, but a charitable donation receipt has actually a number on it that the government issue. Only in this case the deductions are possible. So, it is very important to stay careful.
Do only charities issue Donation Receipts?
Charity is a specific thing that is a creation of an agency. It comes under the societies act. You have to take permission for recognition of your agency. For this purpose, you can issue donation receipt of which people can then deduct from their personal tax returns.
If you do not have the charity number or the donation receipt, then you can issue the receipt of money that people give you. But, do not give them the impression that they can deduct this amount. The deduction can only be possible if the donation receipt has a number.
Issuing a receipt and giving people the impression that it is a charitable donation receipt is a complete fraud. Obviously, no want wants to commit fraud. When you take a look to do your own personal income tax return, then watch out for those organizations that issue you receipt that says not for income tax purposes.
This means that the money you have given them is not a tax deduction. They are more or less upfront about it. So, if you are not running a charity organization, don’t be issuing donation receipts and explaining people what they can deduct money on the return.
Free Donation Receipt Templates
Here are previews and download links for these free Donation Receipt Templates.
SO, it is to conclude that the charity we make is deductible if your itemized deductions are on your tax return. It can actually reduce any taxes that you owe. Only if you itemize your deductions, then the deductions can b made. In addition, you must also have the itemize records. So, make sure that when you donate money, you get a donation receipt or record that shows the name of the organization, the amount you give them and the date on which the payment is made. For larger donations, then they require specific documents. The record documents depend on the thing that you are donating. You have to learn about it in detail before making donations.
Here are some more previews and download links for these free Donation Receipt Templates.