| If you hope to someday win grants, or if you hope | | | | or she can use at tax time, you can be sure their |
| to show credibility in the eyes of local donors, and if | | | | next act of generosity will be toward some other |
| you hope to stay out of trouble with the IRS, | | | | organization. |
| bookkeeping is a necessity in non-profit work. | | | | Once you have the money, keep track of how you |
| Let's start with the IRS - if you have become a | | | | use those donated funds and use your |
| 501c3 corporation, your books must be open and | | | | record-keeping to help obtain future funding. |
| available. Not only must your donors be able to view | | | | Both local donors and grant-givers want to know |
| them, but the IRS could suddenly demand to do an | | | | that the money they give will be spent as intended. |
| audit. | | | | They also want to know that when you start a |
| That means you need to record where every dollar | | | | project, you know the steps you'll need to take and |
| came from and how it was spent. | | | | what each of those steps will cost. |
| True, when you have collection jars around the | | | | When you fill out a grant application, they'll ask for |
| community, you don't know who contributed. But | | | | your budget, along with a summary of how your |
| you can have a column labeled "collection jars" and | | | | project will benefit the community. Keeping careful |
| enter the date and amount every time you empty | | | | record of what you do today will help you accurately |
| them and deposit the money. | | | | predict the cost of future projects. Not only that, |
| How you must keep records and what you must | | | | most grant makers want an accounting at the end of |
| report in order to satisfy the IRS is outlined in various | | | | the project. If you can't provide it, you could be |
| government publications. Be sure you check these | | | | asked to return the money. At the very least, you |
| publications and comply with all reporting regulations. | | | | won't get further funding from that source. So even |
| Regulations are always subject to change, so stay up | | | | if it's no fun, just do it. |
| to date. | | | | As for local donors - if someone asks you what it |
| Meanwhile, you do need to send a receipt to all your | | | | costs to do some specific thing, you should be able |
| donors so that they can keep records and deduct | | | | to answer. If you can't, you'll lose credibility, and |
| their charitable contributions. Since you can send this | | | | probably lose the donation. |
| along with your thank you note, and since thank you | | | | Keeping records isn't difficult unless you let it go and |
| notes are VITAL to future fundraising success, this | | | | get behind. So make it a priority to stay up to date |
| should be easily accomplished. If an individual sends | | | | with all income and outgo. It will definitely help your |
| you $1,000 and you fail to provide a receipt that he | | | | chances of having more income. |