Donation processing refers to the systematic handling of contributions made to organizations, often non-profits. This process includes receiving donations, verifying their authenticity, and recording them in a database. It ensures that all contributions are tracked accurately for financial reporting and donor recognition. Once donations are processed, organizations may issue receipts to donors for tax purposes. Additionally, donation processing often involves acknowledging the contributions through thank-you letters or updates on how the funds will be used. This helps maintain a positive relationship between the organization and its supporters, encouraging future donations.