What DonorFinch can and can't say about taxes

We get asked tax questions often. Here is what DonorFinch does, and where it stops.

What DonorFinch does

• Prints the IRS-style acknowledgment on every receipt and statement: the amount, the date, your organization's name and EIN, and the sentence "No goods or services were provided in exchange for this contribution."
• Keeps receipt and statement numbers sequential and never edits a receipt after it's issued (corrections are void-and-reissue), so your records hold up.
• Lists in-kind gifts by description without a dollar value, because the donor is responsible for valuing them.
• Nets refunds out of totals.

What DonorFinch does not do

• Decide whether a gift is deductible. That depends on your organization's tax status, the donor's situation, and whether they received anything in return.
• Handle "quid pro quo" gifts. If a donor receives goods or services (a gala dinner, an auction item, a membership with benefits), the law requires you to state the value of what they received and that only the excess is deductible. DonorFinch's receipt language says no goods or services were provided, so don't run those gifts through a standard form without adjusting your process. Ask us, or your accountant, before an event.
• Know whether you are a 501(c)(3). The receipt text asserts that you are. If you're a different kind of nonprofit, a fiscal-sponsored project, or not yet approved, tell us before you take gifts.
• Give tax advice, to you or your donors. Neither can our support team or our AI assistants.

What to tell donors who ask

"Our receipt shows the amount and date and confirms we're a 501(c)(3). Whether and how much you can deduct depends on your own tax situation; please check with your tax adviser."

When in doubt

Email support@donorfinch.com describing the situation (without card numbers or Social Security numbers). We'll explain what the software does and doesn't do, and tell you plainly when a question is one for an accountant or attorney.