Setting Tax Deductible Amounts

Overview

Setting a Tax Deductible Amount on a donation can be done in a few places. It can be done manually or automatically. Read the article below to learn more about setting these values and tracking deducible and nondeductible donations.

Linked Articles:

- Manage, Create, or Edit a Campaign

- Editing a Transaction

- Bulk Edit Activities

- Create Custom Reports

- How to Send Tax Summaries Using Kindful's Built-in Tool


Set it Automatically

It is easy to set a Tax Deductible Amount on your incoming transactions on a Campaign level in Kindful. When you set it here, all gifts that are attributed to that particular Campaign will follow the same setting for all transactions assigned to it. This is a valuable time saver, especially if all of the incoming gifts to this Campaign should follow the same rule or pattern as it pertains to this setting.

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Notice you will set the Amount (for each transaction) that is Not Tax Deductible here. You will set it this way because it can apply broadly to all transactions made towards this Campaign.

If you enter 20 here, because all donations to this Campaign receive a T Shirt and a Mug (valued at $20), that means that a $100 contribution will have a Tax Deductible Amount of $80. 

You can set this amount as high as 1000000 to have it so that any gift to this Campaign is not tax deductible.


Set it Manually (Individual Transaction)

Every transaction that is entered into Kindful can be manually updated by an Admin User. Even if the Campaign has a default Non-Tax Deductible Amount set on it, you can still edit and update/override that setting. This can be helpful if you have gifts entered into Kindful and you forgot to set the amount prior to entry.

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Of Note: The field is identified as "Tax Deductible Amount" in the transaction details, but when you edit it, you are editing the "Non-Tax Deductible Amount".


Set it Manually (Bulk Transaction)

Another option is to set these manually, but in bulk. This is helpful if you have entered in a batch of transactions and realize you did not set the amount on the campaign, and now need to update all of those that were previously entered. Use the Bulk Edit option to do so.

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Receipt It

When creating thank you letters (Acknowledgement template type) and thank you emails (Transaction and Non Cash Gift Receipt template type), there are two tags that can be used to reference amounts pertaining to tax deductibility.

Non-Tax Deductible Amount - The amount of the contribution that is not tax deductible. This is used best to show the value of what was received, for example.

Tax Deductible Amount - The amount of the contribution that is tax deductible, and able to be written off by the donor.

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These amounts will be per transaction, and not the full year amount. To reference the donor's full year tax deductible giving, please use our Tax Summary Tool.


Report On It
You can filter for these transactions on the Activities page using the filter "Tax Deductible: Yes".
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When creating a report that includes Transactions (from the Activities page), you have the option to pull out information regarding that tax deductible amount value. These values include "Amount", "Tax Deductible Amount", and "Non-Tax Deductible Description".
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Still have questions?

Feel free to send our support team an email, or you can call the phone number found in the lower left hand corner of your Kindful Admin account to speak to a team member. 

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