Non-Profit Donor Acknowledgement Letter
Non-Profit Donor Acknowledgement Letter Preparation Form (Coming Soon) – We recommend that you gather the information in this form prior to accessing the online questionnaire. Doing so will help you efficiently create your custom Non-Profit Donor Acknowledgement Letter.
SummaryNon-profits rely heavily on donations and contributions from individuals, corporations, and other donors to fund their operations and charitable programs. An individual donor may claim a charitable tax deduction on its federal income tax return equal to the value of the donation, less the value of any goods or services received from the non-profit in exchange. Federal tax law requires that:
- The donor have a bank record or a written communication from the non-profit regarding the contribution before it can claim a charitable deduction.
- The donor obtain a contemporaneous written acknowledgment of any single contribution of more than $250. This acknowledgement serves as proof of the contribution.
- The non-profit proactively provide a donor with a specific written disclosure statement if the donor made a single contribution of more than $75 and received goods or services from the non-profit in exchange (known as a quid pro quo contribution). Non-profits that fail to meet this disclosure requirement are subject to a $10 per contribution penalty. This penalty is not to exceed $5,000 per fundraising event or mailing. A non-profit may avoid the penalty if it can show reasonable cause for the failure.
DetailsThe law generally places the burden of obtaining the acknowledgment on the donor. However, it is often in the non-profit’s best interest to proactively provide one, even if not required, providing the acknowledgment:
- Gives the non-profit an opportunity to build donor relationships that may result in future contributions.
- Helps the non-profit meet donor expectations that the non-profit received and appreciated the donation.
- Makes it easier for the donor to claim a tax deduction.
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