At the end of the year, all nonprofits prepare what is called the receipt and payment account. The receipt and payment account shows how much money the nonprofit has on hand, what they spent money on in the past year, and how much money they took in. Usually it is a detailed look at all the donations that they took in for the year. It is very important that nonprofits keep a record of the donations that they take in and from whom. In most cases, the money that is taken in by a nonprofit was donated to them in order for that person to get a tax deduction.