06/11/2024

Not-for-profits and Gift Card Donations

Understanding the bookkeeping best practices

Gift card donations can be a valuable source of support for not-for-profit organizations, providing flexibility and resources to further their missions. Managing these contributions effectively, however, requires careful consideration and adherence to proper bookkeeping practices.

Understanding the Nature of Gift Card Donations

Gift cards are treated similarly to cash donations, allowing NFPs the freedom to use them for various purposes aligned with their mission. Whether received from individuals, businesses or other entities, gift cards represent a valuable form of support. NFPs must establish clear policies and procedures for handling these contributions; however, to ensure transparency, accountability and compliance with legal requirements.

Key Considerations and Best Practices

Gift Card Recordkeeping

Just like with cash donations, it’s crucial for NFPs to maintain a log of all gift card donations. This log should include details such as the donor’s information, the amount or value of the gift card, any restrictions on its use specified by the donor and the intended purpose if applicable.

Please select this link to read the complete article from OSAP Mission Partner Clark Schaefer Hackett.