Tax Prep is a Piece of Cake with Qgiv’s Donor Summaries

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As December 31st nears, your tax-savvy donors are likely getting their last-minute gifts in before the calendar year officially ends. After the ball drops and ushers in the new year, help your donors with their tax prep by sending them a summary of the gifts they’ve made over the course of 2019.

Qgiv makes it simple to produce a summary of donors’ gifts to make donor tax prep simple. Not all donors need their gift summary when filing taxes (especially if they don’t itemize), but your donors will appreciate the gesture of sending them their donation summary in case they need it.

Here are a few reasons to send donor summaries to your supporters!

Donation receipts get lost

An accurate record of their donations is essential for itemizers. These donors must be able to provide evidence for every tax-deductible gift they’ve made throughout the course of the year. The trouble with asking donors to hold onto their donation receipts is they get lost. Unless filed away in a folder in their email or filed with their tax documentation when their receipt comes by mail, chances are many donors won’t know where their receipts are by tax season.

This often leads donors to call asking for reprints of receipts or leaving reportable donations off the record. Sending donor summaries makes it possible for donors to provide evidence of their annual giving with one document rather than a pile of gift receipts.

Reporting recurring gifts is simpler

Dachshund dog prepares his tax return.

Accurately filing your taxes is confusing enough without the tedium of submitting a gift receipt for each installment of your recurring gift. Instead, Qgiv donor summaries will provide an annual giving total so donors know the sum of their recurring gifts plus any additional one-time gifts made over the course of the year.

If donors are completing an itemized tax return on their own, this is a much more convenient way for them to report the total of their annual contributions. Instead of having to add up the total of their gifts, they can see the total instantly. An official donor summary can also help professional tax preparers prepare your donors’ tax return on their behalf.

Make small businesses applaud your efforts

Large corporations that make donations likely have their own efficient system of tracking their giving. However, small businesses that donate in-kind gifts or make donations to your nonprofit still must file their corporate taxes. Their deadlines may not be the same, but that doesn’t mean they wouldn’t benefit from a summary of the gifts they made to your nonprofit throughout the course of the year.

Go the extra mile and send a donor summary that coincides with the fiscal years of these small businesses. Unlike individuals, businesses don’t report their income based on the calendar year. Their fiscal year’s start and end dates could be in any month. With Qgiv donor summaries you’re able to send a donor summary of corporate gifts by specifying their fiscal year as the gift range.

Donor summaries are useful for more than tax returns

With the 2017 Tax Cuts and Jobs Act raising the standard deduction, there are going to be fewer individuals and families submitting itemized returns. However, donor summaries can still be valuable. By sending a donor summary to your donors, you’re helping them see the total of their gifts and encouraging them to make more of a difference in years to come. Try sending a thank-you letter with your donor summaries that explains what donations made possible that year. Helping your donors visualize the part their gifts played in the work your organization did that year can be a big motivator to continue giving next year.

Conclusion

You'll be celebrated for helping donors complete their tax return like the pros.

Unless you’re expecting a huge refund, tax time isn’t likely to be your favorite day of the year. Empathize with your donors’ tax prep experience and make their lives easier. Anticipate their needs by sending donor summaries through Qgiv. By giving donors a summary of their annual gifts, you make their tax reporting a breeze and make them feel like tax pros. That’s something to celebrate!

Donor summaries are available as part of Qgiv’s Data Package. Not sure how to send out a donor summary with Qgiv? We’re happy to help. Contact us at support@qgiv.com and we’ll walk you through it!

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