Ammado: Donation Receipt Management

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1 Ammado: Donation Receipt Management Thank you for your interest in ammado s donation receipts. ammado provides two options for donation receipts for your nonprofit organization: 1. By default, when a donor completes a donation receipt form on ammado, the donation receipt request is sent via to a nonprofit 2. Upon request, ammado can issue receipts to donors on behalf of a nonprofit Issuing receipts is a free service provided by ammado to nonprofits that wish to outsource this function or simply wish to avoid the administrative burden of managing and issuing donation receipts. If ammado is issuing a receipt on behalf of a nonprofit, the nonprofit can define up to 10,000 characters of custom text to display with the receipt as well as include branding and an official signature. You can request ammado to issue your donation receipts by logging into your ammado account and sending a request via If you have further questions about ammado receipts after reading this article, please don t hesitate to contact your business representative or [email protected]. Are ammado donation receipts accepted by tax authorities? In general, ammado donation receipts are deemed acceptable by tax authorities as proof of a donation and can be used for tax- efficient giving. The format of the donation receipt is described in the next section and shows that the receipts provide tax authorities with sufficient details about both the donor and the donation itself. However, tax systems vary worldwide so we strongly advise that you check with your local tax authorities regarding what is required for donors to claim tax back and match these requirements with ammado s receipt format. It should also be noted that donation receipts can generally only allow for tax- efficient giving when both the donor and the beneficiary nonprofit are in the same tax jurisdiction. This applies equally for ammado donation receipts. If the ammado receipt format does not meet the requirements of the tax authorities in your country, you should retain ammado s default option of receiving receipt requests from donors thus allowing you to issue donation receipts from your organization directly to the donor. Are there cases when ammado cannot issue or send a donation receipt? There are broadly two cases when ammado cannot issue or send a donor a donation receipt. 1 P age

2 1. We do not have an address for the nonprofit ammado provide a donations facility to over 1.6 million nonprofits worldwide many of these are accredited nonprofits from the US that are registered as 501(c)(3) compliant on the IRS records. A percentage of 501(c)(3) nonprofits although available for donations through ammado are not actively managing an ammado account and therefore we do not have a valid address in our records for them. In these cases, therefore, we cannot issue a donation receipt on behalf of the nonprofit nor can we send a donation receipt request to them via . A donor in this scenario seeking a donation receipt will instead see a message on ammado.com stating we cannot provide the receipt for these nonprofits. 2. If the donor uses a donation gift card issued by ammado In most cases, a receipt is not available for donors when they use a donation gift card in the donation. There are exceptions to this rule for example, where the gift cards have been purchased as part of a loyalty scheme, but these cases are rare. When is a donation receipt issued or a donation receipt request sent? Upon successful completion of a donation either a once- off donation or a repeat donation a donor is offered access to the donation tax receipt form 1. A donation is considered to be successfully completed when it is authorized by ammado s payment service provider WorldPay i.e. the transaction is considered initially valid. In the case of a once- off donation, the tax receipt option is offered as a link to the donor alongside a success message immediately after the donation. 1 If the donation is made using an ammado donation gift card, generally a receipt is not offered because the donor has not actually paid for the donation. 2 P age

3 If the donor does not avail of the receipt option immediately after the donation, they can access the receipt option at a later time by clicking a link in the donation confirmation . ammado sends this on successful completion of all donations (both once- off and repeat donations). If the donor clicks the receipt link on the success panel OR the in the confirmation, it will bring them to a page on ammado.com where they can complete the donation tax receipt form. The form will detail which nonprofit the receipt is being issued for and ask the donor to provide or confirm their name, address, country, , and additional information required for tax receipts (e.g. donor s tax number). When the donor completes the donation receipt request form, a success message displays stating that the receipt will either be issued shortly by ammado OR that the receipt request will shortly be sent to the nonprofit. Essentially the donor s receipt is placed in a queue until the payment for the donation is processed successfully. The period between a donation being authorized and being captured is called the capture delay, and is generally less than two working days but can take up to seven days. Once the payment for the donation is successfully processed, the receipt request moves from the queue and generates the ammado- issued receipt OR ammado sends the receipt request via to the nonprofit. If ammado issues the receipt, the donor will receive an HTML containing the tax receipt; the donor can also access this HTML receipt online on ammado.com and print it from their donation details page (where the receipt request form was originally completed). This receipt process is repeated for ammado s internal payment methods as well for example, if the donor uses ammado s Payroll Giving as a payment method. Note: ammado delays issuing receipts or sending receipt requests to nonprofits because donations can sometimes fail even after being initially authorized. Queuing receipts until the payment is captured therefore helps to prevent invalid donations from obtaining receipts. 3 P age

4 What information is requested from a donor for a donation receipt? For most payment methods, ammado offers donors a tax receipt either through the ammado giving widget, made automatically through a repeat donation or submitted through ammado s API ( When a donor accesses the receipt option, the below form displays this form requests the information about the donor that is required for the receipt. The form can vary slightly when translated but the requested information remains largely the same. Receipt Request Form (English & French) English Version French Version 4 P age

5 Receipt Request Form (Spanish & German) Spanish Version German Version 5 P age

6 What is the format of the ammado donation receipt? As mentioned, donation receipts can be either issued directly by ammado (if authorized to do so by the nonprofit) or sent as a receipt request to the nonprofit (so that the nonprofit can issue its own receipt based on the donation information that ammado supplies). Regardless of whether the receipt is sent as a request to the nonprofit or issued directly by ammado, all donations contain similar information required in a donation receipt such as information relating to the donation itself (currency, amount and so forth) and information relating to the donor (obtained from completing the receipt request form). Also included is a unique reference code the Order ID that can be verified by ammado as evidence of the donation. Example of a receipt request sent to a nonprofit 6 P age

7 The ammado- issued receipt consists broadly of the same information relating to the donation and the donor. However, it further includes information relating to the nonprofit including custom text provided by the nonprofit and a signature if the nonprofit wishes. Alternative custom text can also be provided per campaign should the nonprofit wish this. Example of a receipt issued by ammado 7 P age

8 What information is contained in an ammado receipt? ammado receipts are generated using the information from the donation itself, information about the nonprofit and donor information. The donation and donor information is also always available for viewing by nonprofits in their donation statement export. The receipt importantly states that no goods or services were provided for the donation and provides a support address if the donor has any queries. Here is the important receipt information captured in the receipt and available for viewing in the nonprofit online donation statement on ammado.com: Date The date the donation was made. Ref The unique reference number of each donation - this is provided by ammado. Title The "Title" column displays the donor's title - for example, "Mr.", "Mrs.". First Name The donor's first name. Last Name The donor's last name. Address The donor's address. Donation Currency & Amount The currency in which the donation is made and the amount of the donation enclosed in asterisks. The currency can be in any of over 75 currencies supported on ammado. It displays as a three- character code defined by the International Standards Organization (ISO) - for example, the Euro currency will display as "EUR". Street Address The first line of the address provided by the donor. Address 2 The second line of the address provided by the donor. City/Town The city or town provided by the donor. State/Province The state or province of the donor. This is for donors from the United States. ZIP/Postal Code The ZIP code (United States) or postal code of the donor. Country The country of the donor. Telephone 8 P age

9 The telephone number of the donor. Tax Number The tax number of the donor - for example, a social security number or personal identity number that is accepted by the donor's tax authority. As a nonprofit, where do I see receipt information? Receipt information is available for viewing when a receipt is requested by a donor. We will send an to nonprofits when such a request is made (as shown in the previous section). If ammado are issuing the receipt on behalf of the nonprofit, we also send an to the nonprofit to inform them of each instance as per the following example: Example of an notification sent to a nonprofit when ammado issues a receipt 9 P age

10 The receipt information is also captured in the nonprofit donation statement. To access this information, you will need to log in to your ammado account and access the donation statement. On the statement, click the Download button. A CSV (comma separated values) file will open generally in a spreadsheet application such as Excel where all the receipt information is displayed. As a donor, how do I know that my donation receipt has been sent to the nonprofit or issued by ammado? When a donor completes and submits a donation receipt request form, a Success message displays stating that the receipt will be sent or issued shortly (depending on whether ammado issues the receipt on behalf of the nonprofit, or if we are sending the receipt request to the nonprofit). When the donation is processed successfully, the nonprofit will then be sent the receipt request in an as indicated if ammado are simply forwarding the requests. If ammado is issuing the receipt on behalf of the nonprofits, the Success message that displays states that ammado will issue the receipt to the donor s address on behalf of the nonprofit(s) shortly. When the donation is processed successfully, ammado issues the receipt by to the donor's address. A "View/Print Receipt" button also now displays on the Donation Details page for this donor to view or print the receipt. Do donation receipts include any fees? Donation receipts issued by ammado are always for the full amount of the donation and do not reference or include deductions for credit card fees, payment processor charges or ammado fees (these fees on average equate to a total of 7.5% of a donation). ammado charges a 5% fee for all donations, which includes the payment processor fee, and an additional charge of approximately 2.5% is charged per donation by credit card companies. These fees as stated are NOT included in the donation receipts that ammado issues to donors i.e. if a donor donates EUR 100 to a nonprofit and requests a receipt, ammado will issue a receipt for the full monetary value of that donation: EUR 100. The costs are, however, fully transparent to a nonprofit in the export of the donations statement. If the receipt must include the fees and net 10 P age

11 value of the donation, we recommend that the nonprofit retain the default option of receiving donation receipt requests from ammado and issuing the receipts themselves including the fee information from the export file. Are donation receipts available when a donor redeems an ammado donation gift card? In general, donation receipts are not available when a donor uses an ammado donation gift card. This is because ammado donation gift cards are generally purchased and sent as a gift or reward to friends, colleagues and supporters to donate to a nonprofit or a fundraiser. In these scenarios, the receiver has not used their own money in the donation and is therefore not entitled to a tax deduction. The donor will of course still receive a donation confirmation as proof of their donation. There are very rare circumstances where ammado will issue a receipt for donations using gift cards. For example, ammado has agreements with certain companies whereby loyalty points can be exchanged for gift cards. In these circumstances and subject to prior agreement ammado can configure gift cards to offer a donation receipt. Conclusion ammado provides a free service to issue donation receipts on behalf of nonprofits on our system this service reduces the burden on nonprofits, fits seamlessly into our donation experience and does not incur any additional cost to a nonprofit. Please note that nonprofit signup, profiles and functionality on ammado.com are all free for nonprofits and there are no subscription fees. If your nonprofit organization wishes ammado to issue donation receipts on their behalf, please contact [email protected] directly to switch on this feature. 11 P age