Donations made by charitable individuals serve as the fuel that keeps non-profit organizations running. While it is customary to show gratitude to donors, a simple thank-you letter may not suffice. With tax rules in place, organizations must send donor acknowledgement letters to donors who give a set amount of money.
If you are confused about non-profit donor acknowledgement letters, we’ve created a brief overview for you to follow.
If you donated at least $250 to a specific non-profit organization in the past year, you should receive a donor acknowledgement letter. This essentially acts as a receipt, and serves as written proof that the donation was made on a specific date.
Non-profit organizations typically send these letters out before January 31st, just before tax season starts.
Sending donor acknowledgement letters timely and efficiently is important for non-profit organizations because donors can use them for tax preparation. This is because charitable donations are some of the expenditures that individual taxpayers can deduct on tax returns.
Non-profit organizations should make sure they provide all the proper information on their donor acknowledgement letters so that preparing a donor’s tax deduction for charitable contribution is a seamless process.
A few key items that need to be included are: