Aplos Accounting makes it easier for nonprofits to manage donor contributions. Aplos Software, LLC recently updated their nonprofit accounting software with a new donor contribution management features. This updates lets nonprofits and churches designate an individual with access to the contribution management sections of the accounting software so they can enter donations, update donor contact information, and print the required annual contribution statements.

IRS Requirements for Donor Contribution Statements

IRS regulations require that before a donor may claim a tax deduction for a charitable contribution the donor must have a bank record or a written communication from the charitable nonprofit to substantiate the charitable donation. In fact, the donor is responsible for obtaining the written gift acknowledgment for any single contribution of $250 or more according to IRS regulations. For more detailed information about these requirements, see IRS Publication 1771.

Practical Consideration: Use Contribution Statements to Meet Donor Expectations

Although IRS regulations require the donor to receive a donor acknowledgement only in certain instances, many donors expect to receive a donor statement or "thank you" letter regardless of their contribution amount. In fact, the fundraising experts cited by the CouncilofNonprofits.org recommend that donor contribution statements be sent to acknowledge all donors for this reason in the article "Acknowledging Gifts and Contributions".

In the article "Should a Donation Thank You-Letter Ever Ask for a Donation?", Alan Sharpe at ExpertFundraiser.org recommends that a thank you letter be included in each of these acknowledgements in a direct mail campaign for additional donations.

IRS Deadline for Mailing Contribution Statements

"Mailing giving statements on time can be stressful for small nonprofits and churches, especially if they are not using an appropriate fund accounting software throughout the year. Aplos helps nonprofits change this time-intensive project into one that is as simple as the click of a button," said Tim Goetz, CPA and co-founder of Aplos Software. Tim notes that "[e]ven if organizations have not been using Aplos Accounting all year, we will help them import their data so they can easily prepare 2012 giving statements, then they will already be set up to start 2013 accounting on the right foot." The IRS regulations require that contribution statements are mailed by January 31 for the prior tax year.