Donation acknowledgment letter 2023 (guide + free template)

This post covers a Donation acknowledgment letter.

Acknowledging that you have received something from someone has been termed to be a kindful act.

But when it comes to charitable donations things are a bit different.

If a donor has made a $250 or greater gift, you are required by law to send them a donation acknowledgment letter to that effect.

The IRS mandates that charitable organizations send these donors a formal acknowledgment letter for tax-related reasons.

That legal requirement shows that writing a Donation acknowledgment letter is a huge responsibility

And that is why I have decided to write this post to guide you on everything you need to know about writing an effective Donation acknowledgment letter for both, legal and non-legal purposes.

Here I will take you through

  • What is a donation acknowledgment letter
  • why do you need to write a donation acknowledgment letter
  • How to write an effective donation acknowledgment letter
  • Donation acknowledgment letter template
  • etc.

let’s get started

Related: Donation request letter (guide + free samples)

What is a donation acknowledgment letter

A donation acknowledgment letter is a brief statement of facts written by the donee to the donor for the purpose of acknowledging and confirming that he has received the gift or donation.

I recommend sending donation acknowledgment letters to all of your donors for the reasons that I will explain in the following section

Why do you need to write a donation acknowledgment letter?

The following are the reasons as to you need to write a donation acknowledgment letter to all of your donors

  • To comply with ‘over $250 donation’ IRS rules
  • To let your donors know you’ve received their donation.
  • It is a great way to say thank you, express your gratitude and appreciation for the donor’s support
  • To keep a record of the gifts you received from donors
  • It provides you with the chance to interact with your donors and build rapport.

How to write an effective donation acknowledgment letter

A donation acknowledgment letter is written in a business letter format. Begin your letter with your address and contact information, followed by a date and the donor’s address, and state that you are writing to acknowledge the receipt of the donation, Finish with “Sincerely,” followed by your name and signature.

REMEMBER! The primary goal of your donation acknowledgment letter is to acknowledge the receipt of the donation.

Thus the following is how you can write an effective donation acknowledgment letter

  • Provide your name/organization, address, and contact information
  • Include the date of the letter
  • Include the donor’s name, address, and contact information
  • Provide the description of the donation (monetary and non-monetary)
  • State the amount received
  • Provide the date the donation was received
  • Declare that your organization is tax-exempt.
  • Provide the employer identification number for your organization.
  • Maintain a professional tone
  • Be honest
  • Express your gratitude and appreciation

Donation acknowledgment letter template

The following is a template for the Donation acknowledgment letter

Your Organization Name
Address
City, State, Zip Code
phone
email
website

DATE

[Donor’s Name]
[Donor’s Street Address]
[Donor’s City, State, and Zip Code]

RE: Acknowledgment of receipt of your generous donation to our Organization

Dear [recepient’s last name]

It is with great enthusiasm, we write this letter to acknowledge that we have heartwarmingly received your generous donation of [if the donation is monetary insert exactly the amount, if not describe the donation] to our Organization.

Donors like you are essential to the long-term success of our goal to [insert your goal or mission], and we are grateful for your support.

As a tax-exempt nonprofit under Section 501(c)(3) of the Internal Revenue Code (EIN #000-000-0001), every donation counts, and we appreciate your contribution. (include this paragraph if you are writing for TAX purposes)

Your contribution was not exchanged for any goods or services, and it is tax-deductible to the full extent authorized by law. Please keep this letter for tax purposes. (include this paragraph if you are writing for TAX purposes)

Thank you once more for your commitment to supporting our mission to [mission] and assisting us in our vision to [vision].

We’re delighted to keep working with you to [objectives]

Sincerely

[name]
[position]
[signature]

Things to consider when writing a Donation acknowledgment letter

The following are the dos and the don’t of writing a Donation acknowledgment letter

Your feeling is important

How did you feel when you received the donation?

Be sincere and express that in your Donation acknowledgment letter.

Always remember to write from the heart when you begin to create your letter. Write down your emotions.

Make your letter as authentic and real as possible.

This is your opportunity to express gratitude while also acknowledging receiving gifts or donations from the individual or organization with a pleasant attitude.

Mention the donor’s full name

This is important.

Everything is craving for the feeling of being important and the easiest way to give it to someone is by calling their full name.

Make sure you place the full name of the donor or the full name of the organization that has given the donations.

Describe the donation clearly

It is the best thing for a donor to know that you have received exactly the thing that he donates to you.

So in your letter make sure you have decided and list as many details as possible to satisfy the donor that the donation was duly received.

Use the proper means to deliver your letter

Sometimes the donor may specify the means to send your correspondence to them.

If that is not the case;

The following are effective methods for sending your acknowledgment letter to the donor:

  • Hand-delivers the letter at their place of business (this is the most effective way)
  • Using certified mail to serve the tenant ( always use the specified mail address )
  • Using e-mail (do not prefer this method because you can not prove whether your letter was received or not)

Deliver your letter on Time

This step is equally important to composing your letter.

For your letter to be effective, it must reach the donor on time.

The IRS doesn’t, technically, specify a deadline for delivering donation acknowledgment letters.

However, that does not imply that you have unlimited time to send them out.

Try to submit your donation acknowledgment letter by January 31 of the year after the donation.

That is simply because Donors may require your donation acknowledgment. before the deadline for federal tax filing.

Read also: Debt acknowledgment letter (guide + free sample)

Isack Kimaro
Isack Kimaro

Editor-in-chief and founder of sherianajamii.com. Holder of Bachelor of Laws (LL.B) and Post Graduate Diploma in Legal Practice. Lawyer by profession and blogger by passion