How to Write a Donation Receipt
Why Donation Receipts Matter
Donation receipts are an essential part of the giving process and donor recognition. While the content itself may be straightforward, the timing and delivery of donation receipts can make the difference between satisfied donors and unnecessary tax-season complications.
Receipts should be issued in a way that is fully compliant with IRS requirements and should always be provided to donors.
Getting Started With Donation Receipts
Donation receipts benefit both donors and organizations:
Donors use receipts to confirm their gift was received and to deduct charitable contributions from their taxes
Organizations use receipts for bookkeeping and tracking donor history
While receipts are legally required only for donations over $250, it’s considered best practice to send a receipt for every donation.
Keep in mind:
Donations must be made without receiving goods or services in return to be tax-deductible
Event tickets, raffle tickets, and online store purchases are not tax-deductible
Useful Practices for Writing Donation Receipts
Taxes are complicated enough—so donation receipts should be clear, simple, and easy to understand. Below are best practices to ensure your receipts meet donor and compliance needs.
Keep the Formatting Simple
Donors should be able to quickly scan their receipt and find key information, including:
Donation amount
Donation date
Your organization’s federal tax ID
A clean email or document with minimal design elements works best. Save expressive language for your thank-you message—on the receipt itself, a brief expression of gratitude is sufficient.
Remember Donations of Goods and Services
In-kind donations deserve the same level of care as monetary gifts.
Best practices include:
Issuing receipts for donated goods or services valued over $250
Maintaining consistent receipting standards across all donation types
While donors are responsible for estimating the value of their in-kind donation, organizations may include the fair market value on the receipt as a courtesy.
Make Use of Automation
Automated receipting is a standard feature in many nonprofit software platforms and can significantly simplify your workflow.
Benefits of automation include:
Faster receipt delivery
Consistent formatting and branding
Easier recordkeeping for recurring donors
This consistency is especially helpful for donors who give multiple times throughout the year.
Say Thank You—Separately
A well-written thank-you note does not replace a donation receipt—even if gratitude is mentioned in the receipt itself.
Research shows that first-time donors who receive a personalized thank-you message within 48 hours are four times more likely to donate again.
While this may sound time-consuming, personalization can be automated using software and mail merge tools—allowing you to preserve a personal touch at scale.
Need Help With Donor Recognition?
If you’re looking for guidance on donor recognition strategies or meaningful ways to show appreciation, we can help.
We are a donor recognition wall company with years of experience designing and producing high-quality donor signage and recognition systems. Our team works with organizations to design customized donor walls, plaques, and other recognition solutions tailored to your space and goals.