Nonprofit Donations: Donor Acknowledgment

July 6, 2026
Image of nonprofit volunteers at a donation drive
Image of Edwina Quiddaoen, CPA at Jones & Roth CPAs & Business Advisors

Donations are essential to non-profit organizations. Non-profit organizations should establish policies and procedures for acknowledging charitable contributions. Proper donor acknowledgments not only help donors substantiate tax deductions but also demonstrate good stewardship and donor service. When donors make a single contribution of $250 or more, the donor must obtain a receipt from the recipient organization in order to claim a tax deduction for the donation. While charitable organizations are not subject to IRS penalties for failing to issue donor receipts, there are potential donor relation consequences if a donor’s tax deduction is disallowed due to inadequate documentation of a charitable gift.

The acknowledgment can take the form of a thank you letter, or something that looks more like an official receipt. Whatever method is used for the acknowledgment, the following information is required to be included:

  • Legal name and address of the non-profit organization;
  • Date of the contribution;
  • The amount of any cash contributed;
  • A detailed description of any non-cash/property contributed, but not the value; and
  • A statement indicating whether any goods or services were provided in exchange for the contribution and, if so, a good-faith estimate of the value of the goods or services provided by the organization to the donor.
It may be useful to include confirmation of the non-profit organization’s 501(c)(3) tax-exempt status and the name of the donor, however, that information is not specifically required under the IRS’ acknowledgment rules. With regard to noncash contributions, it is worth noting that the donor, not the organization, is generally responsible for determining the value of the donated property.
 
Donor acknowledgments should be sent on a timely basis. While many organizations issue annual contribution summaries by January 31, the IRS generally requires donors to obtain a contemporaneous written acknowledgment before filing their tax return for the year of the contribution. Although written acknowledgments are generally required only for contributions of $250 or more, many organizations provide receipts for all donations. Maintaining standardized templates for common donation scenarios (cash versus non-cash donations, goods or services provided versus not provided) can help ensure consistency, strengthen donor relations, and reduce administrative burden.
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