When sponsorships are solicited by charitable organizations, companies and individuals may respond to such noble calls. Some charitable organizations make it very conducive for the donors to respond positively with a tax exemption on every donation made to their cause.
A tax donation form is usually given to the donors by the charitable organizations so that the donors can enjoy a tax exemption from the donation made. This is a great incentive to the donors who are encouraged to donate generously and the amount can be exempted from the tax.
The tax donation template will record the details of the donation such as:
* Charitable Organization’s Name & Address
* Donor’s Name & Organization (if applicable)
* Donor’s Address & Contact Number
* Donation amount
* In favor of
* Form of donation
* Description of donation
* Date donated
* Approved by
A tax donation can list out the type of donation specifically, such as cash, check, credit card, services, products or advertisement. The value of the type of donation needs to be specified so that the value can be approved and verified for tax exemption.
Normally a slip of acknowledgement from the charitable organization is sent to the donor for his tax filing purposes. It is up to the government to recognize the donation, especially if it is other than financial type, and to grant exemption for the personal tax.
Companies can also opt for tax donations.
Consider the attached sample template for your convenience.