Can someone help me with an accounting issue?

[RSherman]

How should a tax exempt organization handle anonymous donations?

Background:

I belong to a tax exempt organization through church (but separate) called Ladies Aid. We fundraise throughout the year then donate to local organizations such as summer backpack programs, Montgomery Co. K-9, etc. We elect officers, record meeting minutes, and read the treasurer’s report.

The problem:

At a recent meeting, the president blew up because the treasurer recorded a donation as “anonymous”. The president said she felt offended and that the officers should know the donor’s name. The treasurer stated that this is how she has recorded such donations for the past 16 years.

I don’t think emotions or past practice should dictate how we record such donations.

Questions:

Is there accepted practice as to how a tax exempt organization should record anonymous donations? Should the officers be told the name, verbally? Should the name be recorded in the meeting minutes or the treasurer’s report?

Does the amount matter? This involves a $50 donation.

Thank you in advance for any assistance.

[relayerbob]

1. Don't know the legalities...

But the so-called President is not fit to serve your organization

[RSherman]

2. Very insightful

You are spot on. I've only belonged to this group for a short time. When this issue came up I felt blindsided. It was very uncomfortable. President had a fit. The treasurer, of course, felt defensive. The president went so far as to threaten to resign. The rest of us just sat silent, dumbfounded. It feels like there is more going on that I am not privy to.

[Ocelot II]

3. The treasurer will have to send a receipt to the donor for their tax records,

so of course the treasurer will know their name, but if the donor wishes to remain anonymous that wish should be honored. AFAIK there's no legal requirement to disclose the name to anybody else (I was the treasurer for a small nonprofit and that's how we handled it - but nobody demanded to know the names of anonymous donors so it never was an issue).

[Sanity Claws]

5. For $50, no receipt required

501(c)(3) organizations are required to issue donation receipts for any contribution of $250 or more.

I work at a nonprofit and anonymous donations are accepted.
We just record how it came in so the auditor can understand.

With the small donation of $50, the donor may have wanted to remain anonymous so that you folks don't come back and ask again next year. It is very understandable.

[Ocelot II]

8. We always sent receipts anyhow, regardless of the amount, as a thank you.

If the donor sent a check, of course the treasurer would know their name.

[RSherman]

10. Thank you!

[RSherman]

6. Thank you!

[OLDMDDEM]

4. copy this into your browser for an answer

https://www.nonprofitpro.com/post/what-should-nonprofits-do-about-anonymous-and-controversial-donations/#:~:text=If%20the%20reasons%20someone%20wishes,the%20gift%20but%20celebrating%20it.

[RSherman]

7. Thank you!

Thank you! I found something similar. With this group, I feel like I need some sort of concrete "rule" to go back to them with. This article sounds like our organization would have to come to consensus as to how to handle these donations and I don't think that's going to happen. I feel like they would listen to a CPA.

[OLDMDDEM]

9. I agree with your thoughts on this. At least you have something you can now reference.

[RSherman]

11. That is true.

I will print the article and share with them.

[OLDMDDEM]

12. I wish you good luck.

[RSherman]

13. thanks for everything!

[OLDMDDEM]

14. You're welcome.