Donor Donations & Sponsorships
Donor donations are used to record donations you receive from Donors in support of an event that are not items you will be including in the auction.
Some examples are:
- cash donations in lieu of donating items
- sponsorships of the event
- donations-in-kind, for example catering or printing services.
Entering donor donations for these will let you track what was received from the Donor, include them on the Donor's receipt and acknowledge the Donor on the web site.
Donor Donations vs Bidder Donations
When dealing with cash donations there is an overlap between recording a bidder donation or a donor donation. There is no single right answer to which way it should be recorded, although here are a couple of guidelines that may help.
In general, a donation should be considered a Donor donation if:
- it is made and paid for prior to the event and is in lieu of donating an item for auction available toward the event.
- the Donor isn't going to be a bidder participant at the event.
- you don't need to track the commitment to the donation separately from the payment.
- with a donor donation, you simply record the donation when it is actually made.
- with a bidder donation, you need to record both the donation and the payment.
- it is a donation of goods or services.
- you want to acknowledge the donation on the auction website.
A donor donation can be flagged as an in-kind donation which will prevent its value from being counted as income for the event.
The in-kind flag is never shown publicly or revealed on the donor receipt, it is purely internal.
Sponsorships are considered a special kind of donor donation and you can flag an entry as a sponsorship by checking the Sponsorship option when adding it.
This will cause that Donor to be included in the automatic sponsors element on the website.
It is common to want to sell sponsorships online alongside event tickets.
In order to do this you need to set up sponsorships as For Sale items and when someone buys one online they will be tracked as a bidder and the item shows up on their bidder statement.
If you also want the donor acknowledged as a Donor/Sponsor on the web site then you would need to manually record a donor donation for them and check the sponsorship and in-kind options. By checking the in-kind option for these you prevent the system double counting the income since the amount is already tracked as a bidder purchase.
We hope to add a future enhancement to automate this better.