Skip to main content

Mark GAU as Tax Deductible

Quick Start

📄 Setting up donation receipts? Mark GAUs as tax deductible to ensure proper donation receipt generation and tax compliance.

  1. Open GAU record → 2. Edit Tax Deductible field → 3. Check the box → 4. Save

What you'll accomplish: Configure tax deductibility settings for General Accounting Units to ensure donations are properly categorized for tax receipt generation and compliance reporting in about 3 minutes.

🚀 Quickstart​

  1. Navigate to the Financials app and select target GAU
  2. Edit the Tax Deductible field on the GAU record
  3. Check the Tax Deductible checkbox
  4. Save the updated GAU configuration

⚠️ Before You Start​

📋 Prerequisites Checklist
  • You have appropriate administrative permissions
  • Access to GAU records and edit capabilities
  • Understanding of your organization's tax-deductible fund policies
  • Knowledge of which GAUs should be tax deductible
  • Consultation with finance/tax team if needed

💡 Understanding Tax Deductible GAUs​

What Tax Deductible Means:

  • Donations qualify for tax deduction by donor
  • Receipts generated for tax-deductible contributions
  • Compliance tracking for charitable contribution reporting
  • Proper categorization for financial and tax reporting

When to Mark GAUs as Tax Deductible:

  • Charitable contributions to general operating funds
  • Designated donations for specific charitable purposes
  • Memorial/tribute gifts for charitable activities
  • Building funds for charitable facility improvements

When NOT to Mark as Tax Deductible:

  • Membership dues (typically not tax deductible)
  • Event tickets or goods/services received
  • Tuition payments for educational services
  • Fees for programs where services are received
Legal Disclaimer

Tax deductibility determination should always be made in consultation with qualified tax professionals. This setting affects official donation receipts and tax reporting.

📘 Detailed Instructions​

Step 1: Access GAU Record​

  1. Navigate to the Financials app from App Launcher
  2. Go to the General Accounting Units tab
  3. Search for and select the GAU you need to configure
  4. Open the GAU record

Step 2: Locate Tax Deductible Field​

  1. Find the Tax Deductible field on the GAU record
  2. Note current setting (checked or unchecked)
  3. Click the edit icon (pencil) next to the field
📝 Tax Deductible Field Reference
SettingImpactUse Cases
Checked ✅Donations are tax deductibleGeneral fund, memorial gifts, charitable building fund
Unchecked ❌Donations are NOT tax deductibleMembership dues, event fees, tuition payments

Important Considerations:

  • Receipt generation - Only checked GAUs generate tax receipts
  • Donor expectations - Match donor understanding of deductibility
  • Compliance requirements - Follow IRS/tax authority guidelines
  • Financial reporting - Affects charitable contribution totals

Step 3: Update Tax Deductible Status​

To Mark as Tax Deductible:

  1. Check the Tax Deductible checkbox
  2. Verify this GAU should indeed be tax deductible
  3. Confirm the change aligns with organization policy

To Mark as NOT Tax Deductible:

  1. Uncheck the Tax Deductible checkbox
  2. Ensure this accurately reflects the GAU's purpose
  3. Consider impact on existing donors and receipts

Step 4: Save Configuration​

  1. Review the Tax Deductible setting one more time
  2. Click "Save" to apply the change
  3. Confirm the setting is updated successfully

✅ How to Know It Worked​

Success Indicators:

  • ✅ Tax Deductible field shows updated setting (checked/unchecked)
  • ✅ GAU record saves without errors
  • ✅ Setting persists when record is refreshed
  • ✅ Future donations to this GAU reflect tax deductibility status

Testing the Configuration:

  • Review existing donations to this GAU for proper categorization
  • Check receipt generation for new donations (if applicable)
  • Verify reporting includes/excludes GAU appropriately
  • Test with sample transaction if needed

🆘 Troubleshooting​

❌ Tax Deductible Field Not Visible

Problem: Cannot find Tax Deductible field on GAU record

Contact your System Administrator to verify:

  • ✅ Field-level security is configured for your profile
  • ✅ Field is added to the GAU page layout
  • ✅ Page layout is assigned to correct app
  • ✅ Profile permissions include GAU field access
❌ Cannot Edit Tax Deductible Field

Problem: Field is visible but not editable

Solutions:

  • ✅ Check edit permissions for GAU object
  • ✅ Verify field permissions allow editing
  • ✅ Review validation rules that might prevent editing
  • ✅ Try edit mode (click pencil icon) for the field
❌ Changes Not Saving

Problem: Tax Deductible setting reverts after saving

Solutions:

  • ✅ Check validation rules preventing the change
  • ✅ Review workflow rules that might override settings
  • ✅ Verify permissions to save GAU records
  • ✅ Check for page layout issues causing save problems
❌ Uncertain About Tax Deductibility

Problem: Not sure if GAU should be marked as tax deductible

Solutions:

  • ✅ Consult tax professional for guidance
  • ✅ Review IRS guidelines for charitable deductions
  • ✅ Check organization policies on tax deductibility
  • ✅ Consider GAU purpose and donor expectations

💡 Best Practices​

Tax Deductibility Best Practices
  • 🏛️ Legal Compliance - Follow IRS and local tax authority guidelines
  • 📋 Document Decisions - Record rationale for tax deductibility determinations
  • 👥 Team Consultation - Involve finance and tax teams in decisions
  • 🔍 Regular Review - Audit GAU tax settings annually
  • 📞 Clear Communication - Inform donors about tax deductibility status
  • 📊 Consistent Application - Apply similar standards across similar GAUs

Decision Framework:

  • Purpose-based - Consider the charitable purpose of the GAU
  • Service exchange - Evaluate if donor receives goods/services
  • Legal requirements - Follow applicable tax law requirements
  • Organization mission - Align with charitable mission and activities

Common Tax Deductible GAUs:

  • General operating fund - Unrestricted charitable support
  • Scholarship funds - Educational assistance programs
  • Building/capital funds - Facility improvements for charitable use
  • Memorial funds - Charitable giving in memory of individuals
  • Mission-specific funds - Designated charitable activities

Common NON-Tax Deductible GAUs:

  • Membership dues - Payment for membership benefits
  • Event tickets - Payment for events with fair market value
  • Tuition/fees - Payment for educational services
  • Merchandise - Purchase of goods at fair market value

🔗 Related Actions​