Tax Summaries Tool – How to Use

Tax summaries are documents sent from a nonprofit to their donors that show tax-deductible amounts for a previous year's donations. In the U.S., nonprofits are required to send those out by January 31st.

The primary goal of the Tax Summaries Tool is to send tax summaries via email, providing a way to easily accomplish that goal. 



Overview

To access the Tax Summaries Tool in Kindful, go to Tools, then Tax Summaries.

The Tax Summaries Tool examines your entire database of donors to find those that gave in the previous year. The tool then divides these donors into 3 categories: those that can be emailed, those that can only be physically mailed, and those that cannot receive mail or email.

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There are 3 category donors will be placed in based on their available contact information:

  • If a donor gave in the previous year and has an email address on file, they'll be put in the category Some donors can be emailed a tax summary.
  • If a donor gave in the previous year and has only a physical address (no email address) on file, they'll be put in the category Some donors must be mailed a tax summary.
  • If a donor gave in the previous year but has neither an email nor a physical email address on file, they'll be put in the category Some donors cannot receive a tax summary.
Note: Depending on your list of donors, you may not see 1 or 2 of these categories. For example, if all your contacts have either a physical or email address, then you won't see the category Some donors cannot receive a tax summary, since all your contacts have a way to receive that document.

Next, we'll talk about what actions to take once you're viewing these categories. 



1. Contact donors without an address or email

If you have any donors in your database that have given in the previous year, but have no email or physical address on file, the Tax Summaries Tool will identify these donors as unable to receive tax summaries.

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Beneath this category heading, you'll see a button to view the list of donors. This button will take you to the Contacts page, with filters applied to show contacts that gave in the previous year, but don't have a physical or email address in their contact info.

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Once you see this list of donors, you can decide how you'd like to reach out in order to gain either their physical or email address, enabling you to send them a tax summary. 



2. Send tax summaries to donors with an email

All donors in your Kindful account that have given in the previous year and have an email stored in their contact info will appear in this category.

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Clicking Email Tax Summaries will send an email to this entire group of donors. Included in this email will be your organization's contact info, a reminder to the donor that they gave to your nonprofit, and an attached PDF of their tax summary.



3. Send tax summaries to donors with an address (no email)

If you have donors that gave in the previous year, and have only a physical address on file, the Tax Summary Tool will help prepare a printable version of their tax summaries.

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Clicking Generate PDFs will create a PDF of tax summaries, envelopes, and labels for donors in this category.

If you'd like to view the list of these donors so you can reach out and ask for their email (instead of physically mailing them), you can select View List. You can also do this if you'd like to use a separate mailing template. After pressing View List, you can Select All from the right sidebar, then select Mail Merge on the right sidebar. You'll then be able to select the template of your choosing. 

 


Mail all donors a tax summary 

If you'd rather print off and mail ALL your donors' tax summaries (as opposed to emailing them), please read the article Year End Tax Summary Letters to learn more.



Editing the tax summary template

The Tax Summary Tool provides a very basic template from which the emails and PDFs are generated when you select Email Tax Summaries or Generate PDFs.

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If you'd like to edit that template, you can select Edit Tax Summary Template in the top right of the Tax Summary Tool.



After sending tax summaries

After you've sent tax summaries through the Tax Summaries Tool, you may still have some steps to take to stay organized.

If you sent tax summaries via email, then a line of activity is logged for those who were sent an email that says, "received an Email" with the email's title underneath. This will help you keep record of everyone who should have received their tax summary.

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If you sent tax summaries via mail, you'll need to mark those as sent. You can do this by going to Tools, then Mail Merge History. Find the Mail Merge titled "Prior Year Tax Summary #9 Envelope", scroll that section of the screen to the right, and select Confirm Letter Sent. This will log a new line of activity in Kindful for these donors that says, "received a Letter" with the letter's title underneath.

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If you'd like a walkthrough of the tool, you can follow this link to watch a recorded webinar on the tool.

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