It’s rare to find people willing to share a part of their time and resources to the needy and support a worthwhile cause. Charities, fundraiser activities, and sponsorship events are places where you get to meet some of the world’s kindest people. While you may not readily give back what they’ve offered, it’s only right that they receive the best form of gratitude. Give them a heartfelt donation acknowledgment letter in exchange for their good deed. It’s an efficient way to express your gratitude genuinely. It also serves a valuable purpose of being a legal tax-exemption requirement. Learn more about this in the article below.

FREE 12+ Donation Acknowledgement Letter Samples

1. Free Donation Acknowledgement Letter

free donation acknowledgement letter

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2. Free Donation Acknowledgement Letter Template

free donation acknowledgement letter template

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3. Free Acknowledgement Letter for Book Donation

free acknowledgement letter for book donation

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4. Charitable Gift Acknowledgement Letter

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5. Sample Gift Acknowledgement Letter

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6. Donation Acknowledgement Letter

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7. Sample Donation Acknowledgement Letter

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8. Charity Written Acknowledgment Letter

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9. Sample Charity Auction Acknowledgement

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10. Charitable Acknowledgement Letter Template

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11. Charity Acknowledgement Letter Format

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12. Simple Donation Acknowledgement Receipt Letter

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13. Formal Charitable Gift Acknowledgment Letter

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What Is a Donation Acknowledgment Letter?

A donation acknowledgment letter is essentially a letter of gratitude sent by a group or individual in response to a donor’s contribution to their needs and endeavors. Aside from being an acknowledgment letter, this document also satisfies a legal requirement. This letter will serve as the donors’ donation receipts if their contribution amount to $250 and up. It also qualifies them for a tax-exemption. It serves a dual purpose of expressing gratitude and fulfilling tax requirements for the IRS.

Why Send a Thank You Letter

Why send a thank you letter when a firm handshake and genuine words of gratitude won’t fall short of being a sincere expression of your appreciation? It’s a common practice for nonprofit organizations and charity programs to send thank you letters to their sponsors and donors for their kindness. 

Nowadays, where transactions are almost always online, it’s even more challenging to send your warm thanks when donations exist on wireless transactions with mostly anonymous individuals. This is where appreciation letters become more integral.

According to The Balance Small Business, online donors other adore thank you letters for various reasons. Among the reasons are because people remember letters better. It also makes donors feel more appreciated. When they receive a mail on their doorstep, they’re more likely to get compelled to do it again. According to the same article, printed letters inspire first-time sponsors the most. It has the highest potential to encourage someone to give again, making them a potential regular donor.

How to Make a Donation Acknowledgement Letter

If you’re unsure how to make your thank you letter, here are some tips for you to follow:

1. Express Your Gratitude

More than being a requirement for tax exemption, it’s an “acknowledgment letter.” Your letter shouldn’t skip on expressing your gratitude towards the donor. Narrate a brief thank you statement on your letter’s introduction. This way, your recipient can easily recognize what the letter is all about and keep reading towards the end. Even when you want your thank you letter to be expressive and appreciative, never write a long letter opening. Consider your recipient’s time, so keep it concise and direct.

2. Provide a Donation Description

It’s also necessary to provide the right donation description in your letter. This way, the recipient knows that you’ve received the right cash amount or the right material donation. Doing so is also among the IRS’s requirements of an acknowledgment letter that would qualify a tax-exempt. If it’s a cash donation, state the full amount and the kind of transaction it underwent (e.g., checks, credit cards, payroll deductions). If it’s a non-cash donation, forget the value and describe the goods. For example, if your organization received financial support from a nonprofit group for a fundraising event, your donation thank you letter should disclose the full amount. If it’s an equipment donation, provide the quality and the quantity.

3. State the Benefit of the Donation

Don’t forget to relay how the donation is going to benefit your organization. More than knowing their donations were received well; donors also need to know how their contribution benefited you. They would want your charity donation letter to have a statement of how they’ve been of help to you and your organization. Express your appreciation by describing how you plan to use the donation. For example, if a private company affirmed your medical supply request for your public, state how the medicines and the equipment would provide support for the residents in the vicinity. This will motivate them to reach out and help more.

4. Keep Your Tone Direct and Professional

You might want to express your gratitude meaningfully by writing an emotional response to your charitable data-preserver-spaces=”true”>project plan’s large donation. However, this might result in increasing your letter’s wordcount. A lengthy acknowledgment letter might be ineffective, especially if you’re sending it to offices with minimum time to spare when reading documents. Keep your tone direct and professional. Include everything that your letter needs to have and add o more. A brief content doesn’t mean the gratitude is insincere.

FAQs

To make the donation acknowledgment letter a viable IRS requirement, does it need to be in a business letter format?

No, it doesn’t have to be in a business letter format. It can be in any form of emails or cards as long as it has the right elements.

What are the elements of a donation acknowledgment letter to make it a qualified requirement?

Here are the elements of a donation acknowledgment letter:

  • Tax-exemptions statement
  • Name of the donor or organization
  • Description of the donation
  • Date of the donation
  • Statement if the donor received anything in exchange for the donation

How do you determine the fair market value of a material donation?

To determine the fair market value of donated materials, it should be 30% of the item’s original price.

A donation acknowledgment letter might be nothing but a document, but it means a ton to the recipient. It’s also a genuine way to say thank you in a way that can be kept and remembered for a long, long time. It also encourages people to give more other than their first time. Take yours from our collection of donation acknowledgment letter templates now.

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