Nonprofit Donor Receipt and Acknowledgment Compliance Audit
Inadequate donor receipts can disallow donor tax deductions and damage donor relationships. IRS substantiation requirements for charitable contributions are strict. This quarterly audit ensures all donor receipts meet IRC Section 170 requirements.
- Industry: Nonprofit
- Frequency: Quarterly
- Estimated Time: 2 hours
- Role: Development Director / Finance Manager
- Total Items: 26
Required Receipt Content
Verify all receipts contain IRS-required information.
- Organization name and EIN on all donor receipts?
- Date of contribution on all receipts?
- Cash contribution amount stated on receipt?
- Statement whether goods or services were provided in exchange for contribution?
- For donations with no goods/services exchanged, statement 'no goods or services were provided in exchange' included?
Quid Pro Quo Disclosure
Verify quid pro quo disclosures are correct.
- IRC Section 6115 quid pro quo threshold ($75) known and applied?
- Fair market value of goods/services calculated for all events and premiums?
- Deductible portion clearly stated when quid pro quo applies?
- Event tickets, gala dinners, and golf tournaments include proper quid pro quo disclosure?
Non-Cash Gift Documentation
Verify non-cash gift documentation.
- Non-cash gifts described (not valued) on acknowledgment receipt?
- IRS Form 1098-C provided for donated vehicles over $500?
- Donors of non-cash items over $5,000 informed of Form 8283 and qualified appraisal requirement?
- In-kind service and volunteer contributions documented even though not deductible?
Receipt Timeliness
Verify receipts are provided timely.
- Donor receipts sent within 30 days of gift?
- Year-end contribution receipts sent by January 31 following gift year?
- Receipts for $250+ contributions received by donor before tax return filed?
- Recurring or pledge donors receive receipts for each individual payment?
Receipt Systems and Templates
Verify receipt systems are functioning.
- Automated receipt system sending receipts for all online donations?
- Receipt templates reviewed by legal or CPA for IRS compliance?
- Different templates for cash, non-cash, and quid pro quo gifts?
- CRM or donor database tracking receipt delivery and acknowledgment?
Special Gift Circumstances
Verify special gift scenarios are handled properly.
- Qualified Charitable Distributions from IRAs acknowledged with specific language?
- Grants from donor advised funds receipted to sponsoring organization not individual?
- Memorial and tribute gifts acknowledged to donor and family notified per policy?
- Corporate matching gifts properly receipted to company?
- International donor receipts reviewed for any applicable treaty or reporting requirements?
Related Nonprofit Checklists
- Nonprofit Annual Audit Readiness Review
- Nonprofit Annual Budget Development and Board Oversight
- Nonprofit Financial Internal Controls Annual Review
- Nonprofit Gift Acceptance Policy Compliance Review
- Nonprofit Monthly Financial Reporting Package
- Nonprofit Fundraising Event Planning and Compliance Checklist
- Nonprofit Volunteer Background Screening and Risk Assessment
- Nonprofit Volunteer Scheduling and Retention Program Audit
Related Financial Management Checklists
- Nonprofit Grant Tracking and Fund Accounting Ledger Review - FREE Download
- Nonprofit Annual Audit Readiness Review - FREE Download
- Nonprofit Annual Budget Development and Board Oversight - FREE Download
- Nonprofit Financial Internal Controls Annual Review - FREE Download
- Nonprofit Gift Acceptance Policy Compliance Review - FREE Download
- Nonprofit Monthly Financial Reporting Package - FREE Download
- Nonprofit Financial Policy Annual Review and Update - FREE Download
- Nonprofit Investment and Endowment Management Review - FREE Download
- Nonprofit Accounts Payable and Disbursement Controls - FREE Download
- Nonprofit Payroll Processing and Compliance Review - FREE Download
Why Use This Nonprofit Donor Receipt and Acknowledgment Compliance Audit?
This nonprofit donor receipt and acknowledgment compliance audit helps nonprofit teams maintain compliance and operational excellence. Designed for development director / finance manager professionals, this checklist covers 26 critical inspection points across 6 sections. Recommended frequency: quarterly.
Frequently Asked Questions
What does the Nonprofit Donor Receipt and Acknowledgment Compliance Audit cover?
This checklist covers 26 inspection items across 6 sections: Required Receipt Content, Quid Pro Quo Disclosure, Non-Cash Gift Documentation, Receipt Timeliness, Receipt Systems and Templates, Special Gift Circumstances. It is designed for nonprofit operations and compliance.
How often should this checklist be completed?
This checklist should be completed quarterly. Each completion takes approximately 2 hours.
Who should use this Nonprofit Donor Receipt and Acknowledgment Compliance Audit?
This checklist is designed for Development Director / Finance Manager professionals in the nonprofit industry. It can be used for self-assessments, team audits, and regulatory compliance documentation.
Can I download this checklist as a PDF?
Yes, this checklist is available as a free PDF download. You can also use it digitally in the POPProbe mobile app for real-time data capture, photo documentation, and automatic reporting.