For donations over $250, the IRS requires certain information be placed in a donor acknowledgment letter. When you write their donation receipt/letter, be sure to include:
- A Tax-Exempt Status Statement — A sentence that states that your organization is a 501c3 tax-exempt organization. Include the nonprofit’s Employer Identification Number (EIN) in case the donor/IRS wants to check the organizations tax-exempt status.
Don’t know your organization’s EIN number? Click here to read our blog post on finding important filing documents, ID numbers and information for your organization. - Name of your Organization (the charity) & Name of the Donor (who gave you the monetary amount or item)
- Date of the Contribution — The date the donation was received
- Contribution details — The monetary amount that was donated to you. For a noncash donation, a description (but not the value) of the non-cash contribution. It is the responsibility of the donor, not the organization, to determine the estimated value of the non-cash donation***
- Statements of Good Faith Estimates of Value of Goods or Services Received over $75 — You will need to include a sentence that states your organization did not provide any goods or services in exchange for the contribution
- Please note, many payments to nonprofit organizations are made in conjunction with a good/service (Quid Pro Quo Contributions over $75), and therefore not entirely tax deductible. For examples, organizations such as booster clubs and sports leagues often have required “Player Participation” fees. A determination would need to be made as to the amount of these payments that is covering the service (coaching, transportation)/goods (apparel, meals) and what if any is leftover as a general donation before issuing donation letters.
- Statement of Appreciation for Donation — Donors appreciate hearing how their donation is being used, or what it is helping your organization accomplish. You can also let them know any future goals you are working towards in the future to keep them engaged in your organizations work. Personal stories and quotes from staff & volunteers also add a nice personal touch to your letter.
***If the donor believes their non-cash donation to your organization is valued at $5,000 or more, your donor will need submit IRS form 8283 with their tax return. To assist your donor, your organization should download the form, and fill out Part 4 for them. Then include the form (with part 4 completed only) in with your donation letter.
Sample Donation Acknowledgement Letter
Dear Mr. Black,
Thank you for your contribution of one used table and set of six oak chairs that our nonprofit, Meals for the Hungry, received on July 25th, 2016. No goods or services were provided in exchange for your contribution.
We are extremely appreciative of your donation- it has provided additional seating for our clients to use as they eat their home cooked meals. One of our frequent clients, Suzie Brown, stated that, “It’s as if I’m eating a hot meal in my own dining room!”
We are hoping to further improve our facilities by purchasing a new dishwasher in the near future. This will allow us to save time cleaning our dishes and spend more time serving and communicating with our clients.
Thank you again for your generous donation! Donors like you are what help us serve our clients so well.
With gratitude,
Jenny Blue, President
Meals for the Hungry
3409 Cerritos Avenue
Los Alamitos, CA 90720
Meals for the Hungry is a tax-exempt 501c3 organization, EIN# 80-1234567