Can someone help me with an accounting issue?
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.
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