Refunded donations can be tracked in one of two ways: modifying the original donation record or adding a negative donation amount in a separate record.
In our opinion, the best way is to go back and modify or remove the original donation record. For any record keeping, the Notes tab would be the proper place for a detailed note explaining the situation. If the Comment field on the donation tab is not being used for something else, you could use this field to make small notations as well if the record is not deleted entirely. This method will make sure the donor is accurately acknowledged for the tax deductible donation that they may be eligible for.
If you choose to use the negative donation route, you may run into problems with the calculated Tax Deductible Amount field when generating Contribution Statements. If you use the bulk creation tool found under Reports > Donation Activity > Contribution Statements, the Tax Deductible Amount field will not consider negative donation amounts in the calculations. This may lead to reporting a higher Tax Deductible Amount than your donor is eligible for. If you need to run a contribution statement that includes negative donation amounts in the tax deductible amount calculation, you will need to run the statement individually by going to Community > Contacts. Select the contact, and move to the Donation tab. At the bottom, click the Contribution Statement button. This version of the tool will accommodate you by factoring negative donations into the tax deductible amount calculation.
Issue a Refund for an Online Donation
In kind donations are a way for people to donate goods and services rather than cash donations.
Learn more about in kind donations on our blog: In Kind Donations: A Complete Guide
How to track in kind donations in DonorSnap
- Create a Donation Type of “In Kind,” “InKind,” or “In-Kind”
(Maintenance > Site Setup > Field and Screen Customization > DonorSnap Site Lookups).
- Enter the donation as you normally would, but choose the donation type you created in step 1.
- Donation Amount Field:
- Some organizations will put the value of the donated item in the Amount field,
- Many organizations will put a zero in the Amount field and reference the value solely in the comments.
- Do not use the Value Received Field for In Kind Donations.
Notes about in kind donations
By using the Donation Type field to identify all in kind donations, you make it easy to exclude those donations in reports for cash purposes.
DonorSnap Blog – In Kind Donations: A Complete Guide
How to Customize System Dropdown Fields
Tracking matching contributions is very similar to tracking soft credits. First create a Donation Type of “Matching Gift”
Maintenance > Site Setup > Field & Screen Customization > DonorSnap Site Lookups
- When the employee makes a contribution, record a normal donation.
- When the matching check is received from the employer, add a donation type of Matching Gift.
- Use the comments box to denote which employee was the original donor.
This helps you look at the employers record and know if they are a supporter of your organization or if the support is solely coming though a matching employee program.
Nancy, donor, will first make a DonationType = Donation
THEN the Matching company will make their DonationType = Matching Gift, maybe a comment indicating towards “Nancy Thompson”
Some organizations will also take a 3rd step to add to Nancy’s record, amount and DonationType = Soft Credit, comments of that Matching Company.
The recommended way to track soft credits is fairly simple.
First, create a Donation Type of “Soft Credit”
Maintenance > Site Setup > Field and Screen Customization > DonorSnap Site Lookups.
Record the donation as normal under the appropriate Contact who made the donation.
THEN you would record a second Donation using the “Soft Credit” code on the individuals account who may have directed the money your way. Most organizations will also use the comments to indicatewhere the soft credit came from.
By using one specific Donation Type of Soft Credit, you can then accurately run hard dollar donation received reports by excluding Donation Type Soft Credit from the reports.
What exactly is a soft credit?
A soft credit is a way to acknowledge all parties involved in making a decision to donate, not just the donor that physically gives the gift. A hard credit would acknowledge the actual donor who gave the gift. A soft credit would not be entitled to a tax deduction. Here are a few example scenarios that you might encounter:
- Each member of the board of directors has fundraising goals for the year. When they solicit a donation from another entity, a soft credit is added to track their goal progress.
- Gifts made through an intermediary nonprofit organization such as United Way.
- A company makes a donation to the charity of your choice after a sale.
- In lieu of wedding/birthday/shower gifts, make a donation to one of three charities.
- When tracking spouse records separately a soft credit could be applied in one account and a hard credit in the other