A donor acknowledgement letter has become more than just a “thank you” note. Many donors rely on a detailed, signed letter from the nonprofit for tax purposes. According to Cullinane Law Group, who specializes in nonprofit law, there are five items which must be included in an acknowledgement letter for the donor’s tax purposes:
- Tax-Exempt Status Statement (Be sure to include your EIN)
- Name of Your Organization, and Name of the Donor
- Date of the Contribution
- Details of the Contribution (Include the amount and a description of the donation, if applicable)
- Statements (Did the donor receive any goods or services in exchange for the gift?)
The trick to acknowledgement letters is personalizing the letter to both your organization, and the donor, but at the same time giving them the legal information that is needed for tax purposes. You should have a CRM that allows you to use pre-built templates for acknowledgement letters. These templates should pull in the specifics of the donation automatically, taking less work off of you. Once that template is set up one time, your work should be done!
Our OneLynk system allows you to customize numerous thank you emails for each online giving form you create. A donor who gives a large estate gift may receive a video acknowledgement, while a monthly donor may receive a detailed rundown of what their donation is used for on a monthly basis. Think outside the box. Your acknowledgement letters can be another way for you to share your organization’s story and encourage further giving! The possibilities are endless. Are you taking full advantage of your system’s acknowledgement process?
Cyndi Eaton is Director of Client Success at DonorLynk, LLC. DonorLynk is focused on helping nonprofits increase effectiveness and efficiency.