Like any receipt, a donation receipt provides crucial information about a transaction. However, instead of making a return, a donation receipt serves another vital function – it helps your donors secure their tax deduction for their gift.
A donation receipt is also an opportunity to share gratitude with your donors for their gift. That’s why most nonprofit receipts include a thank-you message along with the following crucial information about the gift:
- Donation amount
- Donation date
- Donation type such as cash, bank transfer, stock, etc.
- The organization’s EIN
- The donor’s contact information
- The organization’s contact information
- If any goods or services were given in exchange for this gift
- Any specific fund or purpose attached to the donation
Including all of this information gives your donors everything they need when it comes time to do their taxes. A detailed receipt also helps organizations keep track of donations if anything should happen with their own records.
When it comes time to write your receipt, start by drafting your heartfelt thank you. You might create different receipt copy for each campaign, or you might use the same receipt copy for all donations. However you approach it, including a gratitude statement ensures that each gift is properly appreciated.
Next, compile all the information listed above. Then, download our Tax-Compliant Donation Receipt template to help you structure your receipt. The template also includes a statement of gratitude that you can use and edit to make your own.
When should you send tax-compliant donation receipts?
The short answer: as soon as possible! A good rule of thumb is to send out your donation receipts no later than two days after you’ve received the donation. However, with online fundraising, donors are expecting a much quicker acknowledgment. That’s where Donorbox can help!
When someone gives using your Donorbox donation form, they will automatically receive a receipt with all the necessary information. You can customize this receipt for every campaign, too. Donors will never be concerned that their transaction didn’t go through!
Tips for writing your receipt
- Read your donation receipt draft out loud. This will help you catch any small errors that you might have missed while writing.
- Share your draft with a team member. Sometimes fresh eyes can catch things that we might miss, and a second look can offer feedback on the tone of your receipt.
- Add all the crucial information first, then focus on your gratitude message.
- Download our Tax-Compliant Donation Receipt to streamline the writing process!
For more assistance writing a tax-compliant donation receipt, check out this blog. Plus, learn how easy it is to send year-end tax receipts with Donorbox.
With the right resources, your organization can send tax-compliant, grateful receipts in no time!
