donation acknowledgement letter template

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According to IRS Publication 1771, Charitable Contributions - Substantiation and Disclosure Requirements, donors must have a contemporaneous written acknowledgement from the recipient not-for-profit entity (NFP) in order to claim a tax deduction for each charitable contribution that exceeds $250. Generally the burden for obtaining substantiation is on the donor, as NFPs are not required to provide written acknowledgements for contributions received, except in the case of quid pro quo contributions of more than $75. However, organizations can express their appreciation by providing timely written communications that will substantiate their donors’ tax deduction claims.

The IRS states that written acknowledgements of charitable contributions should include the following:

Both hard-copy and electronic formats are acceptable as long as the donor receives the acknowledgement by the time they file their return or the time their return is due, whichever occurs first. However, acknowledgements are not submitted with donors’ tax returns; they should simply be retained to substantiate contributions.

Note: Contributions are not aggregated. Thus, multiple contributions of less than $250 individually made throughout the year to the same NFP that, in total, exceed $250 would not require substantiation.

Having a customizable template for donor acknowledgements helps NFPs thank donors in a timely manner, boosting donor relations. The acknowledgement process also promotes accurate recordkeeping for contributions, which is essential for NFP financial reporting and compliance. A good internal practice is to have both finance and fund development staff review the template to ensure it supports IRS compliance, but also supports the organizational tone of donor communications.

Below are four sample contribution acknowledgements you can adapt for your organization’s use in helping donors substantiate claims for their tax-deductible contributions.

Thank you for your contribution of [property, used equipment, publicly traded securities and/or virtual currencies], which is described below, to Save Our Charities (SOC) in support of our mission to provide advisory and training services that help charitable organizations be more effective. On January 24, 20XX, we received your contribution of:

SOC is recognized as a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code. Contributions to organizations with 501(c)(3) status may be tax deductible. Please consult your tax advisor to determine deductibility of this contribution. This letter is your receipt for income tax purposes.

Thank you for your donation of [describe donated services or use of facilities] on January 24, 20XX [or during the period of January 1, 20XX through June 30, 20XX] to Save Our Charities (SOC) in support of our mission to provide advisory and training services that help charitable organizations be more effective.

SOC is recognized as a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code. Contributions to organizations with 501(c)(3) status may be tax deductible. There are specific rules affecting the deductibility of donated services (or donated use of facilities), and we recommend that you consult your tax advisor to determine deductibility of this contribution, including any related out of pocket expenses. This letter is your receipt for income tax purposes.

Thank you for your charitable gift in the amount of $XXX,XXX from your Individual Retirement Account (IRA) on January 24, 20XX in support of our mission to provide advisory and training services that help charitable organizations be more effective. This acknowledges that we received your gift directly from your plan trustee/administrator and that it is your intention for all or a portion of your gift to qualify as a qualified charitable distribution from your IRA under section 408(d)(8) of the Internal Revenue Code.

SOC is recognized as a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code. Your gift was not transferred to either a donor advised fund or a supporting organization as described in section 509(a)(3).

Even when written acknowledgements are not required by the IRS, it is still a good practice for NFPs to thank donors for gifts of any amount. This best practice improves recordkeeping and donor relations.

Nonprofit work is a two-way street. You rely on your donors, supporters, and volunteers to reinforce the valuable work you do, and they rely on your knowledge and skillset to make the world a better place. Maintaining this relationship between donors and nonprofits is essential, and one way to make sure your donors feel valued is through donation acknowledgment letters.

Below, we suggest some best practices for writing your donation acknowledgment letters and provide you with samples so you can be confident your donors feel appreciated. Remember to pay attention to the items for donors who have given a gift of $250 or more.

There is no rule on how to format your charitable contribution acknowledgment letters. However, the most common types are emails, letters, and postcards. Some nonprofits use the same format for all acknowledgments; others distinguish certain formats for specific donation types or amounts.

For example, if a donor gives a particularly large gift, you may want to have a senior member of your organization send that donor a handwritten acknowledgment so you can go the extra mile to show how much that donation meant to the organization. Alternatively, if a donor signs up for a regular recurring donation, we recommend using a template that tells the ongoing story of your nonprofit so the donor feels connected to your work and continues to partner with you.

Below, we’ve included some tips on how to automate this process using your nonprofit CRM. This will allow you to put similar donors into acknowledgment lists and send automated responses based on particular actions. This speeds up the acknowledgment letter process and ensures you never miss a chance to connect with your donors.

Another important reason to automate these acknowledgements is that you don’t want to leave your donors wondering if you received the donation. Send them as soon as possible—ideally within 24 hours of a donation being made.

Thank you for your generous donation to the Sea Turtle Project! Donors like you are vital to the continued success of our mission to protect sea turtles from extinction, and we are grateful for your support.

Thank you again for your dedication to conserving the sea turtles’ natural habitat and for helping us prevent the danger of their extinction. We’re excited to continue partnering with you to save the turtles!

It’s important that your donation acknowledgment preheader briefly alludes to what the message is about. Especially if you’re sending an email acknowledgment, make sure the subject contains words like “Thank you for your donation” or “Donation acknowledgment.” This grabs your donor’s attention and ensures they don’t accidentally overlook your acknowledgment.

Dear Jemar,Thank you for your generous donation to the Sea Turtle Project! Donors like you are vital to the continued success of our mission to protect sea turtles from extinction, and we are grateful for your support.

On January 15, 2021, you made a contribution of $275.00 to the Sea Turtle Project. Your gift was processed as a credit card transaction and made in support of our mission.As a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code (EIN #111-111-1111), every donation makes an impact, and we are so thankful for your support.

On January 15, 2021, you made a contribution of a 2020 Mongoose electric scooter to the Sea Turtle Project. Your gift was received as an in-kind donation and in support of our mission.As a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code (EIN #111-111-1111), every donation makes an impact, and we are so thankful for your support.

If goods or services were processed in exchange for the charitable contribution, make sure you note these with the fair-market value. According to the IRS, goods or services include both tangible and intangible gifts like “cash, property, services, benefits, or privileges.” There are some exceptions, such as insubstantial gifts like t-shirts or stickers. By including this information, you’re providing the donor with the exact donation amount exceeding the contributed goods or services for their tax records.

In exchange for this contribution, you received a “thank you” basket valued at $50.00. Your gift is tax-deductible to the extent that this exceeds the value of the “thank you” basket. Please retain this letter for your tax records.

Now that your donor has all the information they need, use your closing to thank them again, update them on your organization’s progress, or introduce more opportunities to give. This should act as a friendly sign-off and make your donors feel like part of your team and shareholders in your mission. This will be your donor’s last impression of your nonprofit until further communication. Make sure to end with a touch of empathy so they know you care about their continued support.

Thank you again for your dedication to conserving the sea turtles’ natural habitat and for helping us prevent the danger of their extinction. We’re excited to continue partnering with you to save the turtles!Sincerely,

Your Friends at the Sea Turtle Project

After you’ve done the work to write an acknowledgment letter that fulfills IRS requirements and makes your donors feel valued, let Kindful make sure you never miss a chance to thank your donors. Using your nonprofit CRM to automate your acknowledgments means your nonprofit can connect with your donors and continue pursuing your mission simultaneously.

Additionally, Kindful allows you to customize your donation acknowledgment and automatically populates your contact information where you specify. This speeds up the donation acknowledgment process and ensures every acknowledgment has that personal touch.

Schedule a live demo with our team, and we’ll show you how easy it is to create and automate reports, utilize online and offline fundraising tools, quickly integrate and access all your data, and ultimately create more time to engage your donors.

While we recommend sending donation acknowledgment letters to all of your donors, you are legally obligated to send documentation to donors who have given a gift of $250 or more. The IRS requires nonprofit organizations to provide a formal acknowledgment letter to these donors for tax purposes.

You should also be able to segment your donors into different lists based on different actions the donor has taken. For example, you could set up an automatic report that pulls a list of donors who have given more than $250 to your nonprofit. You could then pass that list along to a board member to make personal phone calls to acknowledge the donors’ gifts.

According to the IRS, you can choose to send an acknowledgment letter for every contribution or you can send one acknowledgement for all of the donor’s contributions in one year. It’s up to you which method you choose.

We recommend sending a year-end acknowledgement letter to your donors even if you sent separate ones for each of their donations. Why? It’s the time your donors will be collecting the documents they need to file their taxes. If they made 3 or 4 contributions throughout the year, they may have a hard time shuffling through their old mail and email to find them. That means they may reach out to you and request a complete summary of their charitable contributions for the year.

It will save time for both you and your donor to go ahead and plan to send out a year-end acknowledgment letter or tax summary letter to all your donors. It’s even better if your nonprofit CRM allows your donors to do this on-demand. For example, with Kindful’s donor accounts, donors can download a PDF copy of contributions from the year in one click.

Most of your donors will file their taxes before the deadline, some as early as February. That’s why most organizations are proactive and send their acknowledgments before January 31. You don’t want an inbox full of requests for donor acknowledgments from February through April. Of course, if your donors have the ability to download tax summaries on demand, you’re less likely to encounter this problem.

For example, with Kindful you can automatically trigger emails or mailings to go out when a certain action occurs—like a donor making a gift. Or, if you want to send a special acknowledgment to your major givers or recurring givers, you can set a task to follow up with a call or visit.

These automated features ensure that your organization is compliant with the IRS, help establish good communication with your donors, and remind you to do the tasks that strengthen your donor relationships.

All donors deserve to be recognized, no matter the size of their gift. Use donor acknowledgment letters to show your gratitude and provide donors with important information they’ll need come tax season.

A donation acknowledgement letter is used by the receiver of the donation to assure the sender that they have already received either the amount of money given or any kind of help being extended by the person who gave the donation. There are many things that you can put in a donation acknowledgment letter, but the main point that you should not forget is to relay all the information of the donation and its specifications for a clear and transparent transaction.

We can provide you with samples of donation acknowledgement letters if you want to know more information about the content of this specific kind of letter and how it can be written properly. Moreover, we also have other Letter Template samples usable as references and guides for any written transactions that you may currently be involved in.

It is a way of showing gratitude to the donation being received. It does not need to be a long message, but a note showing thankfulness and appreciation is more than enough to make the entity who gave the donation feel the impact that they have provided for the beneficiaries of the donation.

The donation acknowledgement letter can give information about the usage of the donation. It can actually be broken down to all the activities that the donation can cover or it can be a collective description of the group of people that can benefit from the donation and the activities that will already transpire because of the donation being given.

This information is very essential to be written so that it can fully provide the different purposes of the donation acknowledgement letter stated at the earlier part of this article. The person who have written the donation acknowledgement letter should assure that all the information stated are accurate so that no misunderstandings may occur.

The new tax law, beginning in 2018, made it much more difficult for people to deduct charitable donations to their favorite charities. The law increased the standard deduction, ensuring that fewer Americans will be itemizing deductions. However, It also increased the percentage of income that people who did itemize could give to charity from 50% to 60%.1

Charitable organizations (501c3) should continue to provide written acknowledgment of donations of $250 or more. Donors who plan to deduct charitable contributions need to retain these letters in their tax records.3

Also, most charities send a summary of a donor’s contributions for the previous year by the end of January. In an age of multi-channel fundraising appeals and donations, sending that end-of-year summary by mail (no matter whether the original donation/s came by physical check or online), assures that your organization has adequately notified the donor.

Can you send that final summary of a donor's contributions for the prior year by email? Yes. There is no legal prescription for the form any acknowledgment letter must take. For instance, it could be a postcard, an email, or a physical letter.5

A statement that goods or services, if any, that the organization provided in return for the contribution consisted entirely of intangible benefits if applicable. An example might be a small gift valued less than $75, such as a mug or tote bag with the organization’s logo.7

"A donor cannot claim a tax deduction for any single contribution of $250 or more unless the donor obtains a contemporaneous, written acknowledgment of the contribution from the recipient organization. An organization that does not acknowledge a contribution incurs no penalty; but, without a written acknowledgment, the donor cannot claim the tax deduction. Although it’s a donor’s responsibility to obtain a written acknowledgment, an organization can assist a donor by providing a timely, written statement ...."8

Although acknowledgment language should be suited to each charity, here are two examples of statements that meet all the requirements. The first came at the end of a written letter sent by mail; the second was part of an email thank you.

1. "As a 501c3 charity, tax laws require us to notify you that this letter is the official acknowledgment of your gift. Also, we are required to certify that you received no goods or services in consideration of this contribution; therefore, the full amount of your gift is tax-deductible. Thank you!"

2. "Partners In Health, a 501 (c)(3) not for profit organization, has not provided any goods or services, in whole or in part, to you in consideration for this voluntary cash contribution. If you wish to claim the tax deductibility of this gift in the U.S., please retain this acknowledgment letter for your files. Partners In Health's EIN number is xxxxx."

“Thank you for your contribution of one used refrigerator and one used stove that [name of nonprofit], a 501(c)(3) not for profit organization, received on [Date]. No goods or services were provided in exchange for your contribution.”

If you receive a benefit in exchange for the contribution such as merchandise, goods or services, including admission to a charity ball, banquet, theatrical performance, or sporting event, you can only deduct the amount that exceeds the fair market value of the benefit received or expected to be received.

For any contribution of $250 or more (including contributions of cash or property), you must obtain and keep in your records a contemporaneous written acknowledgment from the qualified organization indicating the amount of the cash and a description of any property contributed. The acknowledgment must say whether the organization provided any goods or services in exchange for the gift and, if so, must provide a description and a good faith estimate of the value of those goods or services. One document from the qualified organization may satisfy both the written communication requirement for monetary gifts and the contemporaneous written acknowledgment requirement for all contributions of $250 or more.

If donors don’t receive a “thank you” following their donation or receive it only 10 days later, they might feel unappreciated or get an impression that your organization isn’t professional. As a result, they might choose to donate their money elsewhere.

Your donors don’t want to feel like you’re thanking them just out of courtesy or just because you have to. And they don’t want to feel like just a name or a number. When saying thank you, don’t forget about the human touch. Make your “thank you” as personal as you can, and make it authentic. Try your best not to send overly generic messages.

If you have a good nonprofit CRM, you’ll have data about every interaction you’ve had with each of your donors. Use that data to help you create a personalized “thank you” and add relevant details that will make your donors feel important.

When demonstrating impact, storytelling will be your best friend. Instead of throwing a bunch of statistics at your donors (although those matter too), tell stories that highlight the “before and after” the donation. How did the life of the beneficiary look like before your organization’s intervention and how does it look like now? What was the situation/problem before and how does it look like now?

A simple way to begin doing this is to use “you” and “your” in your communication instead of “we” or “I.” Take a sample of 10 pieces of donor communications from the last 1-3 months and count how many times you use “I” or “we” and how many times you use “you” and “your”. This will give you a good idea of where you stand. Then, try to replace as many of “I” and “we” with “you” and “your” as possible in future communications.

For example, instead of saying “Our organization saved 10 acres of land in Brazil this month”, you could say, “Your donation helped save 10 acres of land in Brazil this month.” Giving the donor credit is a powerful way to strengthen your relationship with them.

Anyone from your organization can write the note, and to go the extra mile — involve your beneficiaries! There will be nothing quite like it when your donors receive a handwritten note by someone their donation helped.

You can even organize a phone-a-thon, bringing together team members and volunteers to make phone calls and say “thank you” to your donors. You can even turn this into a regular event that you organize weekly or monthly.

Come up with a script your volunteers and team members can follow, but allow space for the calls to be spontaneous and unrehearsed. The calls shouldn’t feel like a mere formality, otherwise they will lose its power with donors.

As part of the tour, you can organize a casual lunch or coffee with the team at the office. Let the space be informal and casual. As part of the visit, you can also show your donors what happens behind the scenes of making your programs happen.

Naturally, it’s not possible to organize this for all of your donors, so you can organize it for the top tiers. As a way to involve other tiers, you could, for example, organize a virtual tour of your office.

Highlight donors on your social media pages with a "donor spotlight." Ask your donor for their permission to do so, and if they agree, ask them for a photograph and a testimonial you can use. Ask them why they decided to give to your nonprofit. In your donor highlight, share why you value the donor’s support.

Send a small gift alongside a personalized “thank you” note. It’s best that the gift is directly linked to your cause and the positive impact your work is having thanks to your donors’ support. For example, you can design a photo booklet with photographs from the field. These photo booklets can include quotes, notes, and statistics. Photo booklets are a very good end-of-year gift, although they can be sent any time of the year.

You can also send framed photographs, coffee mugs, tote bags, candles, hampers, journals, books, and more. You can also try and make the gifts relevant to your specific mission. For example, if you’re an environmental nonprofit, you could send your nonprofit supporters reusable cutlery or bamboo toothbrushes.

Pro tip: Gifts are a touchy subject in the nonprofit world because some believe them to be taking away from the money that could be spent directly on programs. If you’re sending gifts like tote bags or coffee mugs, explain to your donors that the publicity you get by them using these gifts contributes to more donations!

To really start off the relationship with your donors on the right foot, consider sending them a welcome package. Now, a physical package might not be feasible for all organizations — but every organization can make an effort to welcome their donors once they become a supporter.

You can include many different items in your welcome package. You can start with a welcome photo and photos from the field featuring your beneficiaries, as well as an impact story. If you have a larger budget or are sending this to a major donor, you might add in a small gift and send this via snail mail. If your budget is lower, you can send this via-email.

Try to personalize the welcome package as much as possible, referencing the project, program, or community that the donation is supporting. Include a simple call to action, such as inviting the donor to tell a friend about your organization.

Pro tip: Keep your donation receipts separate from your “thank you” letters and welcome packages. You can still add a “thank you” to your donation receipt, but you should also send a separate “thank you” letter or a welcome package.

With a well-organized donor database, such a process won’t be overwhelming. If you don’t have one, now is the time to start investing in a good donor management system that will enable you to communicate with your donors in a timely, authentic, and meaningful way.

Videos are “it” nowadays! They help relay the atmosphere in a way that written word or a phone call simply can’t. And you don’t need fancy equipment to create good videos. All you need is a good smartphone, some good lighting, and you’ll be good to go!

Start the video by mentioning the donor by name and mention something specific about this donor. The donor should ideally notice that you made the video just for them! These videos don’t have to be too long, two to three minutes is sufficient to relay the message.

Keep the “thank you” video short and prepare the main talking points beforehand. Be sincere and authentic -- that matters more than top notch production in these videos. It’s important they feel “human” and not overly polished.

If your major donors aren’t in the same geographic area, you can organize the discussion on Zoom. You can even open one Board meeting per year for your major donors to attend. This will give them a larger perspective on your operations and make them feel valued and appreciated.

Let your donors meet your beneficiaries. Take them to that animal shelter, that forest reserve, or that school. Let them experience first hand the problem you’re trying to solve. Discuss your successes and challenges with them. Introduce them to everyone as a friend, as a member of your team. This is how you create life-long supporters!

This can be as formal or as informal as you like, and as big or as small as you like, but organizing an event to celebrate the support of your donors can do wonders for your relationship with your donors.

For example, if you’re a theatre, you can send your donors a recording of a virtual performance done just for them. An art gallery could offer its donors early access to an exhibition. And most nonprofits can invite donors a chance to a virtual talk by an expert in a theme related to their work.

You can give more classic awards such as “Donor of the Year” or “New Donor of the Year” or think of more creative names that relate to your nonprofit’s mission. For example, if you’re a wildlife conservatory, you might name the awards “The Elephant Award” or “The Tiger Award” and then describe these awards with a sentence or two.

Saying “thank you” to your donors frequently and consistently strengthens your relationship with them and provides everyone involved the energy and the drive needed to continue working together toward your common vision.

GiveForms can help you capitalize on all that social media engagement and raise funds by letting you seamlessly accept donations online. Your supporters can donate using a credit card, PayPal, Google Pay, or bank transfers. With a focus on intuitive, human-centered design, GiveForms goal is to help you increase your online donations.

Any time your nonprofit organization receives a donation, it’s important to express your gratitude – no matter how large or small the contribution may be. But if an individual donates more than $250, the IRS also requires your organization to provide a formal acknowledgement letter that the donor can use for tax purposes. These letters should be mailed or emailed to your donors every year by January 31.

Date: The date that the gift was received by your nonprofit. Every gift should have its own letter – if the donor made two separate contributions to your nonprofit, you should send two separate letters rather than combining all gifts into a single acknowledgement letter.

Exchanges: If your organization provided any goods or services in exchange for the donation (like a t-shirt, special event ticket, or thank-you gift) you should acknowledge this in your letter, along with an estimate of the fair market value. If the donor did not receive anything in exchange for their donations, you should state that instead.

In addition to these specific items, your organization can also use the donor acknowledgement letter as an opportunity to engage your supporters and share information about your nonprofit mission, accomplishments, and goals for the future.

In exchange for this contribution, you received [GOODS OR SERVICES – WITH ESTIMATE OF FAIR MARKET VALUE]. Your contribution is tax deductible to the extent that it exceeds the value of the goods and service our organization provides in return. Please retain this letter for your tax records.

To show your donors that you appreciate their efforts, send a thank you letter immediately after receiving a donation. You can refer to sample thank you letter templates as a guide for preparing your letters.

The donation letter thank you template can be sent to those who have given monetary contributions to your organization. It should be sent immediately after you receive the donation. If you need help downloading the templates, check out helpful Adobe tips.

Another type of donation that may be given to your organization is a gift in-kind. This type of donation is where a business or individual provides an item or service to an organization. The in-kind donation template can be sent to those who have volunteered their time or donated a product to your charity.

When you send a thank you note, tailor the letter to make it personal to the donors. If you know the donor personally, include a handwritten message at the bottom of the letter for a special touch. If you receive a significantly large donation, consider making a phone call or personally inviting the individual to spend time with you or the organization. Thanking donors is a way to keep them involved with your cause and reminding them that their efforts are greatly appreciated and needed.

Thank you letters serve as a perfect opportunity to show your appreciation for those who contribute to your organization’s success. These letters also give you the opportunity to engage and retain them long-term. Writing a thank you letter seems like an easy enough feat, but how that letter would be received by your recipients is all in the details.

This article outlines nonprofit thank you letter best practices, explores why they are important for your organization’s continued success, and includes five customizable templates to help get you started.

A thank you letter is a follow-up letter sent to someone who has contributed either time or money to your nonprofit organization. This is a great way to show gratitude and serves as a touchpoint for you to encourage them to continue supporting your organization long-term.

80% of donors who only made a one-time donation expressed that they would have made a second donation if they had received follow-up communication thanking them for their contribution and outlining their donation’s impact. Considering the high cost of acquiring new donors, stewarding your existing donors with a thank-you letter is necessary for continued fundraising success.

Introductions are one of the most vital pieces of your letter as this is the first impression that your audience will have of your organization. While a two to three-line paragraph seems simple enough, the execution is what will keep your readers invested.

This is the largest portion of your thank you letter and one that is dedicated to your supporters. In your introduction, you should have already touched on the work your organization does within your community, so the body of your letter should be dedicated to your supporters and how you can deepen your relationship with them.

The body of your thank you letter emphasizes how the supporters’ time or money was used. This is a good way to build trust while also garnering an emotional connection to your organization’s mission. When outlining donors’ impact, get specific; donors want to know exactly where their time and money are going!

Instead, use this last paragraph of your thank you letter to encourage donors to get involved with your organization. Since they donated their time or money to your organization at least once, they likely already have an emotional connection to your mission. Now is the time to invite them into your community. You can invite them to join your monthly giving program or your next fundraising event.

You want to be personal with your outreach initiatives. So the more catered your messages are, the better. This is the reason that a lot of fundraisers tend to stay away from templates. But we think this is a bit of a flaw—templates help to organize your ideas in a logical flow.

When writing thank you letters, it’s important to be genuine and thoughtful. Many organizations make the mistake of sounding stiff when corresponding with their donors. While that writing style may work across your social channels or marketing assets, it’s important to remember that this is a personalized conversation with a real human!

Take the time to personalize your message as much as possible, and don’t be afraid to be down-to-earth and lighthearted. You want readers to know they are a part of your community and akin to a friend. Treat your thank you letter as you would telling a close friend that you appreciate their help.

As discussed above, refrain from asking for money in your thank you letter. Doing so takes away from the intention of the letter, which was to express gratitude. This can give the impression that you weren’t sincere in your previous messaging and that you have ulterior motives.

The main focus of a thank-you letter is to express gratitude, so naturally, it’s important to show the positive impact they have made on your organization and the community around it. This is why they donate their hard-earned money. Since nonprofit organizations are generally struggling to keep donors’ trust nowadays, promoting transparency is important every step of the way.

Now that we have covered tips and best practices, we can begin writing your thank you letter. Below you will find outlines tailored for different supporters, from donors to volunteers, each with a corresponding template. The templates are free and customizable, so you can easily create your perfect thank you letter.

This letter thanks donors for their monetary contribution to your organization. You should outline exactly how their money was spent and the impact that long-term support can have on your organization and its community.

Introduction: Start by thanking the donor for their contribution. Take this as an opportunity to be very specific about your gift. This helps to personalize the letter. If there was a specific campaign or impact area that the donor contributed to, you could mention it here.

Body Paragraph 1: Use this paragraph to discuss what this gift will do. For instance, do you have giving categories that provide a breakdown of what each amount will achieve? Is your project closer to completion because of the contribution? Do you know how many people will be positively impacted by this donation? Sharing these numbers and details fosters a connection between the donor and your work, leading to future gifts of support.

Body Paragraph 2: Here’s your chance to talk more broadly about your organization’s work and mission. This is a great place to detail how your donor’s contribution actually helps accomplish the organization’s larger mission.

Conclusion: Thank your donor one final time. There’s no such thing as ‘over-thanking’ here. Let them know that they are important to the mission, and tell them what will happen next with your relationship. Will they receive more information? Will they get progress reports? Detail those points in your conclusion.

Signature: It’s important to have a handwritten signature at the bottom of your letter, ideally by a leader within your organization. This gesture further demonstrates your gratitude and creates a human connection.

Because of your $250 donation, we will be able to bring in 50 new types of plants into our community garden. Each of these plants should be able to feed a family of four. So, your donation is actually helping to impact the lives of 200 people!

Take Michelle, a young woman who lives in Vancouver, Canada. Michelle lost her job last year and has struggled to buy food for herself and her child. Thanks to your support, she gets a bag of fresh fruits and vegetables every week. On top of that, she found a new purpose in life: gardening! Michelle is now a proud member of our gardening team and couldn’t be happier.

Thank you once again for your generous contribution. We will send you updates over the next few months so that you know exactly what is happening with your donation and the impact that we have been able to create together.

Body Paragraph 1: Tell the sponsor what impact they have made through their sponsorship. Successful sponsorship often revolves around ROI or return on investment. This can come in the form of impact, reach, and dollars raised — the list is endless. Clearly, recounting the sponsorship’s positive effects boosts trust and demonstrates what is possible with future sponsorships.

Here’s what a donor said about the event: “It is important for our family to make a difference in our local community. Your organization is making a tremendous impact on so many people while teaching us how to adopt an environmentally-friendly lifestyle. Thank you for organizing such a great event! We’ll come again.”

Volunteers donate one of their most precious assets: time. Having people contribute their time to your organization to ensure your fundraising efforts are a success is a huge contribution! This letter should serve as a thank you for their time and the impact that had on your organization. You can also outline the resources that you were able to redirect back into your funding in place of their efforts.

Body Paragraph 1: Share the impact they have had during their volunteer time. Have you been tracking metrics? Did they help you achieve a very important goal? Talk about those metrics and achievements here to tailor this message.

Signature: Typically, we recommend a founder, board member, or leader sign a thank you letter; however, in this case, it may mean more to the volunteer if the person working closest with the volunteer or the program director signed this particular letter.

Nonprofit events can be very overstimulating for some donors and supporters; they can take up a large amount of time for attendees and be a one-and-done affair. Promptly following up with attendees after an event can serve as a touchpoint and opportunity for you to remind them of the topics discussed, thank them for contributing to your event’s success and encourage them to keep supporting your mission long term.

Salutation: Events can be tricky because you might not have had the chance to meet everyone and build a personal relationship. We would still use this as an opportunity to address individuals by their first names. This makes it more personal, even if you missed that chance at the event.

Focus your messaging on donors’ impact. Talk about what has happened within your organization since they donated. You will garner donors’ continued support if they feel connected to your cause and know exactly where their hard-earned money is going. But, don’t forget to thank them for their gift—even if you already did after receiving it. The impact that you’re reporting on is a direct outcome of these donors’ contributions.

Donors are motivated by your organization’s core mission. They believe in your mission enough to donate their time and money to your cause and want to see you succeed. They are the backbone of your success and want to know that their time and money are being spent wisely. Always make sure that your communications with your donors lead with transparency and authenticity in mind.

Sending well-curated and personalized thank you letters to your donors, sponsors, volunteers, and event attendees will help you nurture these relationships and hopefully retain their support long-term. Share the tips, best practices, and templates from this article with your team and show donors the gratitude they deserve.

Taylor has always believed that knowledge is power, and the pen (or, in this case, keyboard) is the sword. Philanthropy and human rights are at the core of her ethos. When she is not engaged in friendly debate, you can find Taylor training in the boxing ring, snowboarding on the mountains, or running on Vancouver’s seawall.

Keela humbly acknowledges the lands upon which we gather and work are the traditional, ancestral, and unceded territories of the xʷməθkwəy̓əm (Musqueam), Skwxwú7mesh (Squamish), and Səl̓ílwətaʔ/Selilwitulh (Tsleil-Waututh) Nations.

Prompt and thoughtful gift acknowledgments are central to effective fundraising. IRS regulations govern what documentation donors need in order to claim a deduction for their charitable contribution. The IRS website provides a comprehensive section on gift substantiation.

What should a "thank you" to donors include? There are no magic words that each nonprofit must include in "thank you" notes to donors; however, it’s important to be familiar with what donors expect, as well as what the IRS requires charitable nonprofits to include in the "gift substantiation" message. We also encourage you to think about how to say "thank you" in a personal and meaningful way.

When should a gift acknowledgment be sent? Soon! Donors expect to receive a "thank you" for any size of contribution, and they also expect it soon after making their gift. Sending the acknowledgment within a short period of time reassures the donor that the donation was received, and solidifies donor relations. Technically donors don't need the substantiation until sometime before they file their personal tax returns for the year the gift was made.

There are other ways to acknowledge a gift in addition to a written gift acknowledgment that is sent to the donor, whether via email or regular mail. Many nonprofits include a list of current donors in an annual report, or on their website; donors often look for their names on those lists and may be puzzled if they don't see themselves listed. They also may be unhappy if they have asked to remain anonymous and their name is listed. Make sure you know whether and how a donor would appreciate public acknowledgment of a gift.

Nonprofits want to make sure that donors feel appreciated and recognized for their generosity. In addition, IRS regulations require that before a donor claims a tax deduction for a charitable contribution, the donor must have a bank record or a written communication from the charitable nonprofit documenting the contribution. As a result donors expect a nonprofit to provide a receipt for their contribution. IRS regulations place the responsibility on donors to make sure they have a written gift acknowledgment "for any single contribution of $250 or more." There is no legal requirement for gift acknowledgments for contributions of less than $250 unless the donor receives something of value in return for the gift, which triggers special rules for “quid pro quo” contributions. For more background, see IRS Publication 1771 - Charitable Contributions: Substantiation and Disclosure Requirements

Generally, if the donor directs a grant to be made to your organization though a Donor Advised Fund (DAF) such as Fidelity Charitable or Vanguard Charitable, a DAF held at a community foundation, or through one of the DAFs that are set up to receive online donations such as Network for Good or PayPal Giving Fund, you’ll be given the donor’s name and contact information along with the grant. You’ll want to send an acknowledgment thanking the donor for the gift, but you don’t need to include language about the gift being tax-deductible, because the DAF already provided a tax receipt to the donor. Some experts recommend that your acknowledgment read something like, “Thank you for recommending the generous grant of $500.00, that we received on , through your donor advised fund at Fidelity Charitable.”

Sometimes a donor will ask a nonprofit to write a letter vouching for the dollar value of a non-cash gift. It is not the nonprofit's role to place a market value on contributions, and nonprofits don't want to be caught between the IRS and the donor if the market value of a gift is disputed, so the most appropriate response is to compose a gift acknowledgment message that only describes whatever it was that was contributed, without placing a dollar value on it. For non-cash /gifts-in-kind contributions with a claimed value of $5,000+ donors generally need an appraisal prepared by a qualified appraiser in order to claim the deduction. (Charitable nonprofits should not act as the appraiser.) See IRS Notice 2006-96.

Select this template to you help you get started with a personalized thank you letter for a donation received. You can also use it to help with sponsorship thank you letters. Use the optional donation receipt section if you have not already provided the donor with an official receipt or written acknowledgement.

Sending a donor a thank you letter doesn't need to be time consuming. Simply start with our free donation thank you letter template, personalize it, print it, sign it, and then send it. Follows these tips:

Refer to the original request that resulted in the donation so the donor knows their money will go to the appropriate cause. Better yet, provide additional details about how their money will actually be used. This helps them to envision how they are helping and will lead to higher satisfaction.

The IRS has specific guidelines when it comes to charities, nonprofit organizations and fundraising. There are also rules that donors must follow before taking deductions on their federal tax returns. See the IRS Publication 1771 listed in the resource section below for more details. It is actually a well-written document that does a good job of explaining the requirements in a way that is both comprehensive and easy to understand.

For over 30 years XYZ Charity has been helping children ages 8 to 17 attend summer camps where they not only have the best week of the summer, but develop skills and friendships that will last them a life time.

Because of your generous donation, we will be able to send an additional 4 kids to camp this coming summer. With your assistance we have now committed to sending 390 kids to camp and will continue working hard to reach our goal of 500 kids this year.

I am writing to request a copy of a donation receipt for tax purposes. Can you please send us a copy of our donation receipt for the 2009 calendar year? We made two donations totaling $500 dollars. We look forward to your prompt reply.

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